In a recent article on TechCrunch.com, Meesho, a prominent e-commerce startup in India boasting approximately 150 million transacting users, announced it has raised $275 million in a new funding round.

The new funding is part of a larger financing round that is expected to include secondary transactions, potentially swelling to over $500 million, according to sources familiar with the matter who spoke to TechCrunch.

Headquartered in Bengaluru, Meesho operates a social commerce platform and is currently valued at about $3.9 billion in this round, the sources said, requesting anonymity as the discussions are ongoing. The startup has raised more than $1.2 billion to date and was valued at $4.9 billion during its last capital raise in September 2021.

Several investors have expressed interest in Meesho, including West Bridge Capital and Norwest Venture Partners. Last year, West Bridge acquired Meesho shares from Venture Highway, an early backer. Meta, Fidelity, Peak XV, Prosus Ventures, B Capital, and SoftBank are among the startup’s backers.

The Economic Times first reported the new funding.

Meesho is one of the fastest-growing e-commerce startups in India, with analysts at Bernstein estimating a run-rate GMV of more than $5 billion earlier this year.

The company has successfully attracted value-conscious Indian consumers with its competitively priced, diverse, and unbranded range of products. This value proposition seems to resonate well with India’s predominantly low- to mid-income consumer base.

With 440,000 annual transacting sellers and over 120 million listings, Meesho boasts one of the widest assortments of goods across platforms, catering to the diverse preferences of the Indian market, according to a recent note from Jefferies to its clients.

Traditional e-commerce platforms in India have historically targeted high-income consumers and branded suppliers, resulting in average order values (AOVs) well above ?1,000 ($12). In contrast, Meesho’s AOV is typically below ?350.

Meesho’s algorithm prioritizes listings based on multiple factors, including seller and product ratings, customer reviews, past shopping behavior, product popularity, and pricing, which influences the discoverability of products on the marketplace,” Jefferies analysts wrote.

Meesho’s fulfillment charges are significantly lower than its peers, enabling the platform to offer lower prices compared to the competition. To further reduce costs, Meesho follows an asset-light model and outsources delivery. Meesho currently accounts for nearly half of India’s annual 3PL e-logistics shipments,” the note continued.

However, the competition is intensifying. Amazon India recently launched Bazaar, a “special store” featuring affordable and trendy fashion and lifestyle products.


Source: https://techcrunch.com