Y Combinator alum Meesho, one in every of a number of “social promoting” startups gaining velocity in India, will add extra options to its e-commerce platform after closing a $11.5 million Sequence B led by Sequoia India. Present traders SAIF Companions, Y Combinator and Enterprise Freeway additionally returned for the spherical, which brings the Bangalore-based startup’s complete funding to this point to $15 million. Its final spherical of funding, a $three.four million Sequence A, was introduced final October.
Like social promoting rivals together with GlowRoad and Zepo, Meesho’s mannequin combines dropshipping from its wholesale companions with a complete suite of e-commerce instruments and providers. This reduces overhead whereas making it simple for sellers, who Meesho says consists of many housewives, college students and retirees, to arrange an internet enterprise by WhatsApp, Fb and different social media.
Meesho’s instruments embody an internet platform that enables sellers to handle purchases and course of funds, in addition to a community of wholesale suppliers (its important classes are presently trend and life-style objects) and logistics suppliers. In different phrases, it affords virtually the whole lot its distributors want to begin promoting on-line. This leaves distributors chargeable for buyer acquisition, choosing what objects they wish to embody of their on-line retailers and advertising and marketing them.
This reselling mannequin appeals to small shops, in addition to people, who need to earn more money however don’t need the expense of establishing an e-commerce enterprise from scratch and carrying stock. Meesho’s rivals embody e-commerce startups like GlowRoad, Shopmatic and Zepo, which have additionally just lately raised massive funding rounds. All of those firms entice sellers by providing a major quantity of assist with order administration, fee processing, success and logistics.
As a way to differentiate, chief government officer Vidit Aatrey, who co-founded Meesho in 2015 with Sanjeev Barnwal, its chief expertise officer, tells TechCrunch it focuses on product high quality, pricing and personalization to assist resellers enhance their gross sales and customer support. Meesho claims that greater than 800,000 resellers have used its platform and “typical” reseller earns between 20,000 to 25,000 rupees monthly (about $298 to $373).
In a press assertion in regards to the funding, Sequoia India managing director Mohit Bhatnagar mentioned “Social commerce is the way forward for e-commerce in India. Individuals purchase from folks they belief, and that’s what Meesho permits. Entrepreneurs, lots of them girls, use the Meesho platform to suggest, customise and promote to their household and buddies. Social promoting is a large development and Sequoia India is happy to accomplice with Meesho, which is the early chief on this house.”
Aatrey says Meesho’s Sequence B capital will probably be used to rent extra folks for its tech and product groups as a way to construct a set of latest buyer acquisition and promoting instruments. The startup additionally plans so as to add extra personalization choices for its resellers and product classes.