Meesho Raises $275M, Grows to 150M Users

Meesho, a prominent e-commerce startup in India with approximately 150 million transacting users, has announced securing $275 million in a new funding round, according to a securities filing.

The financing round is anticipated to expand to over $500 million, including secondary transactions.

The Bengaluru-based startup, renowned for its social commerce platform, is reportedly being valued at around $3.9 billion in this round, down from its previous valuation of $4.9 billion in September 2021.

Several investors, including WestBridge Capital and Norwest Venture Partners, have shown interest in investing in Meesho. WestBridge Capital acquired Meesho shares from Venture Highway last year. Among the notable backers of the company are Meta, Fidelity, Peak XV, Prosus Ventures, B Capital, and SoftBank.

Meesho has emerged as one of the fastest-growing e-commerce startups in India, boasting a run-rate gross merchandise value (GMV) exceeding $5 billion, as estimated by Bernstein analysts earlier this year. The platform has garnered attention for its attractively priced, diverse, and unbranded assortment of goods, particularly appealing to value-conscious consumers across income segments.

With 440,000 annual transacting sellers and over 120 million listings, Meesho offers one of the broadest product assortments in the Indian market, catering to varied consumer preferences. Unlike traditional e-commerce platforms, Meesho’s average order value (AOV) is typically below ₹350, emphasising affordability and accessibility.

Meesho’s algorithm prioritises listings based on seller and product ratings, customer reviews, past shopping behaviour, and product popularity, influencing pricing and discoverability on the marketplace. Moreover, the platform’s lower fulfilment charges enable it to offer competitive prices compared to others.

However, the competitive landscape is intensifying, with Amazon India recently launching Bazaar, a “special store” featuring affordable fashion and lifestyle products. Despite the increasing competition, Meesho’s unique value proposition and customer-centric approach continue to position it as a frontrunner in India’s rapidly evolving e-commerce sector.

Disclaimer: This information is covered based on the latest research and development available. However, it may not fully reflect all current aspects of the subject matter.

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