Founded in 2015 by Vidit Aatrey and Sanjeev Barnwal, Meesho has become one of India’s leading social commerce platforms, revolutionizing how small businesses and individual entrepreneurs sell products online. With its headquarters in Bangalore, Meesho provides a zero-investment platform for resellers and small businesses, enabling them to launch, manage, and grow their online stores via social channels like WhatsApp, Facebook, and Instagram.
From selling fashion apparel and accessories to home essentials and electronics, Meesho serves as a one-stop marketplace tailored for Tier 2, Tier 3, and Tier 4 cities in India. The company has positioned itself as a platform focused on affordability, accessibility, and empowerment.
Key Product Offerings
- Reseller Platform
Meesho offers a user-friendly mobile application that enables individuals to sell products without owning inventory. Resellers share catalogs with their contacts, collect orders, and earn a margin on each sale. - Supplier Platform
Manufacturers and wholesalers can list their products on Meesho’s platform, gain access to a national audience, and manage logistics and payments efficiently through Meesho’s integrated system. - Meesho Mall
A curated section of the platform that offers branded products at competitive prices, providing customers with more choice and better-quality assurance. - Logistics and Payment Support
Meesho handles end-to-end logistics, including order pickup, delivery, returns, and payments, streamlining the process for both resellers and suppliers. - Data Analytics Tools
Resellers can access basic analytics to track order history, returns, and earnings, helping them understand buyer behavior and improve performance.
Funding History
Meesho has attracted significant investor interest since its inception, including major global and domestic venture capital firms.
| Funding Round | Date | Amount Raised | Key Investors |
|---|---|---|---|
| Seed Round | 2016 | $120K | Y Combinator |
| Series A | 2017 | $3.4M | SAIF Partners |
| Series B | 2018 | $11.5M | Sequoia India |
| Series C | 2019 | $25M | DST Partners |
| Series D | 2019 | $125M | Naspers, Facebook |
| Series E | 2021 | $570M | SoftBank Vision Fund 2, Prosus, Fidelity |
| Total Funding | — | Over $1.1B | — |
In 2019, Facebook made a landmark investment in Meesho, marking its first direct investment in an Indian startup, reflecting Meesho’s strategic importance in India’s social commerce space.
Business Model
Meesho operates on a B2B2C (Business-to-Business-to-Consumer) model:
- Suppliers upload their product catalogs to Meesho.
- Resellers choose products, set their own margins, and share them with customers via social media.
- Customers place orders through resellers.
- Meesho fulfills the order, collects payments, and distributes earnings to resellers and suppliers.
Meesho provides a commission-based marketplace. While the platform has transitioned to zero commission for select categories, it continues to monetize through:
- Logistics charges
- Advertising fees (Meesho Ads for sellers)
- Value-added services for vendors
Revenue Model
Meesho’s revenue primarily comes from the following channels:
- Logistics Service Fees
Charged to suppliers for handling delivery and return logistics. - Advertisement Revenue
Sellers can promote their listings through Meesho Ads for better visibility, generating ad revenue for the platform. - Platform Service Fees
While Meesho reduced commissions in 2021 to encourage seller participation, some product categories still carry nominal fees. - Financial Services (Emerging)
The company is exploring embedded financial products such as credit or insurance for sellers and resellers.
Case Study: Empowering Women Entrepreneurs in Tier 3 Cities
Background:
Priya, a homemaker from Jabalpur, started using Meesho during the pandemic to support her family financially. With no prior business experience, she began reselling ethnic wear by sharing catalogs via WhatsApp.
Challenges Faced:
- Limited digital literacy
- Trust issues with online payments
- Lack of inventory and upfront investment
Meesho’s Impact:
- The app’s intuitive interface made it easy for her to learn the process.
- Meesho handled logistics and cash-on-delivery, solving the payment concerns.
- With zero investment required, she risked nothing while earning consistent income.
Results:
- Within 8 months, Priya built a customer base of over 300 people.
- She started earning ₹15,000-₹20,000 per month.
- She eventually onboarded her husband and turned her reselling into a family business.
This example reflects how Meesho’s platform is not just a business tool—it is a livelihood enabler.
SWOT Analysis
Strengths:
- Low barrier to entry: Zero investment model attracts a large number of resellers.
- Large user base: Over 140 million users and 15 million resellers (majority women).
- Efficient logistics: Integrated delivery and return system.
- Strong backing: High-profile investors and strategic partnerships.
Weaknesses:
- Low margins: Cost competitiveness limits profitability.
- High return rates: Especially in apparel and accessories.
- Dependence on Tier 2-4 cities: Slower monetization and infrastructure challenges.
Opportunities:
- Financial services: Lending, insurance, and credit lines for sellers.
- International expansion: Targeting similar markets in Southeast Asia or Africa.
- AI-driven personalization: Improving user experience and retention.
Threats:
- Intense competition: From Amazon, Flipkart, and other emerging social commerce platforms.
- Regulatory changes: E-commerce rules in India are evolving.
- Fraud and trust issues: Maintaining product quality and service standards.
Conclusion
Meesho is a pioneer in India’s social commerce landscape, creating a unique ecosystem where anyone can become an entrepreneur with just a smartphone. By democratizing e-commerce, especially for non-metro users and women, Meesho is not just building a business—it’s fostering a socio-economic movement.
With strong backing from global investors, an expanding product base, and strategic innovations in logistics and technology, Meesho is poised to shape the next phase of inclusive digital retail in India.
