Meesho, a social commerce platform in India, was founded in December 2015 by two IIT Delhi graduates, Vidit Aatrey and Sanjeev Barnwal. The idea for Meesho originated when Vidit and Sanjeev noticed the significant potential in small businesses and individual entrepreneurs who were leveraging social media platforms like Facebook and WhatsApp to sell their products. Recognizing the gap in the market for a dedicated platform to support these sellers, they set out to create a solution tailored to their needs.
The journey of Meesho wasn’t devoid of obstacles. One of the primary challenges was gaining the trust of the sellers and convincing them to transition from informal selling on social media to a structured platform. There was also the technical challenge of building a scalable and user-friendly platform that could cater to the needs of sellers who might not be very tech-savvy.
Furthermore, Meesho had to educate the market about the concept of social commerce. They needed to prove the viability of their business model, which was based on the commission they earned from the sales made through their platform. Competing with established e-commerce giants like Amazon and Flipkart also posed a significant challenge.
Despite these challenges, Meesho experienced rapid growth. The platform’s user-friendly interface, coupled with the immense support and resources provided to the sellers, such as logistics and payment solutions, helped attract a large number of users. The company also focused on leveraging the vast network of small businesses and resellers across India, tapping into the country’s entrepreneurial spirit.
The turning point for Meesho came when it received backing from prestigious investors. In 2016, they received seed funding from Y Combinator, which provided not just financial backing but also mentorship and networking opportunities. This was followed by multiple rounds of funding from prominent investors such as Sequoia Capital, SAIF Partners, Shunwei Capital, and DST Global.
Meesho continued to innovate and adapt its platform to better serve its users. They introduced a range of features aimed at simplifying the selling process, such as inventory management, order tracking, and customer engagement tools. Additionally, Meesho expanded its product categories, allowing resellers to offer a broader range of items, including fashion, electronics, home goods, and more.
The company also made strategic moves to strengthen its position in the market. One such move was its partnership with Facebook in 2019, which resulted in an investment from the social media giant. This partnership not only provided Meesho with additional capital but also significant exposure and credibility in the social commerce space.
Meesho has been strategic about mergers and acquisitions to expand its capabilities and market reach. In 2021, the company acquired the fashion marketplace Voonik. This acquisition allowed Meesho to enhance its fashion vertical and offer a more comprehensive range of fashion products to its resellers and customers.