Meesho Business model & The ultimate Detailed case study 2021

Meesho

Meesho Business model – Meesho is social e-commerce startup Started by IIT Delhi graduate Vidit Aartrey and Sanjeev Barnwal in December 2015. It stands for Meri shop Meesho, the latest Indian unicorn, and deals as a digital reselling platform. That enables Small businesses to connect and sell via social media platforms, with the main hook being to start an online business from home without investment.

Meesho Business model enables small and medium businesses and individuals to start their online stores through social Platforms such as Whatsapp, Facebook, Instagram, etc. The company headquarter is located in Bangalore, Karnataka.

Meesho has been funded 9 times with a total of $515.2M. Meesho’s latest round of funding came on April 5, 2021, in a series “E” round of funding. Currently, the Meesho Business Model has 2 million active sellers and the SoftBank Vision Fund has invested $300 million into it, valuing the company at approximately $2.2 billion.

Meesho Business model became India’s first startup model In which Facebook has invested in June 2019.

Type of sitePrivate
FoundedDecember 2015; 6 years ago
HeadquartersBangalore, Karnataka, India
Area servedIndia
Founder(s)Vidit Aatrey and Sanjeev Barnwal
Key peopleVidit Aatrey (CEO) Sanjeev Barnwal (CTO)
IndustryE-commerce
ProductsMobile App
ServicesSocial Commerce
Employees1250+
URLmeesho.com

Founder of Meesho Reselling platform

Founder of Meesho Reselling platform

Vidit Aatrey and Sanjeev Bansal was the founder the Meesho in Dec 2015. Vidit Aatrey is the CEO of India’s largest reselling platform called Meesho. He completed his graduation from IIT Delhi(Indian Institute of Technology) in electrical engineering.

History of Meesho – How the Meesho Business model was created

Simply Meesho means meri shop, and this whole Meesho Business model is started with a straightforward objective. Meesho founder Vidit Aatrey wanted to give a shop to people who found it too difficult to start a business.

Meesho Business model mostly enables women, homemakers, and even some men to start their online business on Facebook, WhatsApp, and Instagram without investing through Meesho.

The initial investment is the biggest problem faced by most small business owners in India to start their own shop. So, the idea of Meesho comes into their mind from this problem then he started Meesho in Dec 2015. To provide an online shop to every individual who wants to start a business. Currently, Meesho has more than 2 million active sellers who are making money on their platform. It has more than 20,000 manufacturers distributed through Meesho across the country, which they could never do earlier.

Meesho Business model – How Meesho actually working

Meesho Business model - How Meesho actually working
  1. Meesho associates with the manufacturer and seller for the product and lists their product into the Meesho platform.
  2. The company attracts the reseller through their extensive marketing. Then the Reseller has come on Meesho reselling platforms and resells the product via Facebook, Instagram, and other social networks.
  3. If Customers want to purchase the product, then they have given the order to the reseller. After receiving the order, the reseller adds their profit margin on that particular product to place the order.

In this total process, Meesho also charge a commission amount

Revenue model & Meesho Business model

  1. Commission – Just like other E-commerce platform Meesho charge certain amount charge on the product to the seller. Charges depend upon the type of product. In 2019 Meesho earn a total commission of Rs.41 crore out of a total profit of Rs.80 crore.
  2. Penalty – If the seller fails to deliver the product, then Meesho charges a penalty to sellers. It also a great source of earning for Meesho.
  3. Logistic – It has also provided delivery & shipping facilities to their sellers; however, Meesho makes a distribution chain, earning a great amount through logistics. In 2019 Meesho earn Rs.36 Crore from Shipping.
  4. Rank push – If sellers want to rank on top on the Meesho platform or Display the product on top for easily visible by resellers or increase the sell of the product increases their product sell. Meesho charges for it a certain amount and earns a great amount through this.
  5. Data As we all know, data is the future, so Meesho has collected all data of sellers and buyers. So if the company want, they can sell the data earn a great amount.

Funding of Meesho app

Funding of Meesho

On 5 September, Meesho Businesses raised their latest funding round from the Series E round, raising their total funding to $515.2 Million.

  1. Y Combinator, the Mountain View, California-based seed accelerator, was selected the Meesho for a three-month Summer program where Meesho has secured $120,000
  2. nvestors Rajul Garg,VH Capital, Kashyap Deorah, Investopad founders Maninder Gulati, Abhishek Jain, Arjun and Rohan Malhotra, and Jaspreet Bindra.
  3. In October 2017, In the Series A round, Meesho had raised $3.1 million funding from investors to manage by Indian venture capital firm SAIF Partners, bringing its total funding to $3.7 further in August 2016. The startup raised an undisclosed seed round from Indian angel million.
  4. In 2019 invest in Meesho has raised $11.5 million in Series B round funding from Sequoia India.
  5. After that, in November 2018, Meesho closed it’s Series C raise worth $50 million from China’s Sunwei capital DST Partners, RPS Ventures, and earlier investors Sequoia India, SAIF Partners, Venture Highway, and Y Combinator.
  1. In June 2019, the First time Facebook was invested in a Meesho Business model
  2. In August 2019, Meesho raised $125 million in Series D round led by Naspers, with participation from existing investors SAIF, RPS Sequoia, Shunwei Capital, and Venture Highway. Former Vodafone Group CEO Arun Sarin and Facebook also participated in the round.
  3. After that, in April 2021, Meesho raised $300M led by Softbank Vision Fund 2, giving it a valuation of $2.1B. Old investors like Facebook Prosus Ventures, and Knollwood Investment Shunwei Capital, Venture Highway also participated.

Future of Meesho – Is the Meesho Business model profitable or not

Most of the companies run their businesses with aim and objective So,

The objective of Meesho is the straightforward aim of providing an online shop to every individual who wants to start a business. And Currently, Meesho has more than 2 million active sellers making money on its platform, but Meesho is still a loss-making startup.

In the financial year, 2018-19 Meesho expences approx Rs.185.30 crore, but the company generated only Rs 84.8 Crore and incurred a loss of Rs. 100 crore.

Meesho incurred 91% of its expenditure in Providing free shipping and Running Advertisement, and this the biggest reason Meesho is India’s no.1 reselling platform.

Opportunity for Meesho Business model

With the help of seller product data, In the future, Meesho will be easy start their own manufacturing and earn a great profit margin on their product. It takes the Meesho Business model to the next level.

meesho can launch their own e-commerce/Direct selling platform with the help of their extinct customer base. Meesho also charge listing of the product on their platform

How to earn with Meesho – Understand the Meesho business model

How to earn with Meesho - Understand the Meesho business model
Meesho case study

If you want to earn with Meesho first you need to have download the app Meesho then register as a new reseller.

  1. firstly you need to Download the Meesho app
  2. Register yourself as a new reseller with your contact number. You don’t have to give any detail putting your Gmail or so far.
  3. After that, you will find many categories like menswear, womenswear, home decor, or lots of categories that you can go for either you can choose all the products like a catalogue of products.
  4. Then send the Product/Product catalogue link to your Whatsapp group. For Ex – if you have a women group on WhatsApp, you have to select the women’s Kurti and send them to the women’s Whatsapp group, or if you want to share on another social platform, you can share it through the share button.
  5. Once you receive your first order, you have to put that particular clothing item in the cart; then you have to select the size, colour all the details related to the products, so make sure whenever you take your order, please ask the size for the specification also take the address, Payment way and place the order.

What you are earning out of this

So, you need to decide your profit margin out of this total the price of the product.

For example, the product is for Rs.598 + 70 are the shipping charges, so 668 will be the total cost of the product. Now, you can add your profit margin according to your customer. You need to do this process before sending the link to the product to the customer. If the order has been completed, then you will receive our profit margin money within 10 days.

If you are earning Rs. 200 margins from selling1 one product, imagine if you start selling 10 products in a day, then your profit margin will be Rs 2000.

In Conclusion. Also, read these case studies

Frequent Answer & Questions on Meesho Business model

Who is the founder of Meesho

Vidit Aatrey and Sanjeev Bansal was the founder the Meesho in Dec 2015. Vidit Aatrey is the CEO of India’s largest reselling platform called Meesho. He completed his graduation from IIT Delhi(Indian Institute of Technology) in electrical engineering.

How to earn with Meesho

1- Step – firstly, you need to Download the Meesho app
2- Step – Register yourself as a new reseller with your contact number. You don’t have to give any detail putting your Gmail or so far.
3- Step 3 After that, you will find many categories like menswear, womenswear, home decor, or there are lots of categories that you can go for either you can choose all the products like a catalog of products.
3- Step Then send the Product/Product catalog link in your Whatsapp group. For Ex – if you have a women group on WhatsApp, you have to select the women’s Kurti and send them to the women’s Whatsapp group, or if you want to share on another social platform, you can share it through share

Is Meesho profitable or not

In the financial year, 2018-19 Meesho expences approx Rs.185.30 crore, but the company generated only Rs 84.8 Crore and incurred a loss of Rs. 100 crore. Meesho incurred 91% of their expenditure in Providing free shipping and Running Advertisement, and this is the biggest reason why Meesho is India’s no.1 reselling platform.

What is the Net worth of Meesho

Meesho has been funded 9 times with a total of $515.2M. Meesho’s latest round of funding came on April 5, 2021, in a series “E” round of funding. Currently, the Meesho Business Model has 2 million active sellers and the SoftBank Vision Fund has invested $300 million into it, valuing the company at approximately $2.2 billion.

Full form of Meesho

Simply Meesho means meri shop, and this whole Meesho Business model is started with a straightforward objective. Meesho founder Vidit Aatrey wanted to give a shop to people who found it too difficult to start a business.


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