Credits : Startup Talky
Meesho was founded by Sanjeev Barnwal and Vidit Aatrey . Meesho connects small businesses to consumers, enabling them to sell products to a wider audience, it aims to democratize internet commerce by bringing a range of products and new customers online. Meesho was earlier named Fashnear but was renamed to Meesho after remodeling the business during 2015s. Meesho comes with the word meri — shop. Meesho got seed funding of $120,000 in 2016 after being selected to a program by Y Combinator. The main idea of Meesho was to give people running small and personal businesses access to a wider audience aiding them with logistics, payment, etc, and other tools to help them run business. Later, in Nov 2018 it bagged another funding of 50mn from DST Partners & others.
What does Meesho Do
Meesho offers a variety of services. The most basic form of service Meesho offers is Connecting small-scale businesses to a wider customer base. Meesho also offers Reselling, it has become a leading reselling platform. resellers can browse through the Meesho app, select products they want to sell, and then share those products with their network through various social media platforms like WhatsApp, Facebook, and Instagram. Meesho also launched Meesho SuperStore on April 6, 2022, The main motive of Meesho SuperStore was to sell everyday objects in tier 2 cities ( Farmiso was renamed to Meesho SuperStore on April 6, 2022).
Meesho Business model
Meesho has partnerships with suppliers and manufacturers to source products like clothing, accessories, and electronics. These suppliers offer products at wholesale prices to Meesho. On the reselling front, Resellers gain access to products sourced from suppliers. They can browse through this catalog, select products they want to sell, and set their selling prices, and resell their products. Meesho handles order processing, packaging, and delivery to the consumer. They manage inventory with their own set of warehouses. Meesho offers both D2C and B2B services.
How does Meesho Earn Money ( Revenue Model )
Meesho has several revenue streams, The major source of its revenue is commissions. If a product is charged 400 on the Meesho platform some proportion of the it will go to Meesho as commissions. Meesho charges a commission to suppliers who list their products on the platform. The commission varies depending on the product category, price, and sales.
The second significant money source is Meesho’s own branded products. Meesho buys these products and sells them to retail at a sufficient margin, Just like Amazon Basics. Meesho also has other fees like Platform fees, Payment Processing fees, subscriptions, and data monetization. All of this made Meesho one of the first Profitable unicorns.
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