Y Combinator backed Meesho announced the close of a $3.4 million Series A round of funding led by SAIF Partners. Existing investors Venture Highway, Y Combinator and other angel investors also participated in the round.
Focused on disrupting retail with an innovative distribution channel for small/ mid-sized brands, Meesho will utilize this fresh raise to accelerate hiring in technology, product and business operations & to add more product categories to the platform.
Meesho resellers promote & sell products, sourced from Meesho’s curated supply marketplace, within their social network on WhatsApp, Facebook and Instagram. Meesho has empowered more than 20,000 housewives to become online professionals, who earn income by selling products across fashion, lifestyle, home & kitchen categories.
Vidit Aatrey, Co-Founder & CEO, Meesho commented, “Online reseller market in India has grown to 3M resellers from almost nothing in the last four years on the back of strong smartphone adoption and is expected to grow 6-8X in the next 5 years. We understand this market well and have scaled very fast on the back of a product that enables housewives to not just earn income to support her family but also respect and confidence. With this round of funding, we will hire the right talent across tech and business to chart our next phase of growth ”
Mukul Arora, Managing Director, SAIF Partners, said, “We are really excited about Meesho’s mission of building a new distribution channel for small/mid sized brands, and helping resellers grow their business. This is a very India-specific opportunity with strong tail winds, and has potential to change how long tail products are sold in India. We are really impressed by Vidit and Sanjeev’s depth of understanding of this market, and are thrilled to partner with them on this journey.”
According to a report by Zinnov Consulting, Housewives resellers registered $8B in gross sales across WhatsApp and Facebook last year and is expected to grow to $50B by 2022. A typical reseller earns INR 20,000 – 25,000 per month by selling products across apparel and lifestyle.