Meesho said on Monday that he raised $ 300 million in a new round of financing led by SoftBank Vision Fund 2 as the Indian social commerce startup works to become the “only ecosystem that will allow all small businesses to succeed online. “
The new round – an E Series – gives the five-year startup a valuation of $ 2.1 billion, up from about $ 600 million – $ 700 million in the 2019 D Series investment. The Indian startup, which raised about $ 490 million to date, said existing investors Facebook, Prosus Ventures, Shunwei Capital, Venture Highway and Knollwood Investment have also participated in the new round.
This deal appears to be Shunwei Capital’s first investment in an Indian startup in almost a year. New Delhi last year introduced a rule to require its approval before a Chinese investor could write a check to an Indian company.
Bangalore-based Meesho operates an online marketplace of the same name that connects sellers with customers on social media platforms such as WhatsApp, Facebook and Instagram. Its offerings include order management, logistics care, online payments, real-time store updates and allowing companies to get their customers to subscribe.
The startup claims to have a network of more than 13 million entrepreneurs, most of whom are women, more than 100,000 suppliers in about 5,000 Indian towns and cities that deal mainly with food, clothing, appliances and electronic items.
Meesho said he will use the new capital to help 100 million individuals and small businesses in the country sell online. “In the past year, we have seen tremendous growth in small businesses and entrepreneurs looking to move their businesses online,” said Vidit Aatrey, co-founder and chief executive of Meesho, in a statement.
Amid Covid, which prompted New Delhi to issue a month-long block, Meesho launched Farmiso, a product that allowed anyone to open an online grocery store without any investment. Aatrey said on Monday that Farmiso has emerged as Meesho’s fastest growing business. (Before the pandemic, Meesho also started to expand in Southeast Asia, but it has reduced these efforts in recent months.)
“We have been following Meesho closely for the past 18 months and have been impressed by its growth, metrics of daily engagement, focus on the unit’s economy and the ability to create a strong team. We believe that Meesho provides an efficient platform for SME suppliers and social resellers to embark on the e-commerce revolution in India and help them provide a personalized experience to consumers, ”said Sumer Juneja, partner at SoftBank Investment Advisers, in a statement .
In a recent report, UBS analysts identified social commerce and business-to-business markets as potential sources of competition for e-commerce companies like Amazon and Flipkart in India.
Details: Meesho
Social commerce is an important bet to face modern e-commerce, which has struggled to make inroads in India, despite the billions of dollars invested by Amazon and Flipkart. Another bet is to digitize neighborhood stores in the country – without much of the social element – that dot tens of thousands of towns, cities and villages in India. Global giants Facebook and Google are supporting the two horses.
“Globally, SoftBank has always endeavored to support founders who provide exclusive solutions for the local market. Using the power of artificial intelligence and machine learning, Meesho created a platform for many small business owners to sell to the next group of Internet users. We look forward to being part of that journey, ”said Munish Varma, managing partner of SoftBank Investment Advisers, in a statement.