Prosus, Facebook And SoftBank Were Part Of The Round
Meesho's valuation has more than doubled in less than six months to $ 4.9 billion, as a rising number of high-profile investors back the Indian social commerce business, which is growing rapidly despite the pandemic.
The Bangalore-based business announced on Thursday that it received $570 million in its Series F fundraising round, after a $300 million Series E financing transaction in April at a valuation of $2.1 billion. The latest fundraising round was spearheaded by Fidelity and B Capital Group, increasing the startup's total funding to over $1 billion. Prosus Ventures, SoftBank Vision Fund 2, Facebook, and Good Capital were also part of the fresh round.
eCommerce Through Social Media
On social media sites including WhatsApp, Facebook and Instagram, Meesho maintains a three-sided marketplace that links suppliers (manufacturers and distributors) and resellers with buyers. When resellers sell to clients, they buy listed items from suppliers and earn a commission on each transaction.
“Our mission has been to democratize internet commerce for everyone, including consumers, our Meesho entrepreneurs and small businesses. And I think that’s our space: we will continue to focus on small businesses and on the demand side, we will continue to focus on the next billion customers.” Meesho Co-Founder by Manish Singh for TechCrunch
Taking On India
Meesho entered the grocery market earlier this year and the company is making rapid progress. The firm intends to use the new funds to expand its research and development activities, as well as to triple its staff size in the next 18 months. It has set a lofty target of reaching 100 million registered users by the end of the year.
The stakes are high in the world's second-largest internet market, where e-commerce has hardly registered a dent in overall retail. By 2025, the social commerce industry alone is estimated to be valued at around $20 billion, up from $1 billion to $1.5 billion last year.
- We're closely tracking the Indian market which is seeing a considerable uptick in tech-activity in recent years
- We have exposure to the Indian market through our stake in Prosus and are looking for new targets in India
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