Whereas a lot of the consideration paid to India’s e-commerce growth focuses on large gamers like Flipkart, there’s one other fast-growing sector: folks, principally ladies, who resell gadgets on social media. A number of startups now exist to serve the so-called “housewife reseller” market. Considered one of them, Y Combinator alum Meesho, introduced as we speak that it has raised a $three.four million Sequence A led by SAIF Companions.
Earlier backers Enterprise Freeway, Y Combinator and several other angel traders additionally returned for the spherical, which brings Meesho’s whole funding to $three.7 million thus far. The Bangalore-based startup plans to rent extra folks for its tech and enterprise operations groups and launch new product classes.
TechCrunch first coated Meesho in August 2016 when it took half in Y Combinator’s startup accelerator program. Since then, Meesho “has advanced from only a software to promote socially for resellers to a full-stack community for resellers,” its founders Vidit Aatrey and Sanjeev Barnwal mentioned in an electronic mail. This implies it now helps resellers deal with logistics, funds and product sourcing. Aatrey and Barnwal say these providers are what differentiate Meesho from different just lately funded social commerce startups in India like Glowroad and Shopmatic.
Meesho claims that 1,000 suppliers and 20,000 resellers now use its platform. Resellers decide what they need to promote to their WhatsApp, Fb and Instagram followers by shopping Meesho’s market (the most well-liked classes are vogue, way of life, residence and kitchen provides). Most gadgets are dropshipped to consumers, so resellers don’t have to keep up their very own stock. Meesho monetizes by taking a seven to 15 p.c fee from suppliers for each transaction, relying on product class.
The corporate says there are actually three million resellers in India and that the market has principally sprung up over the past 4 years due to rising smartphone adoption. The variety of resellers is anticipated to develop six to eight instances over the following 5 years. Meesho cites a report by administration consulting agency Zinnov that claims product sales are anticipated to extend from $eight billion final 12 months to $50 billion by 2022, with typical resellers making about 20,000 to 25,000 Indian rupees (about $310 to $386) per thirty days.
In an announcement, SAIF companions managing director Mukul Arora mentioned “We’re actually enthusiastic about Meesho’s mission of constructing a brand new distribution channel for small/mid-sized manufacturers, and serving to resellers develop their enterprise. It is a very India-specific alternative with sturdy tail winds, and has potential to alter how lengthy tail merchandise are bought in India. We’re actually impressed by Vidit and Sanjeev’s depth of understanding of this market, and are thrilled to companion with them on this journey.”
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