Why Meesho's Business Model is so successful?
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Meesho’s Company Overview
Meesho, founded in 2015 by Vidit Aatrey and Sanjeev Barnwal, is an Indian social commerce platform that empowers individuals, particularly women, to start and grow online businesses. Based in Bangalore, Meesho connects resellers and small businesses with suppliers to facilitate the sale of a diverse range of products through social media platforms like WhatsApp and Facebook. The platform focuses on creating opportunities for micro-entrepreneurs to leverage social networks for e-commerce, providing a user-friendly interface and logistical support.
Meesho is India's top reselling platform, used by more than 1 million resellers across India. Meesho is reimagining retail access in India using technology. Meesho is a social commerce platform enabling individuals and small businesses to start online stores. It has a network of more than 20,000 suppliers. The platform allows small businesses, home entrepreneurs, and individuals to scale their businesses by leveraging the power of the Internet to reach a wider audience. Meesho has raised $3.1 million in funding so far.
Meesho's business model revolves around a reseller-based model and commission fees. Meesho allows individuals to become resellers by selecting products from its platform, setting their selling prices, and promoting them within their social circles. When a sale occurs, Meesho earns a commission on the transaction. The platform also provides logistics and payment support, simplifying the selling process for resellers. Meesho's success lies in its ability to tap into its users' social connections, empowering them to earn income through e-commerce without the need for extensive upfront investments. This unique social commerce model has contributed to Meesho's rapid growth and role as a transformative force in the Indian e-commerce landscape.
Headquater: Bengaluru, Karnataka, India
Foundations date: 2015
Company Type: Private
Sector: Consumer Goods
Category: eCommerce
Digital Maturity: Fashionista
Meesho’s Related Competitors
Poshmark Business Model
Mercari Business Model
Faire Business Model
Meesho’s Business Model Canvas
- merchants
- resellers
- payment gateways
- advertisers
- investors
- Google Play
- social media
- Product development
- Product sourcing
- Marketing
- Customer service
- Logistics
- Community management
- Training
- IT Operations
- Platform maintenance
- Network of resellers
- Platform
- App
- Logistics
- Payment gateways
- Online-to-offline model
- Social commerce
- Machine learning algorithms
- Captive logistics
- A platform that enables Indian small businesses to sell online via social channels
- Meesho is India's #1 Reselling app
- A platform for resellers to turn social media into a powerful e-commerce channel
- Meesho is creating the next big e-commerce distribution channel via homepreneurs selling on WhatsApp
- Meesho is a platform that connects wholesale suppliers to a network of resellers through social media to sell a wide range of products
- Customer service
- Dedicated Relationship Manager
- Word-of-mouth
- Automated
- Self-service
- Women
- Housewives
- Students
- Individuals
- Small business owners
- Website
- Android app
- Social networks
- Word of mouth
- Training sessions
- Help Center
- Blog
- Product development
- IT infrastructure
- Platform maintenance
- Customer service
- Legal and regulatory
- Staff
- Marketing
- Office
- Commission-based revenue model
- Meesho charges a 15% commission on the total order value to the supplier
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Try it freeMeesho’s Revenue Model
Meesho makes money by combining different business models. Below, you will find the list of the different monetization strategies identified for this company:
- eCommerce
- Reseller
- Brokerage
- Discount club
- Customer data
- Exposure
- Featured listings
- Advertising
- Channel aggregation
- Niche retail
- Channel aggregation
- Cross-subsidiary
- Layer player
- Cash machine
- Digital
- Digital transformation
Meesho’s Case Study
Meesho's CASE STUDY
In the bustling heart of Bangalore, India, a remarkable story of entrepreneurship and innovation is unfolding, championed by two engineers with a mission to make a tangible social impact. Meesho, founded in 2015 by Vidit Aatrey and Sanjeev Barnwal, is not just another player in the competitive e-commerce landscape. It's a trailblazing social commerce platform that empowers individuals—especially women—to tap into the burgeoning digital marketplace. Today, we delve into Meesho's journey, exploring its unique business model, the factors contributing to its success, and the vast impact it has made on India's e-commerce scene. The Birth of an Innovative Platform From its inception, Meesho's mission has been remarkably clear: democratizing online commerce for everyone, with a special focus on enabling micro-entrepreneurs. The platform connects resellers and small businesses with a network of over 20,000 suppliers, offering a vast array of products to be marketed and sold through social networking sites like WhatsApp and Facebook. The Indian market presented both challenges and immense opportunities for Meesho. With an overwhelming majority of the population using social media and mobile phones as primary tools for communication, the founders recognized a gap: millions of would-be entrepreneurs lacked the resources and know-how to start and scale online businesses. This insight led to the creation of Meesho—an accessible, user-friendly platform that didn't just facilitate commerce but actively empowered users through community support and comprehensive training. According to a report by Deloitte, social commerce in India is expected to reach $16-20 billion by 2025, showcasing vast potential for platforms like Meesho (Deloitte, 2022). What Sets Meesho Apart What makes Meesho truly unique is its hyper-localized approach that acknowledges and leverages India's diverse social fabric. By focusing on social networks, Meesho enables resellers to capitalize on their personal relationships to build and expand their businesses. This is a dramatic shift from traditional e-commerce models that rely heavily on direct-to-consumer approaches. Additionally, Meesho's focus on women entrepreneurs sets it apart. Approximately 70% of Meesho's resellers are women. By providing a platform where homemakers, students, and small business owners can earn income without significant upfront investments, Meesho has turned social e-commerce into a tool for women's empowerment and financial independence. One study conducted by the Indian Institute of Management (IIM) Bangalore highlighted that women's participation in social commerce platforms like Meesho not only contributes to family income but also improves self-confidence and social status (IIM Bangalore, 2019). Operational Excellence and Technology Behind Meesho's user-friendly interface is a complex, well-oiled machine. The company's core activities include end-to-end product sourcing, logistics, marketing, customer service, and IT operations. Meesho leverages machine learning algorithms to optimize product recommendations and personalized user experiences, driving higher sales and better customer satisfaction. Moreover, the platform's logistics and payment support are pivotal in simplifying the selling process. By partnering with efficient payment gateways and reliable logistics providers, Meesho ensures that resellers can focus on sales without worrying about the intricacies of order fulfillment and payment collection. This operational focus dramatically reduces the barriers to entry for new entrepreneurs, creating an ecosystem where anyone with a smartphone can become a successful reseller. Financial Performance and Growth Since its foundation, Meesho has experienced meteoric growth. As of 2023, Meesho hosts over 1 million resellers across India, boasting an annual gross merchandise value (GMV) exceeding $1 billion. In terms of funding, Meesho has raised $3.1 million so far, with investors recognizing its transformative potential in the e-commerce landscape. According to Meesho's internal data, the average reseller earns approximately INR 25,000 ($340) per month, an impressive figure considering the side-hustle nature of many resellers' engagements (Meesho Reports, 2023). This revenue not only provides supplemental income for families but also significantly contributes to local economies, particularly in rural and semi-urban regions. Social Impact: Metrics of Success While financial metrics are crucial, Meesho's impact extends beyond the balance sheet, touching lives and transforming communities. The platform's role in creating affiliation and belonging for women entrepreneurs, combined with the emotional rewards of independence and self-confidence, makes Meesho a unique player in the social commerce field. According to the National Sample Survey (NSS), participation in platforms like Meesho has led to a 20% increase in women's participation in the workforce in some regions (NSS, 2022). These statistics reflect the broader social implications of Meesho's operations. Expert Opinions Industry experts have also recognized Meesho's unique value proposition. According to Srikanth Velamakanni, CEO of Fractal Analytics, "Meesho's model of leveraging social networks for e-commerce represents the next frontier in digital transformation. It's a great example of how technology can democratize opportunities and create large-scale social impact." Conclusion Meesho's journey from a fledgling start-up to India's leading social commerce platform is nothing short of inspirational. By creating a hyper-local, user-friendly platform that empowers entrepreneurs—particularly women—Meesho has redefined what it means to succeed in e-commerce. Its unique blend of technology, community, and empowerment provides a robust template for how digital innovation can drive meaningful social and economic change. As we look toward the future, Meesho's continued commitment to evolving its platform and expanding its reach promises to remain a cornerstone of its success. With a mission rooted in democratizing commerce, Meesho isn't just changing the way India shops; it's transforming the very fabric of Indian society.If you enjoyed this content, you’re in for a treat! 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