Meesho, the Bangalore based e-commerce start-up, has secured $275 million in a recent funding round, as revealed in a securities filing.
Meesho, a social commerce platform, is reportedly being valued at around $3.9 billion in this funding round, according to individuals close to the negotiations who wished to remain anonymous due to ongoing discussions.
The start-up in the securities filing revealed that it has amassed over $1.2 billion in total funding so far and was valued at $4.9 billion during its last fundraising in September 2021.
Within India, Meesho boasts approximately 150 million transacting users.
Sources familiar with the matter informed TechCrunch that the new funding constitutes part of a larger financing round, expected to encompass secondary transactions, and could soar to over $500 million.
Meesho has attracted interest from investors like WestBridge Capital and Norwest Venture Partners. WestBridge acquired Meesho shares from early backer Venture Highway last year.
The company's notable backers include Meta, Fidelity, Peak XV, Prosus Ventures, B Capital, and SoftBank.
Meesho has a run-rate GMV exceeding $5 billion, as estimated by analysts at Bernstein, a global asset management firm, earlier this year.
Meesho has garnered attention from budget-conscious Indian consumers due to its competitively priced and varied selection of unbranded products. The start-up's value proposition seems to strike a chord with low- to mid-income shoppers, who constitute the majority of India's consumer base.
While traditional e-commerce platforms in India typically target affluent consumers and branded suppliers, resulting in higher average order values (AOVs) exceeding ₹1,000 (about $12), Meesho's AOV remains notably lower, usually below ₹350.
"Meesho’s algorithm prioritises listings by taking into account multiple factors including seller rating, product rating, customer reviews, customers' past shopping behaviour, popularity of the product, etc. Hence, pricing also influences the discoverability of a product listing on the marketplace," Jefferies analysts, the investment banking and capital markets firm, wrote.
"Meesho’s fulfilment charges are much lower than peers which allows the platform to offer lower prices to customer vs. competition. In order to drive costs lower, Meesho follows an asset-light model and outsources the delivery. Meesho has nearly half the share of India’s annual 3PL e-logistics shipment," the Jefferies note read.
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