Reseller and social commerce major Meesho is back in the game of hunting for funds. The startup, which claims to be India’s no 1 reseller app, is reportedly negotiating to raise more than $100 Mn in the upcoming funding round.
Various news reports, citing several sources, claim that all existing investors will participate in this round. As of now, there are no hints about new investors coming on the board of the company.
Reports further claim that Naspers is most likely to spearhead the round. Existing investors including Facebook and Elevation Capital (previously known as Saif Partners) will also reportedly pitch in.
To know about Facebook’s investment in Meesho and what made the investment so historic, click here.
To know about Saif Partners’ recent rebranding exercise and exit of its MD Alok Goel, click here.
While the funding talks have already created a buzz around Meesho, there is just as much buzz around the market valuation that the startup is likely to command in this round. Sources claim that the Bengaluru based company is aiming for an eye-popping valuation of $1.3 Bn -$1.5 Bn.
If the investors do agree to the above valuation then Meesho will become the first social commerce company to breach the billion-dollar valuation.
Sources claim that Meesho clocked an impressive growth in its sales and GMV during the nationwide lockdown and is therefore pretty buoyant that it will soon become a unicorn company.
Please note that the above chart & data has been sourced from a recent report prepared by Bain & Company and Sequoia.
Who are Meesho’s Top Competitors?
- Shop 101
Challenges faced by Social Commerce Sector
- Social commerce sectors is witnessing high traction among Tier 2 and 3 city consumers but adoption is still lower among more affluent and urban consumers.
- Despite having the second highest internet users globally, only 8% of Indians (roughly 100 Mn) shop for online products.
- Lack of trust and trust deficit is still a big factor that is hindering the growth of social as well e-commerce industry in India.
As is clearly indicated from the above chart, the penetration of online shopping in India is still very low.