whereas many of the attention paid to India’s e-commerce increase makes a speciality of large players like Flipkart, there’s an additional quickly-growing sector: people, broadly speaking women, who resell items on social media. a number of startups now exist to serve the so-called “housewife reseller” market. certainly one of them, Y Combinator alum Meesho, announced today that it has raised a $ 3.four million collection A led by using SAIF partners.
old backers assignment motorway, Y Combinator and several angel investors also lower back for the round, which brings Meesho’s complete funding to $ three.7 million up to now. The Bangalore-based startup plans to hire more americans for its tech and enterprise operations groups and launch new product categories.
TechCrunch first coated Meesho in August 2016 when it took part in Y Combinator’s startup accelerator software. for the reason that then, Meesho “has advanced from only a device to sell socially for resellers to a full-stack community for resellers,” its founders Vidit Aatrey and Sanjeev Barnwal mentioned in an email. This potential it now helps resellers address logistics, funds and product sourcing. Aatrey and Barnwal say these services are what differentiate Meesho from other these days 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 pick what they wish to sell to their WhatsApp, fb and Instagram followers by searching Meesho’s market (essentially the most well-known classes are fashion, subculture, home and kitchen elements). Most gadgets are dropshipped to buyers, so resellers don’t must hold their personal stock. Meesho monetizes through taking a seven to 15 % fee from suppliers for every transaction, counting on product class.
The enterprise says there are actually three million resellers in India and that the market has frequently sprung up over the remaining four years thanks to starting to be smartphone adoption. The variety of resellers is anticipated to grow six to eight instances over the next five years. Meesho cites a file by administration consulting company Zinnov that says gross sales are expected to boost from $ eight billion ultimate yr to $ 50 billion via 2022, with regular resellers making about 20,000 to 25,000 Indian rupees (about $ 310 to $ 386) per month.
In an announcement, SAIF partners managing director Mukul Arora mentioned “we’re in reality excited about Meesho’s mission of constructing a brand new distribution channel for small/mid-sized manufacturers, and helping resellers develop their business. this is a extremely India-particular opportunity with amazing tail winds, and has advantage to exchange how long tail products are offered in India. we’re basically impressed via Vidit and Sanjeev’s depth of understanding of this market, and are thrilled to partner with them on this journey.”
Featured photo: jayk7/Getty photos
Fundings & Exits – TechCrunch