30
September
2021
|
08:30
Europe/Amsterdam

Meesho raises US$570 million in Series F funding from Fidelity Management and Research Company and B Capital Group

Meesho raises US$570 million in Series F funding from Fidelity Management & Research Company and B Capital Group

  • Records 2.5x order volume growth since its last round of funding in April 2021
  • Aims to reach 100 million monthly transacting users by December 2022
  • Plans to grow tech and product talent by 2.5x to achieve its mission of democratizing internet commerce for everyone
  • Valuation more than doubles to USD 4.9 billion in less than five months

Bangalore, September 30, 2021: Meesho, India’s fastest growing internet commerce platform, today, announced its latest round of funding of USD 570 Million led by Fidelity Management & Research Company and B Capital Group. Existing investors Prosus Ventures, SoftBank Vision Fund 2 and Facebook also participated in this round. Other new investors include Footpath Ventures, Trifecta Capital, Good Capital and others. Following the raise, the company’s valuation has more than doubled to $4.9 billion in less than five months.

India’s unorganized retail sector, estimated to be USD $792 billion is set for the next wave of growth, with digitization enabling rapid expansion and greater reach across the country. With a vision to enable 100 million small businesses, including individual entrepreneurs, to succeed online, Meesho is democratizing internet commerce by bringing a range of products and new customers online. What started as a reseller-focused platform enabling millions to sell online, has now become a single ecosystem connecting sellers to consumers and entrepreneurs.

In just five months since the last round of funding, Meesho recorded 2.5x growth in order volume and added a range of new product categories to its roster including sports and fitness, pet supplies, and automotive accessories. The company intends to go deeper into India’s underserved markets, becoming the preferred e-commerce destination for the next billion users in the country.

With an aim to reach 100 million monthly transacting users by December 2022, Meesho expects to utilize the fresh round of funding to grow its technology and product talent by 2.5x, increase its roster to 50+ million products, and become the platform of choice for customers, entrepreneurs, and sellers from all corners of India. Meesho is also looking to expand its groceries and FMCG offerings with Farmiso (Meesho Grocery), its community group buying business to 200+ cities. By making online grocery shopping affordable for first-time users across India’s Tier 2+ markets, the company is enabling them to shop from a wide selection of groceries at ticket sizes as low as USD 1-2.

Vidit Aatrey, Founder & CEO, Meesho said, “The next wave of growth in India’s digital consumerism will undoubtedly come from *Bharat. We’ve always focused our efforts on enabling entrepreneurs from Tier 2+ markets to expand their business and in turn uplift small economic pockets in the country. The new round brings us a step closer to realizing our mission to democratize internet commerce for all, increase regional participation in the digital economy, and add momentum to local businesses. The participation of Fidelity Management & Research Company and B Capital Group is a big vote of confidence in our efforts. We will continue to invest in talent to build best-in-class tech and product solutions, while focusing on growth and furthering our efforts in scaling our online grocery business, Farmiso. I am confident we will continue to chart new milestones as we enable online success for every Indian business.”

The company is invested in providing entrepreneurs and consumers equity in ecommerce by reducing entry barriers, improving logistical infrastructure for Tier 2+ markets and fuelling discoverability of hyperlocal businesses and products. With industry-first initiatives like 0% commission, sellers can now earn better profit margins and grow their business, while providing individual entrepreneurs and consumers access to locally sourced products at lowest prices.

“We have evaluated e-commerce opportunities across emerging markets and are excited about Meesho’s focus on strong unit economics and a consumer-first approach. We are excited to partner with Meesho and its exceptional team that is democratizing e-commerce for a billion internet users across the country. Meesho’s business model has an incredibly compelling value proposition with entrepreneurs, end customers, and suppliers consolidating on one platform. It has rapidly emerged as a leading player in this space. Meesho is now enabling 100 million SMBs across tier 2+ cities, empowering them to sell online, leveraging its digital commerce platform,” said Kabir Narang, Founding General Partner at B Capital Group.

Boilerplate

About Meesho:

Meesho is India’s fastest growing internet commerce platform. With a vision to enable 100 million small businesses, including individual entrepreneurs, to succeed online, Meesho is democratizing internet commerce and bringing a range of products and new customers online. The Meesho marketplace provides small businesses, which includes SMBs, MSMEs and individual entrepreneurs, access to millions of customers, selection from over 700+ categories, pan-India logistics, payment services and customer support capabilities to efficiently run their businesses on the Meesho ecosystem.

About B Capital:

B Capital Group is a multi-stage, international investment firm founded in 2015 by Raj Ganguly, Eduardo Saverin, Howard Morgan, and Kabir Narang. B Capital invests in companies transforming large traditional industries across borders and geographies. Leveraging a global team of seasoned experts and a strategic partnership with BCG, B Capital helps founders navigate business challenges, raise capital, and attract talented leadership at every stage of the startup lifecycle. B Capital invests in enterprise technology (e.g., consumer enablement technologies, enterprise application software, infrastructure, security, AI/ML), fintech and insurtech, industrial and transportation, and healthcare tech and Bio IT. The B Capital portfolio includes global, industry-leading companies like Icertis, Innovaccer,Pharmeasy, Aetion, Atomwise, Bounce, Centivo, Carro, Dailyhunt, DataRobot, Evidation Health, FalconX, Kopi Kenangan, Ninja Van, Notable Labs, Payfazz, Synack, Ula, and YaloChat, XingYun. For more information, visit http://www.bcapgroup.com/.

About Prosus

Prosus is a global consumer internet group and one of the largest technology investors in the world. Operating and investing globally in markets with long-term growth potential, Prosus builds leading consumer internet companies that empower people and enrich communities. 

The group is focused on building meaningful businesses in the online classifieds, food delivery, payments and fintech, and education technology sectors in markets including India, Russia, and Brazil. Through its ventures team, Prosus invests in areas including health, logistics, blockchain, and social commerce. Prosus actively seeks new opportunities to partner with exceptional entrepreneurs who are using technology to improve people’s everyday lives.

Every day, millions of people use the products and services of companies that Prosus has invested in, acquired or built, including 99minutos, Avito, Brainly, BUX, BYJU'S, Bykea, Codecademy, DappRadar, DeHaat, dott, ElasticRun, eMAG, Eruditus, Flink, GoodHabitz, Honor, iFood, Klar, LazyPay, letgo, Meesho, Movile, Oda, OLX, PayU, Quick Ride, Red Dot Payment, Remitly, Republic, Shipper, SimilarWeb, Skillsoft, SoloLearn, Swiggy, Udemy, Urban Company and Wolt.

Hundreds of millions of people have made the platforms of Prosus’s associates a part of their daily lives. For listed companies where we have an interest, please see: Tencent, Mail.ru, Trip.com Group Limited, and DeliveryHero.

Today, Prosus companies and associates help improve the lives of more than 2 billion users globally. 

Prosus has a primary listing on Euronext Amsterdam (AEX:PRX) and secondary listings on the Johannesburg Stock Exchange (XJSE:PRX) and a2X Markets (PRX.AJ). Prosus is majority-owned by Naspers.

For more information, please visit www.prosus.com.

About Prosus

Prosus is a global consumer internet group and one of the largest technology investors in the world. Operating and investing globally in markets with long-term growth potential, Prosus builds leading consumer internet companies that empower people and enrich communities.

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