Meesho, a Bengaluru-based company, is the industry leader in the burgeoning social-commerce sector. The popular messaging service WhatsApp from Meta Platforms Inc., Facebook, Instagram, and other social media platforms enables users to trade things.
Despite investing billions of dollars in the world’s largest untapped digital market, U.S. retail giants are facing fierce competition from an upstart e-commerce business that is attracting more customers than Amazon.com Inc. and Walmart Inc.’s Flipkart.
About Meesho App
Meesho, a marketplace for internet sellers, probably doesn’t need an introduction. Due to ease of use and low cost, it has created a market for itself and garnered popularity. Meesho offers affordable, quick, and secure delivery and returns. More than 2.6 million resellers in India trust Meesho.
The Bangalore-based business aims to create a setting where anyone can start a business without spending money. The company advertises having more than 20,000 Meesho suppliers from more than 500 different locations and more than 2 million resellers.
Meesho has a commission structure where sellers can make money by tying a gross margin to every transaction. Meesho, the biggest resale website in India, Meesho was established in 2015. Most connections between manufacturers and distributors take place via the Meesho app.
According to app analytics company Apptopia, Meesho was the most downloaded shopping app globally during the first half of this year, with users praising its usability, variety of products, and affordable prices. Amazon and Flipkart received 81 million and 50 million downloads within the same period.
What Makes the Meesho Shopping App the Winner in the Race Against Amazon and Walmart in India?
Meesho still has a way to go before it catches up to Amazon and Walmart, which have collectively invested more than $22 billion in India since 2014. According to research from the American investment firm AllianceBernstein, each generates over $20 billion in annual online sales in India, accounting for almost 60% of the country’s online sales. The $5 billion, or 7% of all sales in India, that Meesho is in charge of.
American businesses entered India eager to capitalize on the hundreds of millions of people who were getting online for the first time there, even though internet commerce there has expanded more slowly than in other significant nations. Just 5% of retail purchases are still made through e-commerce, which is far less than the 14% global average.
According to Mr. Bansal, Meesho aims to dominate the market for essential commodities like apparel and home items frequently offered in unorganized retail, making up as much as 85% of India’s retail market. He claimed that the company caters to the throngs of people who used to shop at corner stores but are now turning to the internet.
Meesho was founded in 2015 and has raised $1.1 billion from investors, including Meta, the Vision Fund of SoftBank Group Corporation, Sequoia Capital India, and Eduardo Saverin’s venture capital firm B Capital Group. It also intends to try to go public. It is worth $5 billion.