On April 5, 2021, Meesho made headlines by becoming the fifth startup to join the unicorn club. Following a $300 million funding round by SoftBank, Meesho’s valuation climbed to $2.1 billion. But this startup’s journey wasn’t without setbacks—marked by early failures and bold pivots. Its rise is more than just a funding milestone. It’s a testament to innovation, resilience, and a powerful vision to redesign social commerce in India.
Meesho- A Unique Business Model
Meesho’s distinctive business model makes it not just a regular online shopping platform but a digital marketplace that has revolutionized socio-commerce in India. This platform has simplified online reselling and made shopping both affordable and accessible.
The platform acts as an intermediary between manufacturers and independent resellers, which was quite uncommon in India previously, making it easy for anyone to start their own business with zero investment and earn income while sitting at home.
Here’s how the platform functions:
- Product Listing By Suppliers
Manufacturers list their products across categories like clothing, home decor, kitchenware, accessories, and cosmetics. Just upload the products to the Meesho app.
- Resellers Browse and Choose
Independent resellers (often individuals or small business owners) browse the app, select products they’d like to promote, and set their own profit margins.
- Promote Across Social Platforms
Resellers share chosen products directly with their network on platforms like WhatsApp, Facebook, and Instagram—either by posting pictures or messaging interested buyers.
- Order Locked In
Once a buyer confirms interest, the reseller places the order through the Meesho app, entering the customer’s address and preferred payment method, or a buyer can also place the order directly via app.
- Meesho Handles the Logistics
Meesho takes care of the logistics bit, including picking, packing, and shipping the product directly to the customer. Buyers can pay online or opt for cash on delivery.
Meesho’s Pivotal Journey to Fame
Not known to many, Meesho started off as FASHNEAR in its initial days, with a business model quite similar to the food delivery giants Zomato and Swiggy.
Founded in 2015, this Bengaluru-based startup bridged the gap between customers and local apparel and fashion accessory sellers. All customers had to do was place an order via the app where these sellers listed their products.
Meesho acted as the delivery partner and took care of the rest, picking up the products and delivering them right to the doorstep.
The founder duo, Sanjeev Barnwal and Vidit Aatrey, IIT Delhi graduates and ex Sony and InMobi employees told the story of their initial days, how they spent day and night in product cataloguing and delivery to their precious customers just to get feedback from them, pure inspiration!
But as the business started to flourish, it faced a major setback in receiving traction as buyers showed limited interest in buying from local shops. Also, the retailers and wholesalers were eager to expand their reach beyond their neighborhoods and tap into a national customer base by selling online, this was the time when B2C giants Amazon and Myntra were leading.
However, the founders took the challenge and worked towards reshaping their business model. They visited many manufacturers, shopkeepers, and resellers to understand their pain points in selling their products online; many had established Whatsapp groups, but the reach was limited, while the resellers were mostly women, who has no inventory and working from home, that’s where the winning idea came from.
By the end of 2015, FASHNEAR re-emerged as Meesho, meaning ‘My-Shop’. This low-risk model empowers millions across India to launch their digital storefronts—all from their smartphones.
Meesho has won the trust of millions with seamless payments, low-cost shipping, and hassle-free returns, it’s empowering both consumers and small retailers across the country.
The Business Impact
Meesho’s success isn’t just measured in numbers—it’s a powerful example of how technology and innovation can uplift individuals and communities. From empowering women to advancing rural development and digital inclusion, Meesho continues to reshape India’s social and economic fabric.
Meesho’s Funding Journey
Meesho’s journey exemplifies how innovation and inclusivity can transform lives, empowering millions across India to become entrepreneurs and shaping the future of digital commerce.
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