Sector: Social Commerce
Founded: 2015
Valuation: $4.9 billion (2021)

Overview: Meesho is a social commerce platform that enables small businesses, especially in Tier 2 and Tier 3 cities, to sell products via social channels like WhatsApp, Facebook, and Instagram. It focuses on empowering resellers, mostly women, to earn income through its platform. Meesho created a commission-free model to attract sellers, monetizing through services like logistics and payments.

Challenges encountered:

• Addressing the logistics and fulfilment needs of small businesses across remote parts of India.
• Difficulty in managing payments for a dispersed reseller network.
• Managing the high cost of customer acquisition through social media channels
• Cash flow issues due to delayed payments from resellers

Solutions Implemented:

• Cost Control: Suggested reducing reliance on paid digital marketing and focusing on organic growth strategies such as referral programs.
• Payment Gateway Optimization: Implemented more efficient payment gateways to accelerate payments from resellers and improve cash flow.
• Logistics Streamlining: Partnered with logistics firms to create optimized delivery routes, reducing shipping costs and delivery times.
• The startup raised over $570 million from SoftBank and Facebook, enabling it to rapidly expand its seller base and improve logistics infrastructure.

Outcomes Attained:

• Significant reduction in customer acquisition costs, improving profitability.
• Improved cash flow due to faster payment cycles, supporting expansion efforts.
• Better logistics management led to lower operational costs and higher customer satisfaction.