Indian social commerce platform Meesho secures $275M in funding with 150M transacting users

Meesho, a popular e-commerce startup in India, has just secured a whopping $275 million in a new funding round, according to a recent securities filing. This funding is part of a larger round that could balloon to over $500 million, sources familiar with the matter told TechCrunch.

The Bengaluru-based startup, known for its social commerce platform, is now being valued at around $3.9 billion in this round, a slight decrease from its previous valuation of $4.9 billion in September 2021. Investors like WestBridge Capital and Norwest Venture Partners have been eager to get in on the action, with WestBridge even acquiring shares from an early backer last year.

Meesho has quickly become one of the fastest-growing e-commerce startups in India, with a run-rate GMV exceeding $5 billion, as estimated by Bernstein analysts. The company’s success can be attributed to its attractively priced, diverse, and unbranded assortment of goods, which has resonated well with value-conscious Indian consumers.

With over 440,000 annual transacting sellers and 120 million listings, Meesho offers one of the widest assortments of goods in the Indian market, catering to a wide range of preferences. The company’s algorithm prioritizes listings based on various factors, including pricing, seller and product ratings, and customer reviews.

Despite its success, Meesho faces increasing competition, with Amazon India recently launching Bazaar, a special store featuring affordable fashion and lifestyle products. However, with its unique value proposition and focus on low to mid-income customers, Meesho continues to stand out in the crowded e-commerce landscape in India.