Meesho raises $300 million from SoftBank Vision Fund as valuation races past $2 billion

Facebook-backed Meesho has raised $300 million in a brand new spherical of funding led by SoftBank Vision Fund 2, catapulting the social commerce startup valuation to $2.1 billion.

ET first
reported the details of the deal on February 13.

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The firm’s newest capital elevating train has virtually trebled its valuation in comparison with when it
raised $125 million in 2019. At the time Meesho was valued at round $700 million. This makes it the fourth home startup this yr to enter the coveted unicorn membership, comprising personal companies valued at $1 billion or extra. Other which have joined the highest league in 2021 embody insurance coverage tech platform Digit, Innovaccer, a well being tech platform and, a web based market for development materials.

Meesho’s financing spherical additionally noticed participation from present traders Prosus Ventures, Facebook, Shunwei Capital, Venture Highway and Knollwood Investment, the corporate stated in an announcement on Monday.

“We are focused on expanding our vision from focusing on enabling aspiring women entrepreneurs to creating Meesho as a single ecosystem that will enable all small businesses to succeed online,” stated Vidit Aatrey, founder and CEO at Meesho. “In the last one year, we have seen tremendous growth across small businesses and entrepreneurs seeking to move their businesses online.”

Meesho stated it goals to allow 100 million small companies and entrepreneurs digitise their companies as it expands the scope of its enterprise, whereas investing closely in hiring and rising its staff throughout know-how, product and enterprise capabilities amongst others.

By getting into the house to digitise and repair India’s SMBs, Meesho will go up in opposition to giants such as Reliance Industries, Amazon, Flipkart and others who’re vying for a bit of this profitable, untapped market. While these companies are eyeing income by eradicating layers of inefficiency in distribution, additionally they wish to use small companies to succeed in clients, particularly in smaller cities.

On the opposite hand, Meesho can be going through rising competitors from newer entrants within the social commerce house like Dealshare, Glowroad, Shop101 and Kiko TV, all of whom assist sellers attain clients by way of social networks whereas placing them in contact with suppliers and offering different providers required for e-tailing in India.

“We have been closely tracking Meesho for the last 18 months and have been impressed by their growth, daily engagement metrics, focus on unit economics and ability to create a strong team. We believe Meesho provides an efficient platform for SME suppliers and social resellers to onboard the e-commerce revolution in India and help them provide personalized experience to consumers,” stated Sumer Juneja, accomplice at SoftBank Investment Advisers.

Meesho claims that it has enabled 13 million entrepreneurs being promoting on-line by way of its platform and has a base of 32 million clients within the nation. It added that it has onboarded over 65,000 suppliers that promote greater than 5 million merchandise, and has generated Rs 500 crore in earnings for entrepreneurs utilizing its platform.

Munish Varma, managing accomplice at SoftBank Investment Advisers, stated, “By utilizing the ability of synthetic intelligence and machine studying, Meesho has created a platform for a lot of small enterprise homeowners to promote to the subsequent cohort of web customers. We stay up for being part of this journey.

The firm added that it has delivered orders to 26,000 pin codes in additional than 4800 cities, with an amazing majority of these being Tier II cities.

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