Meesho in talks to raise funds from DST Global1 min read . Updated: 18 Sep 2018, 08:23 AM IST
Meesho hasn't finalised the amount of capital it wants to raise in the latest round but it could be around $30 million
Bengaluru/New Delhi: Less than three months after raising its last round of funds, Meesho, one of the fastest growing e-commerce companies in the country, has initiated talks to raise a fresh round of capital from investment company DST Global, two people familiar with the matter said.
The social commerce firm hasn’t finalised the amount of capital it wants to raise in the latest round but it could be around $30 million, the two people mentioned above said on condition of anonymity.
Meesha and DST Global did not respond to emails seeking comment.
Meesho last raised $11.5 million in a series-B round from Sequoia India, SAIF Partners, Y Combinator and Venture Highway. It has received a total of roughly $15 million in capital so far.
The Bengaluru-based company is one of few new e-commerce start-ups that have attracted investor interest after VC firms’ interest in e-commerce companies waned starting in late 2015.
Founded in 2015 by IIT-Delhi graduates Aatrey and Sanjeev Barnwal, Meesho operates as an online marketplace that connects resellers directly with raw material suppliers using social media services such as WhatsApp and Facebook and also connects individual sellers and small businesses with customers. A majority of the resellers are homemakers, small business owners, small boutique brands and those who sell art and craft, fashion wear, home and kitchen products.
Resellers create customised catalogues of products using Meesho’s mobile app. These catalogues can then be shared via WhatsApp and Facebook with potential customers or buyers.
While registering with Meesho, resellers also link their Facebook or Instagram business page with the platform. Meesho will automatically create an online store for the reseller after successful registration.
Buyers can log on to the Meesho app and discover catalogues posted by resellers and place orders within the app. Resellers also have an option to share URL links to their online store via WhatsApp, Facebook or Instagram and initiate a chat with the customer anytime. It also has tie-ups with external logistics companies to allow resellers to deliver products to customers.
The company claims to have more than 1 million resellers on its platform. For every transaction, a reseller makes a 10-20% commission.
Meesho is one of the social commerce start-ups, including Shop101 and Glowroad, that are trying to cater to the next set of internet users in the country.