Meesho Case Study Introduction
In the last decade, e-commerce has grown remarkably, with online platforms generating billions in monthly revenue globally. Among these, Meesho emerges as a prominent player in India’s e-commerce sector, attracting a staggering 120 million users monthly. The platform distinguishes itself by supporting small-scale entrepreneurs; approximately 80% of its sellers are small business proprietors, and 95% of the merchandise on offer is non-branded.
Meesho stands out as one of India’s first platforms to focus on empowering housewives to become entrepreneurs. It provides a pathway for them to launch their virtual storefronts without any initial investment or inventory. Beyond mere transactions, Meesho reigns as the premier reselling application in India, facilitating product sales within users’ networks.
In the Meesho case study, As of 2023, Meesho had achieved an impressive feat, becoming the fastest shopping application globally to surpass 500 million downloads across Google Play and the iOS App Store, a milestone reached within a mere six-year span, as reported by data.ai. With its unique approach and massive popularity, Meesho has etched its name into the annals of the e-commerce frame.
Join us as we dive into the captivating Meesho case study and explore its fascinating journey, business models, marketing strategies, and the key factors contributing to its success.
What is Meesho & Who are the co-founders?
Meesho case study tells that in 2015, two friends and IIT graduates from Delhi, Vidit Aatrey (Co-Founder and CEO) and Sanjeev Barnwal (Co-Founder and CTO), came together to create Meesho, which stands for ‘Meri Shop’ or ‘My Shop’. Their journey began when they worked at InMobi, where they spotted a gap in the social commerce world. They saw an opportunity to empower women and support small businesses, which sparked their idea for Meesho.
Headquartered in Bengaluru, Meesho started as Fashnear in 2015, focusing on fashion-related goods similar to how Zomato is for food and Blinkit (formerly Grofers) is for groceries. It connected local shops selling clothes and accessories with customers, allowing them to shop from nearby stores through the app.
However, they soon realized that there were some flaws in this model. Customers weren’t too keen on buying from local shops, and shop owners wanted to expand their sales beyond their locality. That led Vidit and Sanjeev to rethink their approach.
In the Meesho case study, by the end of 2015, Fashnear underwent a remarkable transformation, emerging as Meesho with an enhanced and innovative business model. Instead of just connecting customers to local shops, Meesho became a platform for anyone to start their online store, selling products to customers nationwide.
What is the business model of Meesho?
Meesho’s way of doing business isn’t too different from the direct-to-consumer (D2C) model. Unlike D2C, where producers sell straight to customers, Meesho operates more in a business-to-business (B2B) setup.
Meesho case study illustrates that it utilizes an innovative social commerce framework that empowers resellers to market products via social networking channels.
Here’s a summary of how it works:
• Reseller-Centric Approach :– In Meesho’s world, resellers act as a bridge that connects suppliers with customers. They’re the ones who help the business grow fast by using their social circles on platforms like WhatsApp, Facebook, and Instagram to promote and sell products. Many individuals, including homemakers and small business owners, rely on the Meesho app to discover and sell products from various manufacturers.
• Zero Inventory :- Meesho is all about empowering resellers to kick-start their online business without needing any money upfront or having to stock inventory. They give resellers all the tools, training, and support they need to succeed.
• Wide Reach :– Meesho is making waves by establishing its footprint across more than 1,000 cities. With a strategic focus on Tier 2, 3, and 4 cities, Meesho is not just expanding its reach but also connecting with a broader audience. This approach unlocks opportunities for a wide range of potential customers, especially in areas where shopping choices might be limited. In doing so, Meesho is creating valuable shopping opportunities for millions, enhancing their purchasing experience with a diverse selection and convenient options.
• Logistics & Payments :– Meesho makes online selling easier by handling delivery and payment arrangements. They ensure the product reaches the buyer directly and the seller’s earnings are promptly credited. This seamless operation saves time for the sellers and provides a reliable shopping experience for customers. By streamlining these essential services, Meesho empowers sellers to focus on growing their businesses and maximizing profits.
How does Meesho earn money?
Meesho case study shows that Meesho mainly makes money through a commission system.
Here’s a brief overview:
• Commission on Sales :– Meesho charges sellers a commission for each sale made on the platform. The commission rate varies between 10% to 20%, depending on factors like the type and price of the product.
• Dropshipping Model :- Meesho operates on a dropshipping model, where resellers promote products to their friends and followers, and when someone buys, the reseller places the order on their behalf. Meesho takes care of the delivery and gives the reseller their share of the profit.
• Value-Added Services :- Meesho also makes money by offering extra services like advertising and helping sellers with logistics. That empowers sellers to boost their sales and manage their businesses more effectively.
In the Meesho case study, according to financial results published on the company’s blog, Meesho’s operating revenue soared by a whopping 77% year-on-year to Rs 5,735 crore in FY23 from Rs 3,240 crore in FY22. Furthermore, they successfully decreased their losses by 48% in FY23, bringing it down to Rs 1,675 crore from Rs 3,248 crore in FY22.
Who funded & Who are the top investors in Meesho?
Meesho case study explores that Meesho has raised $1.06 billion in funding across ten rounds. Its 28 institutional investors include big names like Facebook, Y Combinator, and Fidelity Investments. Moreover, it has some notable angel investors like Chris Workman and six others.
Funding data as follows :
May 2016: Angel investment, $350K from Chris Workman.
Jul 2016: Seed Round, $120K from Y Combinator.
Aug 2016: Seed Round, Undisclosed funding from Venture Highway, Chris Workman, Maninder Gulati, Jaspreet Bindra, Abhishek Jain, Kashyap Deorah.
Oct 2017: Series A Round, $3.44M from Elevation Capital, Y Combinator, Venture Highway.
Jun 2018: Series B Round, $11.5M from Peak XV Partners, Y Combinator, Venture Highway, Maninder Gulati, Jaspreet Bindra, Abhishek Jain, Chris Workman, Kashyap Deorah, Elevation Capital.
Nov 2018: Series C Round, $50M from RPS Ventures, Shunwei Capital, Y Combinator, Venture Highway, Yuri Milner, Elevation Capital, DST Partners, Peak XV Partners.
Jun 2019: Series D Round, $25M from Facebook, DST Partners.
Aug 2019: Series D Round, $100M from Naspers, Shunwei Capital, Venture Highway, Sir Arun Sarin, RPS Group, Elevation Capital, Sarin Family India, Facebook, Peak XV Partners.
Apr 2021: Series E Round, $300M from SoftBank Vision Fund, Prosus, Venture Highway, Shunwei Capital, Facebook, Knollwood Investment Advisory.
Sep 2021: Series F Round, $570M from B Capital, Fidelity Investments, Prosus, Facebook, SoftBank Vision Fund, Trifecta Capital, Good Capital, Symphony Asia Holdings, Footpath Ventures.
Funding data was collected from this “source“.
What is the marketing strategy of Meesho?
Meesho case study reveals that Meesho, the top social e-commerce platform in India, has implemented a diverse marketing plan to reach more people and grow its customer base.
Let’s take a quick look at Meesho’s marketing strategies:
• Customized Market Approach :- Meesho specializes in serving small businesses and individual resellers, especially homemakers who may lack financial independence. It provides them the tools to sell products through social networks without any initial investment. This unique approach allows them to start their businesses and tap into the power of social media to reach customers.
• Social Media Marketing :- In today’s marketing landscape, social media plays a vital role, and Meesho has excelled in utilizing it to connect with a broader audience. They actively participate on popular platforms like Facebook and Instagram, showcasing their products and interacting with customers. The company also utilizes campaigns, collaborations, appealing graphics, and captivating videos to enhance its brand visibility and remain prominent in the online spotlight.
In the Meesho case study, Meesho’s motto is “Hamara mission, sabse kam commission” (Our mission, the lowest commission), and their official tagline is “Not just a homemaker, a Meesho Entrepreneur.” Along with updating their logo, Meesho has introduced new sonic branding with the tagline “Lo aaya Meesho” (Here comes Meesho).
• Search Engine Optimization (SEO) :- Meesho’s SEO strategy is optimizing its website and content to match relevant keywords. Its SEO boosts its visibility and ranking on search engines, drawing in more visitors to its platform.
• Influencer Marketing :- Meesho collaborates with various influencers such as Garima Chaurasia, Abhinav Singh, and Khushi Chaudhary to promote their products to their followers. These influencers expand Meesho’s reach and foster trust and credibility among their audience.
• Meme Marketing :- Meme marketing is all the rage these days, and Meesho is diving right in. They’re using memes to spread the word about their latest offers and discounts in a fun and engaging way.
• Data Analytics and Machine Learning :- Meesho uses data analytics and machine learning to tailor their marketing messages and ensure a smooth shopping experience for customers. They gather information on customers’ browsing and buying habits, then use machine learning algorithms to analyze them and suggest personalized products. Plus, they leverage data to fine-tune their pricing and promotions for maximum effectiveness.
• Advertisements & Sponsorships :- Advertising is vital for every business. In the Meesho case study, Meesho leads the pack by adopting the latest digital marketing trends to stay ahead. They use YouTube and Facebook ads to build a strong presence and reach more people. Plus, Meesho partners with various events or shows that match its target audience to boost visibility even further.
What are Meesho’s marketing campaigns?
Humara Mission Sabse Kum Commission’ campaign (#SabseKamCommission) :- With this campaign, Meesho aims to showcase the benefits of utilizing digital platforms to enhance sales for Micro, Small, and Medium Enterprises (MSMEs) and foster their business growth.
Sahi sahi customer, toh business ek number’ campaign :- This digital campaign highlights the ‘Meesho promise’—showcasing how sellers on Meesho can expand their businesses by transforming their views of online shoppers.
Loon Ya Na Loon’ campaign :- This campaign reinforces the company’s commitment to offering fair prices with its ‘Sahi Sahi Lagaya Hai’ (the right price) appeal.
#MyStoreMyStory campaign :- This television commercial showcases Meesho’s significant contribution to enabling women in India to become economically self-reliant.
Arrey Waah!’ campaign (#ArreyWaah) :- This campaign targets the nation’s cricket enthusiasts and will air on major television networks, YouTube, and various streaming services during IPL matches.
Who are the Meesho competitors ?
In the Meesho case study, Meesho encounters competition from various other brands in India. Some of its top rivals are:
• Amazon: A global e-commerce leader offering a wide range of products and known for its customer-centric approach.
• Flipkart: One of India’s leading e-commerce platforms, providing a wide range of products and services.
• GlowRoad: Specializes in work-from-home and reselling opportunities, similar to Meesho’s business model.
• IndiaMART: India’s biggest online B2B marketplace, linking buyers and suppliers.
– Other notable competitors include ShopClues, Snapdeal, Myntra, DealShare, and Shop101, which also operate in e-commerce and online retail.
What are the Meesho challenges ?
The Meesho case study highlights that Meesho, the rapidly expanding e-commerce platform in India, encounters various hurdles.
Here’s a brief overview of Meesho’s challenges:–
• Strategy Shifts :- Meesho’s shift from social commerce to a B2C platform has resulted in strategic confusion and a lack of clear direction. This shift has prompted uncertainty within the company as it navigates the challenges of adapting its business model to meet the changing needs of its customers.
• Poor-Quality Goods :- Since many of Meesho’s suppliers are local and not registered brands, the quality of the end products often falls short.
• High Cash Burn :- Meesho is spending a lot of cash because it offers discounts, subsidizes logistics, and covers marketing expenses. This high spending is causing financial strain and impacting its profitability.
• Competition :- The intense competition from well-established players like Flipkart and Amazon presents a big challenge for the company. In this competitive market, Meesho needs to work harder to attract customers.
• Grocery Segment Struggles :- Meesho’s expansion into groceries hasn’t grown as anticipated, as it faces tough competition from other major players in the industry. So, in this competitive market, Meesho must find new strategies to succeed in the grocery sector.
• Operational Issues :- Meesho encounters difficulties due to the high costs of shipping and its reliance on partners’ logistics technology to run its operations. Overcoming these hurdles requires finding innovative solutions to streamline shipping and enhance operational efficiency.
What is the future plan of Meesho?
Meesho’s case study tells that Meesho, the Indian social commerce platform, is expanding its business model to include 10 million small businesses by 2027. This strategic move puts Meesho in direct competition with major online retailers like Amazon and Flipkart in India. The company intends to broaden its scope beyond its original emphasis on women-led resellers in fashion and homeware to encompass a broader array of categories, including groceries and fast-moving consumer goods (FMCG).
Moreover, in the Meesho case study, there have been reports as of 2023 about Meesho gearing up for a public listing within the next 12 to 18 months. This move reflects the company’s confidence in its business strategy and readiness for the upcoming phase.
Conclusion
In conclusion, Meesho’s case study showcases an inspiring journey from a startup concept to a leading player in social commerce. By empowering homemakers and small businesses to launch online stores without any upfront costs, Meesho has transformed the e-commerce scene in India. The Meesho case study underscores its strategic use of digital marketing to reach a broad audience and drive substantial sales growth, leading to a redefined brand identity and deeper connections with consumers.
Frequntly Asked Questions
Meesho is so cheap because of its innovative approach to business, where it gets products directly from the source. By doing this, they save supply chain expenses. Additionally, it prioritizes affordability over luxury, and since Meesho is online, they don’t have to worry about expensive store rents or utility bills. These savings mean lower prices for you!
At Meesho, if you buy something using cash-on-delivery and need to return it, you can rely on their instant refund process for quick and hassle-free returns.
At Meesho, the products you see come from various manufacturers, wholesalers, and brands. The company tries to present each item as brand new.
Meesho brings you the cheapest wholesale prices directly from suppliers, so you can shop for everything you need at home without overspending. And with options ranging from ₹99 to ₹500, shopping on Meesho is convenient and affordable.
If you require assistance with your orders, returns, or any other inquiries, you can contact Meesho’s customer service team at +918061799600.
Along with his friend Sanjeev Barnwal, Vidit Atrey, the CEO or founder of Meesho, started the company in 2015 with a mission to empower people to kickstart their online businesses.
On Meesho, reselling refers to the process where individuals or small businesses are known as resellers. As a reseller at Meesho, your role includes displaying and selling products from the app to your network or through social media platforms. With each successful sale, you earn a profit.
Meesho has a unique business model of earning money without taking commissions. While Meesho doesn’t charge a commission, it makes money through shipping fees (including GST), payment processing on cash on delivery orders, and other ancillary services.
Meesho is a social commerce platform where you can establish your online store using widely used social media channels like WhatsApp, Facebook, and Instagram. Therefore, it’s indeed possible to earn money through the Meesho app.
Meesho offers diverse job opportunities across various domains like engineering, data science, analytics, finance, human resources, business management, etc. So, Meesho opens up a world of exciting career possibilities!
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