Meesho has reportedly secured USD 570 million in a Series F funding round as several high-profile investors have started showing a keen interest in the Indian social commerce platform for its rapid growth during the COVID-19 pandemic. The company has now reached a valuation of USD 4.9 billion.
The latest funding was led by Fidelity and B Capital Group which made the Bangalore headquartered firm double its valuation within six months. It is worth noting here that Meesho had previously secured USD 300 million during a Series E funding in April earlier, valuing it at USD 2.1 billion back then.
Meesho’s co-founder and Chief Executive Vidit Aatrey confirmed that the latest funding round also saw the participation of Prosus Ventures, Facebook, SoftBank Vision Fund 2, and Good Capital, which didn’t involve any secondary transaction. According to Aatrey, the firm intends to use the fresh funds to expand its research and development operations as well as to triple its team size in the next 18 months.
For those unaware, Meesho operates a three-sided marketplace that connects resellers and suppliers with customers on social media platforms like Instagram, Facebook, and WhatsApp. The resellers essentially buy the listed products and make a commission on each transaction made to the consumer.
Kabir Narang, the Founding General Partner at B Capital Group claimed that Meesho's business approach offers a compelling value proposition by bringing together entrepreneurs, suppliers, as well as end customers, on a single platform. It has quickly established itself as a leading participant in this field, helping around 100 million small businesses in Tier 2 and higher cities to sell online.
Meesho intends to reach 100 million registered users by the end of the year. Notably, the platform has been making significant progress in the grocery space as well.
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