Meesho raises $570 million in funding, crosses $4.9 billion in valuation

Meesho has raised $570 million in a funding round led by Fidelity and B Capital to expand the R&D team and acquire more users for the platform.

Meesho, a leading social commerce startup, has more than doubled its valuation to $ 4.9 billion within the last six months through a new round of funding led by US-based asset manager Fidelity and Eduardo Saverin’s B Capital, the company announced on Thursday, September 30. Meesho has managed to raise $570 million and has plans to use the capital to increase its research and development team and platform users. 

The Bengaluru-based startup saw the participation of existing investors like Prosus Ventures, SoftBank Vision Fund 2, Facebook, and Good Capital in its Series F financing round which was reportedly held on September 24. 

Some other investors to back the latest funding round include New York-based Footpath Ventures and venture debt fund Trifecta Capital, the company announced in a statement. The news comes just months after Meesho raised $300 million in a larger funding round led by SoftBank Vision Fund 2, valuing it at $2.1 billion.

“We have grown three times in terms of the number of orders over the last two quarters. The business has continued to expand at a very rapid pace. We’ve been adding more categories and catalogues…We have now become a pure horizontal platform where people can find anything they want,” co-founder and chief executive Vidit Aatrey told ET in an interview. 

The social commerce platform, founded in 2015 by Vidit Aatrey and Sanjeev Barnwal, relies on a three-sided marketplace with suppliers, resellers and customers. As of April this year, close to 13 million resellers and over 100,000 suppliers were using Meesho while about 80% of resellers on the platform were women, making use of social media sites like WhatsApp and Facebook to reach customers and sell their products. 

The company said it had hit 15 million transacting users in the month of August and plans to use the capital to further increase its transacting user base to over 100 million by December 2022. Meesho is also looking to diversify the product categories available on the platform, expanding its selection to 50+ million products, and increase grocery and FMCG offerings through its community group buying business Farmiso to over 200 cities. 

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