Meesho raises $570 mn in Series F round, valuation doubles to $4.9 bn

Social commerce unicorn Meesho said on Thursday that it has raised $570 million in a Series F round led by Fidelity Management & Research Company and B Capital Group. Existing investors Prosus Ventures, SoftBank Vision Fund 2 and Facebook also participated in this round. Other new investors include Footpath Ventures, Trifecta Capital, Good Capital and others. Following the raise, the company’s valuation has more than doubled to $4.9 billion in less than five months.   Meesho said that in just five months since the last round of funding, it recorded 2.5x growth in order volume and added a range of new product categories to its roster including sports and fitness, pet supplies, and automotive accessories. The company intends to go deeper into India’s underserved markets, becoming the preferred e-commerce destination for the next billion users in the country.   “The next wave of growth in India’s digital consumerism will undoubtedly come from Bharat. We’ve always focused our efforts on enabling entrepreneurs from Tier 2+ markets to expand their business and in turn uplift small economic pockets in the country. The new round brings us a step closer to realising our mission to democratise internet commerce for all, increase regional participation in the digital economy, and add momentum to local businesses,” Vidit Aatrey, Founder & CEO, Meesho said,   He added that  the participation of Fidelity Management & Research Company and B Capital Group is a big vote of confidence in our efforts. We will continue to invest in talent to build best-in-class tech and product solutions, while focusing on growth and furthering our efforts in scaling our online grocery business, Farmiso. I am confident we will continue to chart new milestones as we enable online success for every Indian business,” Aatrey added.   India’s unorganised retail sector, estimated to be $792 billion, is set for the next wave of growth, with digitisation enabling rapid expansion and greater reach across the country.    With an aim to reach $100 million monthly transacting users by December 2022, Meesho expects to utilise the fresh round of funding to grow its technology and product talent by 2.5x, increase its roster to 50+ million products, and become the platform of choice for customers, entrepreneurs and sellers from all corners of India. Meesho is also looking to expand its groceries and FMCG offerings with Farmiso (Meesho Grocery), its community group buying business, to 200+ cities. By making online grocery shopping affordable for first-time users across India’s Tier 2+ markets, the company is enabling them to shop from a wide selection of groceries at ticket sizes as low as $1-2.   “We have evaluated e-commerce opportunities across emerging markets and are excited about Meesho’s focus on strong unit economics and a consumer-first approach. We are excited to partner with Meesho and its exceptional team that is democratising e-commerce for a billion internet users across the country. Meesho’s business model has an incredibly compelling value proposition with entrepreneurs, end customers, and suppliers consolidating on one platform. It has rapidly emerged as a leading player in this space. Meesho is now enabling 100 million SMBs across tier 2+ cities, empowering them to sell online, leveraging its digital commerce platform,” said Kabir Narang, Founding General Partner at B Capital Group. EOM