Meesho is one of the most popular online reselling platforms in India. It is an e-commerce platform that works on a B2B model. It enables the buying and selling of a wide range of products including apparel accessories, cosmetics, utensils, furniture, electronics, etc. Do you know Meesho valuation was the talk of the town in the current fiscal year? It was valued at $4.4 billion (Rs.36,080 crore) as on May 30, 2023.
Aren’t you curious to know its shareholders and the funding rounds that led to its enormous valuation?
If yes, then stick to this article and you will get all the info about it!
Fundings & Shareholders Breakdown
Recently, Meesho came into the limelight due to its cheap/affordable products. This raised a query among folks- Why Meesho products are so cheap?
The primary reason behind it is the promising business model of Meesho. However, another reason for being in the headlines is its potent VCs that act as the backbone of the company. All thanks to those venture capitalists due to which Meesho valuation rose to Rs.36,080 crore.
Let’s look at the funding rounds of Meesho-
|Venture Capitalists (Lead Investors)||Funding Amount||Series of the Funding Rounds|
|Trifecta Capital Advisors||Undisclosed||Debt Financing Round |
(20th October 2021)
|B Capital Group Fidelity Management |
and Research Company
|$570 million |
|Series F |
(30th September 2021)
|SoftBank Vision Fund||$300 million |
|Series E |
(5th April 2021)
|Prosus & Naspers||$125 million |
|Series D |
(12th August 2019)
|Meta||$25 million |
|Corporate Round |
(14th June 2019)
|DST Partners, |
|$50 million |
|Series C |
(5th November 2018)
|Peak XV Partners||$11.5 million |
|Series B |
(7th June 2018)
|Elevation Capital||$3.4 million |
|Series A |
(12th October 2017)
|Y Combinator||$120 thousand |
|Seed Round |
(18th August 2016)
|Investopad, Rajul Garg, Venture Highway||$180 thousand |
|Angel Round |
(1st March 2016)
Meesho has raised a total of $1.1 billion in funding over 11 rounds. Its latest funding round occurred on 20th Oct 2021.
Currently, Meesho valuation is Rs.36,080 crore ($4.4 billion). Unfortunately, the company has not disclosed the percentage of shares owned by each shareholder in the current fiscal year.
Is Meesho Profitable
Let’s have a quick detour to the financials of Meesho in the fiscal year 2022-
|Meesho Financials (FY22)||Amount (in Crores)|
|Market Valuation||Rs.36,080 crore ($4.4 billion)|
|Profit/Loss||Loss of Rs.3,247 crore|
As you can see, the B2B firm Meesho’s revenue jumped to 4.5X to Rs.3,232 crore in FY22. In the last fiscal year, it earned a revenue of Rs.792 crore. That sounds quite good! Isn’t it? Unfortunately, its losses widened too at the scale of 7.5X.
Its primary revenue sources are-
Despite having diverse revenue sources, it couldn’t make profits. The whopping losses of Rs.3,247 crore have occurred mainly due to its heavy expenditures.
Expenses: Meesho’s Expenditures
The following table provides a brief breakdown of Meesho’s expenditure costs-
|Expenses||Amount in FY22||Amount in FY21|
|Logistics & Fulfilment Costs||Rs.2,829 crore||Rs.632 crore|
|Advertising Expenses||Rs.2,579 crore||Rs.424 crore|
|Employee Benefit Expenses||Rs.509 crore||RS.149 crore|
|Others||Rs.690 crore||Rs.132 crore|
As you can see, the expenditure on some of the verticals surpassed the amount of revenue. That it earned during the respective fiscal year. Most of them grew over 4.4 times. However, the company has been trying to reduce the burn on expenditures. But it must compete with pre-established e-commerce giants like Flipkart and Amazon. That is why it must introduce new policies and creative advertisements.
Future Plans of Meesho
The B2B e-commerce firm experienced an exponential rise during the days of the pandemic. However, in the post-covid era, it continues to face tough competition from other e-commerce players. Thankfully, the reseller business model of selling apparel and other commodities through intermediaries is still a highlight of Meesho. It is still a significant brand admired in tier-2 cities due to its super-affordable products.
Meesho is going to explore more verticals to expand its services. It will bring innovative methods to gain a strong foothold in the B2B industry! Also, it is planning to go public in the next two years.