Meesho and it's business model

Ecommerce isn’t the same we knew a decade ago. The rise of social media platforms like Facebook, WhatsApp, and Instagram has meant that there’s a new way to sell online – through social media platforms. And this is where Meesho comes in.

Meesho is a social commerce platform that started with the aim of making it easy for women in smaller towns and cities to sell online. But its business model has taken a few twists and turns over the years. Today, Meesho is one of India’s leading social commerce platforms, with over 18 million registered users.

Commision

Meesho makes money by the commissions which they charged from the sellers. Whenever any reseller sells any product on the Meesho platform, 10-20% commission will charge from the seller of that product. Commission earned model is just like the E-Commerce platforms such as Amazo, Flipkart, etc.

Note = Commission is not charged from the individual users (Resellers) but from the registered businesses’ (Sellers) who ultimately selling the goods/products through the platform.

Meesho’s Revenue [Business] Model is just like any other e-commerce enterprise. There are many ways by which Meesho earns money that is as follows:

Commission

Rank push

Logistics

Rank Push

The number of sellers on the Meesho platform is steadily increasing. Meesho earns money from sellers who want their products to appear at the top of the product page. It can provide an additional revenue stream.

Selling of Data

As we all know, data is the new oil in today's world, and data will undoubtedly add a revenue stream to Meesho. Meesho did not violate any of the policies governing privacy. They can only sell data that does not violate any privacy concerns.

Logistics

Meesho accepts the high delivery charges and is working hard to reduce them effectively. Meesho can increase its revenue by utilizing logistics technologies.

At last, the whole such an good innovative business model was created by two IITian Delhi Graduates Vidit Aatrey and Sanjeev Barnwal, in December 2015.

Meesho's Funding Round

Meesho is a community group buying platform that helps online retailers in India. Like DealShare and Citymall, it is a leader-driven business. 

Meesho has raised over ₹8497 crores in funding, with its latest funding round of ₹965 crores in August. The IPO is expected to be completed in 2023, and the company plans to file IPO documents in January.

The company also charges its resellers for the privilege of featuring their products on its website and app. However, the high costs of running the company's platform are offset by the revenue added by the company's cutting-edge logistics technologies. Meesho started in 2015 as a social commerce platform and became a poster boy for the segment last year. At the valuation, Meesho has valued at ₹37,840 crores.