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Facebook Enters India’s Investment Market by Supporting Meesho Startup
TechCrunch reports that social media giant Facebook has bought equity in a startup based in India. Unlike its previous purchases – Instagram and WhatsApp – Meesho had already raised nearly $65 mln from several large companies.
The financial terms of the deal have not been disclosed.
So excited to have Facebook as an investor and partner. And super optimistic about all the wonderful things we will do together. Congrats and well done @meeshoapp team! ? https://t.co/hms12YQrBQ
— Vidit Aatrey (@viditaatrey) June 13, 2019
What Meesho does
Among other big investors of Meesho are RPS Ventures, DST Partners, etc. Startup Meesho provides a marketplace that helps bring together sellers and buyers on social media websites and messaging apps, like WhatsApp.
As per Meesho, its user base is as big as over 2 mln resellers of clothing and gadgets. It has been in the market for four years.
Resellers Meesho deals with are housewives for whom smartphones are rather new devices. Three quarters of the company’s users are women living in small and not densely populated locations in India.
Yuri MolchanWhy Facebook chose Meesho
Ajit Mohan from Facebook’s India branch shared why the social media behemoth chose to invest in Meesho.
The first reason is that Meesho has a vast female user base in the country, where the majority of the population is male. Several reports say that Internet users are 80 percent men.
The second reason is that as per Meesho, resellers who cooperate with it earn nearly $370 per month. In rupees this is 25,000, which quite a significant amount for locals. They mostly work through WhatsApp. Besides, Meesho is already strong enough and plans to enter overseas markets.
In 2018, Facebook launched a marketplace similar to that of Meesho’s. Besides, Facebook now is interested in the Indian market and startups that are creating unique products for it.
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