H2-On Thursday, the social commerce platform Meesho announced it had accumulated $570 million (about Rs 4,235.2 crore) in funding, directed by Fidelity Management & Research Company and B Capital Group, which has assisted the company more than double its valuation to $4.9 billion in less than five months.
Existing investors: Prosus Ventures, SoftBank Vision Fund 2, and Facebook also engaged in this round, a statement stated. Other new investors include Footpath Ventures, Trifecta Capital, Good Capital, and others, it added.
In April, Meesho had boosted $300 million (about Rs 2,201.7 crore) in a funding round from SoftBank Vision Fund 2 and others, which had driven its valuation to $2.1 billion. To date, the company has accumulated over $1 billion.
Meesho, in a statement, on Thursday said it has recorded 2.5x growth in order volume and affixed a range of new product categories to its roster, including sports and fitness, pet supplies, and automotive accessories in just five months since the last round of funding.
The company proposes to go deeper into India's underserved markets, becoming the favored e-commerce destination for the following billion users in 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 over 50 million products, and become the platform of choice for customers, entrepreneurs and sellers from all corners of India," the statement stated.
The statement asserted that the company is also looking to expand its groceries and FMCG offerings with Farmiso (Meesho Grocery), its community group buying the business to more than 200 cities.
Meesho regarded that making online grocery shopping affordable for first-time users across India's tier II and beyond markets, it empowers them to shop from an extensive selection of groceries at ticket sizes as small as $1-2.
"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," Meesho founder and CEO ViditAatrey stated.
He added that the company would invest in talent to build best-in-class tech and product solutions while converging on growth and advancing its shots in scaling its online grocery business, Farmiso. "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... Meesho''s business model has an incredibly compelling value proposition with entrepreneurs, end customers, and suppliers consolidating on one platform," KabirNarang, Founding General Partner at B Capital Group, stated.