Facebook backs social commerce startup Meesho in first India investment
Curated by: Startups
As Facebook explores ways to generate revenue from WhatsApp, the company is now turning to a startup that already has a lead. The social juggernaut said today it has invested in social-commerce startup Meesho in what is the first time the firm takes equity in an Indian startup.
Neither Facebook nor Meesho, which prior to this announcement had raised about $65 million from a number of investors including DST Partners, RPS Ventures and Shunwei Capital, shared financial terms of the deal. A source familiar with the matter told TechCrunch the size of the capital was “very significant.”
Meesho, a Y Combinator alumnus, is an online social commerce that connects sellers with customers on social media platforms such as WhatsApp. The four-year-old startup claims to have a network of more than 2 million resellers who largely deal with apparels and electronics items.
These resellers are mostly homemakers, most of whom have purchased a smartphone for the first time in recent years. Meesho has most of its customers in smaller cities and towns, popularly dubbed as India 2 where the next phase of internet users are joining from. These are two things that attracted Facebook to Meesho, Ajit Mohan, VP and Managing