apps, Asia, funding, Social, Startups, TC, Venture Capital

Facebook backs social commerce startup Meesho in first India investment – TechCrunch

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, 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 5 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 Director of Facebook India, told TechCrunch in an interview.

“A platform that is aimed at India 2 and has such a large user base of women — when most people online in India are predominantly men — is a remarkable achievement,” he said. According to several estimates, males account for more than 80% of India’s internet user base.

Meesho claims that it is helping thousands of resellers earn more than Rs 25,000 ($360) each month. In an interview with TechCrunch last year, Meesho co-founder and CEO Vidit Aatrey said the startup, which operates in India currently, planned to enter international markets.

Even as WhatsApp is a crucial play for Meesho, the startup will continue to work with other social media platforms, Facebook’s Mohan said. Last year, Facebook launched its Marketplace, which operates in the same space as Meesho. Mohan said the company does not see Meesho as a vehicle to expand its own family of services.

On the contrary, Facebook is now open to exploring investment in other startups that are building unique solutions for the Indian market. “Wherever we believe there is opportunity beyond the work we do today, we are open to exploring further investment deals,” he said. There is no particular category that Facebook is necessarily focused on, he added.

 

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