Meesho, a social e-commerce startup has announced that it has raised around ₹20 crore ($3.1 million) in its new funding round. The investment round was led by SAIF Partners.
Along with SAIF, existing investors of the company — Y Combinator and Venture Highway have also participated in this round.
The company is now planning to use the fresh funding to hire new members in its tech and business operation teams. It is also looking to scale up its platform by bringing in more resellers though community engagement and referrals.
Vidit Aatrey, co-founder and CEO of the company, said,
We are building a new distribution channel for suppliers and helping housewives earn from within their social networks.
Mukul Arora, managing director at SAIF Partners said,
This is a very India specific opportunity with strong tailwinds, and has potential to change how long tail products are sold in India.
Previously, Meesho raised funding twice in 2016, mostly through angel investors. Angel investors who invested in the company include Kashyap Deorah, co-founder of HyperTrack; Maninder Gulati, chief strategy officer at OYO Rooms; Jaspreet Bindra, senior vice president at Mahindra & Mahindra and Rajul Garg, Co-founder and Director of Sunstone Business School.
Meesho was founded by Vidit Aatrey and Barnwal in 2015. The startup was also a part of reputed accelerator Y-Combinator in 2016, one of the first Indian companies to be accorded this distinction.
It connects suppliers to a network of resellers who then use channels such as WhatsApp and social media platforms Facebook and Instagram to promote products within their social circles.
The company claims that it has about 20,000 resellers and more than 1,000 suppliers on its marketplace, mainly in the categories of fashion, lifestyle and home, and kitchen.