Online purchasing is ruling the market now. With a bundle of eCommerce websites coming into prominence with their wide range of products across niches, along with affordable and convenient services for users that can be trusted, purchasing online has become very much a reality.
The fact that online shopping websites and eCommerce stores have been changing the lives of buyers and sellers ever since they emerged cannot be argued. However, it is also important to note here that these websites present enormous opportunities for people who want to be resellers and arrange a decent margin for themselves.
Meesho is one of the greatest examples of an Indian e-commerce company, which also extends numerous opportunities for small businesses and individuals who want to start their own online businesses.
In this article, we will explore the Meesho business model, understand how Meesho makes money, and examine the business strategy that has helped it become one of India’s most trusted and widely used e-commerce platforms.
About the Meesho Business – An Overview
Meesho Business Model
Meesho Revenue Model | How Does Meesho Earn Money?
Meesho – Funding and Valuation
Meesho – How to make Money from it?
Meesho – Future Goals and Hindrances
About the Meesho Business – An Overview
Founded by batchmates and IIT Delhi graduates Vidit Aatrey and Sanjeev Barnwal in 2015, Meesho started as a mobile-first social e-commerce platform for resellers that include housewives, domestic elders, and others who are fond of using social media channels like WhatsApp, Facebook, Instagram, and others to sell merchandise within their non-public community, typically recognised as social circles. However, in 2021, Meesho transitioned into a horizontal e-commerce marketplace platform focusing on creating opportunities for Indian businesses to sell products directly to customers through the Meesho ecosystem.
Originally started as Meesho, the name of the company is inspired by “Meri Shop”, translated to “my shop” in English and the thought that it would serve as a shop for everyone in the country.
From Apr’24 to Dec’24, Meesho had ~187 million unique Annual Transacting Users. Total orders placed on the app grew to ~1.3 billion during this period. It additionally witnessed over 400,000 Annual Transacting sellers on the platform. Meesho has a vast network of sellers on the platform. The company recorded revenue of INR 7,615 crore in FY24, which is an increase of around 32.8% when compared to FY23, where it earned around INR 5,735 crore.
Right at the onset, Meesho drew massive investments from the likes of Facebook (now Meta), Naspers, DST Global, RPS Ventures, and Shunwei Capital. In its early years, Meesho positioned itself as a social commerce platform, empowering individuals, especially homemakers and small entrepreneurs, to become resellers. It was often cited as “India’s #1 Reselling App, trusted by 1 Crore+ resellers” during this period.
However, the company has since evolved and is now a “one-stop destination for women’s clothing and accessories,” which also offers an exclusive range of men’s fashion, along with offering the unique opportunity to become sellers. Meesho’s business strategy focuses on e-commerce, empowering sellers, offering a wide range of products, and providing services like logistics and payment processing to drive growth.
Today, Meesho’s business strategy focuses on direct-to-consumer (D2C) e-commerce, empowering sellers, offering a wide selection of affordable products, and providing services like logistics and payment processing to drive inclusive online retail growth.
Sarika Anand
Meesho Business Model
Meesho primarily operates as an e-commerce platform, thereby following a D2C model. It is focused on enabling over 10 crore small businesses, including individual entrepreneurs, to succeed online. Meesho’s business model operates just like the business model of any other e-commerce service provider. With the majority of Meesho’s target market relying on Tier 2, 3, and 4 cities, the company claims to have a presence in 1000+ cities, which facilitates sellers to begin promoting with a 0% commission model.
0% Commission for Sellers
Meesho now follows a zero-commission model for sellers across all product categories, aiming to democratize e-commerce and support small businesses. This aligns with its focus on enabling inclusive and affordable e-commerce for both sellers and consumers, particularly in Tier-II and Tier-III cities.
Meesho is an online shopping platform that helps small businesses and individual sellers reach customers across India, especially in smaller cities and towns. Buyers browse and purchase products directly from these sellers through the Meesho app or website. Meesho supports the process by handling payments, delivery, and customer service. The company earns money mainly by offering advertising options to sellers who want to promote their products and by providing extra services like logistics support. Customers pay separate shipping charges, which vary based on where they live and the product size.
Kanimozhi Sivakumar
Meesho Revenue Model | How Does Meesho Earn Money?
There are lakhs of products to pick from, and as a seller, you don’t have to fear the logistics, payments, and delivery of a product that you sell. Meesho works in the industrial enterprise version, which is comparable to other e-commerce companies. Let’s break down Meesho’s sales streams and how they generate revenue, outlining their revenue model.
Logistics
Meesho generates revenue by providing logistics and fulfilment services to sellers through its own logistics marketplace. In 2024, Meesho launched Valmo, a logistics arm that improves delivery efficiency, supports local entrepreneurship, and contributes to Meesho’s overall revenue.
Advertisements
With a growing number of sellers on the platform, Meesho generates revenue by offering promoted listings and advertising slots. Sellers pay to have their products featured more prominently within the app or on the website, increasing their visibility and sales potential.
Branded E-commerce Marketplace (Meesho Mall)
Meesho introduced Meesho Mall, a dedicated section on its platform for branded products, allowing national and regional brands to sell directly to consumers. This initiative has expanded Meesho’s offerings across various categories, including personal care, footwear, electronics, and more.
Some notable brands available on Meesho Mall include Mamaearth, Himalaya, Dabur, Titan, Denver, Bajaj, Joy, Lotus Herbals, Biotique, Bata, Paragon, Relaxo, and Liberty. Meesho charges a platform fee ranging from 2% to 5% for transactions in this section, contributing to its revenue.
Seller Financing (Meesho Instant Cash)
Meesho offers a financing service called Meesho Instant Cash, providing short-term loans to sellers. This service helps sellers manage their cash flow and grow their businesses. While the primary goal is to support sellers, Meesho may earn interest or fees from these financial services.
Data Analytics and AI Services
Meesho utilises artificial intelligence (AI) and machine learning to analyse user behaviour, preferences, and transaction data. By providing personalised shopping experiences and optimising product recommendations, Meesho enhances user engagement and satisfaction. While not a direct revenue stream, these AI-driven services contribute to increased sales and customer retention, indirectly boosting revenue.
These revenue streams collectively support Meesho’s business model, focusing on providing affordable and accessible e-commerce solutions to small businesses and consumers, particularly in Tier-2 and Tier-3 cities across India.
Meesho Financials FY24
| Meesho Financials | 2023 | 2024 |
|---|---|---|
| Operating Revenue | INR 5735 crore | INR 7615 crore |
| Total Expenses | INR 7564 crore | INR 8150 crore |
| Employee Benefit Expenses | INR 726 crore | INR 750 crore |
| Logistics & Fulfilment Expenses | INR 4817 crore | INR 5927 crore |
| Server & Software Tools Expenses | INR 567 crore | INR 575 crore |
| Net Loss | INR 1675 crore | INR 305 crore |
In FY24, Meesho’s operating revenue grew by 32.8% from INR 5,735 crore in FY23 to INR 7,615 crore. Total expenses increased by 7.7%, rising from INR 7,564 crore to INR 8,150 crore. Employee benefit expenses saw a marginal increase of 3.3%, from INR 726 crore to INR 750 crore, while logistics and fulfilment expenses rose significantly by 23.1%, from INR 4,817 crore to INR 5,927 crore. Notably, Meesho reduced its net loss by 81.8%, from INR 1,675 crore to INR 305 crore.
While Meesho invests significantly in supporting last-mile delivery for its sellers, the company does not charge any commission on sales, following a zero-commission model. Instead, Meesho generates revenue through delivery charges paid by customers and fees from sellers who opt for advertising and promotional services on the platform.
Meesho – Funding and Valuation
Meesho is backed by top investors including Y Combinator, Facebook, Naspers, Sequoia Capital, Shunwei Capital, Westbridge Capital, and SAIF Partners.
Meesho became a unicorn in early 2021 after raising around $300 million in a funding round led by SoftBank, which valued the company at over $1 billion.
| Date | Stage | Amount | Investors/Shareholders |
|---|---|---|---|
| January 27, 2025 | Secondary Market | $260 million | – |
| May 6, 2024 | Venture Round | $275 million | – |
| October 13, 2023 | Secondary Market | $52.5 million | Westbridge Capital |
| October 21, 2021 | Debt Financing | – | Trifecta Capital Advisors |
| September 30, 2021 | Series F | $570 million | B Capital and Fidelity Management |
| April 5, 2021 | Series E | $300 million | Softbank Vision Fund |
| August 12, 2019 | Series D | $125 million | Prosus and Naspers |
| June 14, 2019 | Corporate round | $25 million | |
| November 5, 2018 | Series C | $50 million | DST Partners, RPS Ventures, Shunwei Capital |
| June 7, 2018 | Series B | $11.5 million | Sequoia Capital |
| October 12, 2017 | Series A | $3.4 million | Elevation Capital |
| August 18, 2016 | Seed Round | $120K | Y Combinator |
| March 1, 2016 | Angel Round | $180K | Investopad, Venture Highway, Rajul Garg |
| Jan 15, 2016 | Seed Round | – | – |
Muskaan Kapoor
How To Make Money from Meesho?
As India’s true e-commerce marketplace, Meesho offers a straightforward platform for individuals and small businesses to sell products online across the country. To get started, you simply register as a seller on Meesho’s platform by providing basic business details. Once registered, you can list your products with images, descriptions, and prices on the app without worrying about inventory or logistics management, as Meesho takes care of order processing, payments, and delivery.
Sellers on Meesho benefit from a large customer base spanning Tier 2, 3, and 4 cities, enabling wider reach than traditional sales channels. You can manage orders in real-time through the seller dashboard, track shipments, and receive payments directly. Additionally, Meesho provides sellers with tools to promote products and increase visibility through advertising options. This model empowers small entrepreneurs to scale their businesses with minimal upfront investment while earning profits through sales on the platform.
Alan Joseph
Meesho – Future Goals and Hindrances
As Meesho moves forward, it faces various challenges, including:
- Competition: Meesho is facing competition from various e-commerce platforms such as Flipkart, Shopsy, and Amazon.
- Regulation: The Indian government is currently considering regulations that could potentially impact the e-commerce industry.
- Fraud: Some sellers have been caught selling fraudulent products, which Meesho is currently addressing.
Future Plans
Despite facing hurdles, Meesho has a strong team and user base, and a proven business model.
Meesho is planning to go public in 2025 and aims to raise $1 billion through its IPO, targeting a valuation of $10 billion.
FAQs
How much is Meesho’s Revenue?
In 2024, Meesho’s revenue grew to INR 7615 crore, and losses narrowed down to INR 304.9 crore.
How does Meesho make money?
Meesho makes money mainly through advertising fees from sellers, delivery charges paid by customers, and logistics services. It follows a zero-commission model for the sellers.
What does Meesho do?
Meesho app is a mobile-first eCommerce platform for sellers consisting of individual entrepreneurs, MSMEs, SMBs, retailers, manufacturers, among others who sell a vast range of products to customers in the country
Who is the founder of Meesho?
Vidit Aatrey and Sanjeev Barnwal are the founders of Meesho.
What is Meesho launch date?
Meesho was launched in December 2015.
Is Meesho B2B or B2C?
Meesho primarily operates as a B2C platform, connecting sellers directly to consumers.
What is Meesho business model?
Meesho is an e-commerce platform that follows a D2C and B2C business model. It enables individual sellers and small businesses to sell products directly to consumers across India. With 0% commission, intuitive tools, and smart discovery features, Meesho makes online selling simple, even for first-time digital entrepreneurs
How does Meesho work?
Meesho allows sellers to bring their business online and sell products directly to customers. The sellers share product links, and when people buy, Meesho handles the delivery and payment.
How can I earn from Meesho?
You can earn from Meesho by registering as a seller, listing your products, and selling to customers across India. Meesho handles logistics, payments, and delivery, allowing you to focus on sales and profits.
What is Meesho’s zero-commission model?
Meesho follows a zero-commission model, meaning it does not charge any commission fee from sellers for listing or selling products on its platform, making it easier and more affordable for small businesses to grow online.
