How Does Meesho Make Money ? | Revenue Model of Meesho | 2021

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Revenue Model of Meesho
Revenue Model of Meesho

Revenue Model Of Meesho

Online purchase is still dominated by private networks, which is the group that social commerce platforms like the Meesho app typically target. Meesho’s business model now includes over a million dealers in over 700 cities across India. It also offers distribution to a few other 20,000 producers via its platform. To date, Meesho has raised $1.1 billion. Meesho’s reselling business is based on a vast social media platform network. In FY20, the company earned INR 307 Cr, up from INR 80 Cr in FY19.

Meesho’s business concept claims to bring in clients to function as online dealers at a lower acquisition cost by utilizing the networks built through the use of WhatsApp agency and other social media systems. Meesho’s version garnered substantial investment from the likes of Facebook, Naspers, DST Partners, RPS Ventures, and Shunwei Capital, despite the employer’s as an alternative lackluster average performance in FY19.

Meesho app was founded in 2015 by batchmates and IIT Delhi graduates Vidit Aatrey and Sanjeev Barnwal as a mobile-first eCommerce platform for resellers such as housewives, domestic oldsters, and others who like to use social media channels such as WhatsApp, Facebook, Instagram, and others to sell merchandise within their non-public community known as social circles.

According to Statista, by the year 2021, over 2.14 billion people will have saved for things and services on the internet. Furthermore, social media platforms with large user bases, such as WhatsApp (400 million users), Facebook (241 million users), and Instagram (72 million users), are expected to act as a catalyst for this expansion.

More About MEESHO :  Meesho Startup Story

Meesho – Latest News

13 April 2021 – Meesho intends to expand its business model in order to reach 100 million small companies in India, a strategy that sets the firm against online retail behemoths like Amazon and Flipkart.

5 April 2021 – Meesho raised $300 million from SoftBank Vision Fund 2 in a fresh round of fundraising, bringing the company’s valuation to $2.1 billion and allowing it to enter the prestigious Unicorn Club.

In FY20, Meesho had a revenue of INR 341.6 crore. The firm’s expenses totaled INR 657 crore. As a result, losses in FY20 increased to INR 315.4 Cr.

The revenue model of Meesho is similar to that of any other e-commerce company. Meesho makes money in a variety of methods, including the following:

  • Commission : The commissions Meesho charges the sellers are how they generate money. When a reseller sells a product on the Meesho platform, the seller of that product will be charged a 10-20% commission. The commission-based business is similar to those of E-Commerce portals like Amazo, Flipkart, and others.

Note: Commission is not collected from individual users (Resellers), but rather from registered businesses (Sellers) who sell goods/products through the platform.

  • Rank Push : Every day, the number of merchants on the Meesho Platform grows. Meesho makes money from sellers that want their products to be featured at the top of the product page. It can provide an additional money stream.
  • Selling of Data : As we all know, data is the new oil in today’s society, and data certainly offer an income stream for Meesho. Meesho did not break any privacy policies, and they are only allowed to sell data that does not infringe any privacy issues.
  • Logistics: Meesho is aware of the high delivery charges and is working to reduce them as much as possible. Meesho can increase its revenue by utilizing logistical technologies.
  • Penalty: If a vendor fails to deliver the merchandise, Meesho will impose a penalty. It’s also a good way for Meesho to make money.
  • Data : Because, as we all know, data is the future, Meesho has gathered all vendor and buyer data. As a result, if the corporation desires, it can sell the data and profit handsomely.

Meesho’s Operation

Meesho is a platform that allows users to resale things through social media platforms including Facebook Pages, WhatsApp & Facebook Groups, Telegram, and others. With the use of Social Media, anyone can resell the products to their friends, relatives, or the community. Meesho does not own, sell, or resell any of the products displayed on the site; instead, third-party merchants who have registered with the platform sell them.


When a consumer expresses an interest in purchasing a product, the user can increase the displayed price and quote it to the buyer. The profit of the user is represented by this mark-up. Meesho is in charge of logistics and ensures that everything runs well.

How can you profit from Meesho?

You must share a product that is listed on the Meesho app to earn money via the Meesho platform. You can share the products with your friends and family via WhatsApp and Facebook pages and groups, and you can earn a commission on each transaction.

You can add your commission and delivery charge above the price as an individual, and you will receive a notification when an order is confirmed. When the customer receives the order, your margin will be credited to your bank account within 10 working days.

Future of Meesho:

The majority of firms have a goal and an objective in mind. So, Meesho’s goal is simple to provide an internet shop to anyone who wants to start a business. Meesho already has over 2 million active merchants making money on its platform, yet the company is still losing money.

Meesho spent approximately Rs.185.30 crore in the 2018-19 fiscal year, but only generated Rs. 84.8 crore in revenue and lost Rs. 100 crore. Meesho spent 91 percent of its budget on free delivery and advertising, which is one of the main reasons it is India’s most popular reselling marketplace.

Conclusion:

As a result, we may conclude that Meesho Company can produce revenue and profit in a variety of methods. Meesho is one of several Indian businesses with a unique targeting and marketing strategy. Meesho is the most recent member of the Unicorn Club. They reached the $1 billion valuation goal in just 5 years. They recently received $300 million from Softbank Vision Fund 2.

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