Meesho Unlisted Shares

Meesho, though a late entrant in the e-commerce industry in India, is growing fast to have over 1.2 crore average active monthly users in less than a decade. Started in 2015 as an on-demand delivery service for fashion products from local shops, it came with an innovative idea to establish a platform enabling countrywide shipping for resellers using social media sites like Facebook Now, Meta, Instagram, etc, to market products. 

Any reseller can sell products on the platform to make huge profits, along with customers benefitting from the right products and Meesho earning hefty commissions. Meesho takes pride in over 75,000 of its resellers, recording double-digit growth sales and over 10,000 sellers crossing the Rs. 1 crore sales and over 130,000 crossing sales over one lakh in 2023. This is the reason that it is advisable to invest at the current Meesho stock price to yield high profits.

Now, with a valuation of around 4 billion dollars, Meesho’s journey in the Indian e-commerce landscape is significant, along with that of its competitors, Flipkart and others. Funded by Soft Bank and others over the past few years, it has become the first Indian e-commerce unicorn to confirm profit in the first half of the financial year 2024, apart from the rapid rise in revenue year after year. With its latest fundraising of over 300 million dollars to pay taxes for moving operations from Delaware to India, it will facilitate coming out with an IPO soon. Hence, check out the Meesho share price today to make a wise investment and make windfall profits. 

Meesho is the pioneer e-commerce platform that has capitalized on the rapid rise in the use of social media in the past few years. With continuous funding from top venture capitalists, angel, & marquee investors, banks, and others, Meesho expanded its business even to tier 2 cities in India with cash on delivery and fast and free delivery using its innovative technological partner Valmo. With increasing value and to come soon with an IPO, Meesho continues with its ESOP buyback even in 2023 for Rs. 200 crores after earlier purchases in 2020 and 2021 for 6.5 and 55 million dollars. Hence, it is time to buy it at the current Meesho share price to rise high in the future and get high yields. 

Meesho’s Magnificent Business Model with Unique Products and Services

Meesho, though a late entrant in the e-commerce landscape in India, utilizes the rapid rise of social media users to become a fast-growing e-commerce company. Facebook, Instagram, and other social media platforms are the sources for converting leads to purchasers on this platform to increase sales and, hence, revenue and profit. 

List of Meesho Raised Funds to Become the Fastest-growing e-Commerce Unicorn

Fashnear Technologies Pvt Ltd, the parent company of Meesho, started like Amazon to sell books online because of continuous funding by reputed banks, financial institutions, marquees, angels, and other investors, and has become a fast-growing e-commerce unicorn. Unlike Flipkart, the top e-commerce platform in India, which started in 2007, Meesho started only in 2015 to have a significant share of the e-commerce market in India. The vital reason for it to become over 4 billion value now and over 1.2 crore MAUs or monthly active users is to provide a lot of income to increase its revenue. 

Also, being a simple platform for anyone to sell their products, if it has the potential to be helpful to customers, gets hefty commissions for such sales. All of this is possible only because of the 12 fundraising rounds made by Meesho in the last few years to expand its e-commerce business to the nook and corner in India. Meesho, collecting over 1.1 billion dollars in funding now after its recent 12 rounds, has a cash buffer of over 400 million dollars. The following are a few details of its fundraising rounds to make it not only the e-commerce unicorn in India but also to proliferate. 

As soon as changing to successful e-commerce to board resellers after starting selling books and fashion items online, Meesho raised a seed fund of 120,000 dollars from YCombinator.

In the Series A funding round, it raised 3.4 million dollars in 2017 from Elevation Capital.

In the 2018 Series B funding round, it raised 11.5 million dollars from Peak XV Partners.

Again, in November 2018, Meesho raised 50 million dollars in its Series C round of funding from RPS Ventures, DST Partners, and Shunwei Capital.

In the corporate round of fundraising in 2019, it raised 25 million dollars from Meta, as Facebook and Instagram are the top social media platforms that Meesho uses to develop its e-commerce business model.

Again, in 2019, in the Series D round of funding, Meesho raised 125 million dollars from Naspers and Prosus.

In Series E & F funding rounds in 2021, Meesho raised 300 and 500 million dollars from Softbank Vision Fund and B Capital Fidelity, respectively.

Again, in 2021, a debt financing round for an undisclosed amount from Trifecta Capital Advisors

In October 2023, Meesho raised funds from the secondary market and raised 52.5 million dollars from Westbridge Capital.

Now, in 2024, Soft Bank and Tiger Global will invest 150 million dollars each to raise 300 million dollars to expand their business exponentially.

All the above fundraising, including the current 300 million dollars at the strategic timing as competitors Flipkart is raising 600 and Amazon insuring 100 million dollars in February 2024 to increase its e-commerce marketplace, will increase the Meesho IPO price to yield high returns. 

Excellent Meesho’s Share Price with Rapidly Rising Revenue and Becoming Profitable in FY 23

Meesho, backed by Softbank and many other big investors, became India’s first e-commerce unicorn to post PAT or profit after tax for the second quarter that ended on September 2023. Though with over a crore monthly active users and millions of resellers doing business for lakhs and crores annually, only the revenue of Meesho was increasing but not the profits. Compared to the financial year 2022, the income for FY 23 jumped by 77% from Rs 3,232 to Rs. 5,735 crores. However, the revenue for the first six months of the financial year 2023 to 2024 exceeded the revenue for the full financial year 2021 to 2022. 

 There are many reasons for rising revenue but lower profits, like free delivery services and providing products to customers at competitive costs to Flipkart, Amazon, and others. But in the second quarter of fiscal 2024, Meesho showed profit apart from halving the losses to only Rs. 141 crores compared to last year’s corresponding period. Hence, the year 2023 ended on a positive note f and started 2024 with 300 million dollar funding, making Meesho’s share price today an attractive investment to yield high returns. 

Frequently Asked Questions about the Meesho Company

How has Meesho become the fastest-growing e-commerce platform in India?

Until 2015, Flipkart, Amazon, and a few others were dominating the Indian e-commerce landscape as prominent players. However, like the internet explosion in the ’90s, social media exploded over the past decade, and Meesho was the first e-commerce startup to utilize its high potential. With fewer internet charges in 2015 and more use of smartphones, most Indians were active on social media, similar to others in the world. So, Meesho used social media platforms like Facebook, Instagram, and others for even Meta, the parent company, to invest huge funding in it. Hence, Meesho became the fastest-growing e-commerce platform in India and had a sizeable chunk in the sector. So, buying at the current Meesho share price is a wise investment decision to have high returns because it is turning to profits with the rapid rise in revenues and to come out with an IPO anytime soon. 

Why is Meesho’s revenue rising but not its profits?

Meesho‌ became the growing e-commerce company in India, even giving tough competition to giants like Walmart-owned Flipkart, the world’s biggest e-commerce giant, Amazon, and others. This is because of its free and next-day delivery of goods and its wide network of logistic support across India. Meesho partnered with Valmoto to enable low-cost deliveries by creating a national logistics solution in the nook and corner of the country, eliminating entry barriers for local sellers like fashion jewellers in Surat, etc. It is why over 10,000 Meesho sellers sold over Rs. 1 crore worth of products and added 7 lakh new sellers in 2023, taking the total number to 1.5 million this year. Also, the easy-to-use Meesho app has a record number of downloads yearly to increase its sales. However, the expenditure for providing fast and free delivery to customers and offering competitive costs to outsmart Flipkart, Amazon, and others makes its profit less. However, for the first time, Meesho showed PAT for the second quarter of the financial year 2023 to 2024 and recorded revenue in the first five months. 

Is the current Meesho share price today the best investment?

Yes, without a doubt, the Meesho share price today is the best investment to buy from a reputed online platform to make high yields in the short and long term.