Meesho Case Study and Success Story

Meesho Case Study and Success Story – Every startup has its fair share of success and shortcomings, but despite all the obstacles they come on top and set an example for future entrepreneurs and brands. One great example of such a startup is Meesho!

In this blog post, we will take a look at the success story of Meesho, through a case study that will take into account many factors such as the background of its founders, the revenue generated, marketing strategies, funding, business model and the scope of its growth in the future.

What exactly is Meesho?

Despite more than 9 years of its operation, not everybody is familiar with the name “Meesho”. For the unversed, Meesho is an Indian e-commerce company that caters to businesses and individuals. The Meesho marketplace provides Indian businesses, which includes Manufacturers, Retailers, SMBs, MSMEs, and individual entrepreneurs, access to a plethora of customers, pan-India logistics, payment services, and customer support capabilities to efficiently run their businesses on the Meesho ecosystem.

How does Meesho work?

Meesho is an e-commerce company that has greatly impacted the e-commerce space. It is an e-commerce platform that empowers sellers to offer their products at everyday affordable prices for users. Meesho is still innovating and highly likely to win in the e-commerce space.

You can earn through Meesho by selling fashion and lifestyle products on Whatsapp, Facebook and Instagram. Once you open the Meesho app, you will see a huge collection of quality products from top suppliers in business. Select a product that you think your network will like so much so that they will be willing to making a purchase. You can share these products with your Whatsapp contacts, groups, Facebook friends, Instagram followers, etc.

You can add your margin on top of the product + shipping charges, and share the final price with your customer. Once they confirm the order, you can place the same through the app. In case you place a COD order, the amount will be credited in your bank within 10 working days.

How was Meesho Started?

Vidit Aatrey and Sanjeev Barnwal, founded Meesho (short for Meri Shop, trans. My Shop) in 2015. Meesho is India’s only true e-commerce marketplace. With a mission to enable small businesses, including individual entrepreneurs, to succeed online, Meesho is democratizing Internet commerce and bringing a range of products and new customers online. The Meesho marketplace provides Indian businesses, which includes Manufacturers, Retailers, SMBs, MSMEs, and individual entrepreneurs, access to a plethora of customers, pan-India logistics, payment services, and customer support capabilities to efficiently run their businesses on the Meesho ecosystem. Meesho operates on a zero-commission model for sellers, meaning they keep 100% of the sale price without any commission charges. This allows sellers, particularly small businesses and individual entrepreneurs, to maximize their profits. The Meesho business strategy allows businesses to operate with minimal overhead and maximum reach, tapping into the potential of e-commerce to boost sales.

Before Meesho came up in 2015, the social commerce sector was really struggling.  

So, in a way, Meesho has revolutionized this particular industry and paved the way for many similar businesses. However, “Meesho” wasn’t the initial brand name that the founders came up with. They launched the startup with the name Fashnear. If it would have been in operation today, it would have been equivalent to what Zomato is for food; and what Grofers is for groceries.

The founders wanted to introduce a new choice-based method of shopping. For instance, a user could pick 3 items at once, which the delivery executive will take to their home. Upon delivery, they could choose one or more of the 3 products and pay only for those. The delivery executive would carry back the rest with him. As strange as this may sound, but it was the initial plan behind Fashnear. Thankfully enough it was not implemented.

Meesho’s Success Story

Meesho became a proud member of the Unicorn club (startups that have a valuation of $1 billion or more) in 2021. 

You can get an idea about Meesho’s success through the following awards and recognition that it has gained over the years:

• Meesho claimed rank #8 among 25 fastest-growing YCombinator incubated startups in August 2016.
• The next year Deccan Chronicle, a leading daily newspaper, ranked Meesho among Top 5 apps for social commerce.
• February 2018 marked a great year for its founders Vidit Aatrey and Sanjeev Barnwal. The duo featured in Forbes list of 30 under 30 list of young achievers.
• Meesho was among a handful of businesses to be profiled by Forbes Asia in the same year.
• Meesho was chosen as part of the 1st batch of Google Launchpad’s ‘Solve for India’ program for startups in 2018.
• LinkedIN, too, honoured the company “as one of the Top 25 startups to work for based on a number of parameters including employee growth, talent pull, jobseeker interest, employee growth and level of professional engagement with its employees.

Meesho Revenue Model

Meesho operates on a zero-commission, asset-light business model. Instead of charging sellers a commission, it generates revenue through seller advertisements and other methods mentioned below:

1. Commissions

Meesho operates on a zero-commission, asset-light business model

2. Advertisement

As a seller, you can buy ads on Meesho and rank above your competitors. Advertisement is a very reliable source of revenue for all startups today and Meesho is no exception.

3. Logistics

Meesho is well-known to provide an in-house logistics and delivery services to its sellers. By using this service, sellers save on a lot of hassle, while the startup makes some good revenue.

Meesho Headquarters

Meesho has its headquarters at Bengaluru. The total orders placed on the e-commerce platform grew to ~1.3 billion between Apr-Dec’24. Moreover, Meesho had ~187 million unique Annual Transacting Users (ATUs) as of Dec’24 and over 400,000 Annual Transacting Sellers on board. The most popular categories on Meesho are Fashion, Jewellery, Home & Kitchen, Beauty & Personal Care, and Kids & Baby Care.

Meesho’s Future

Meesho’s innovative model has disrupted India’s e-commerce landscape by democratizing entrepreneurship and making online selling accessible to millions. By focusing on affordability, empowering sellers, and leveraging internet commerce, Meesho has created a scalable and sustainable business. As it continues to expand its product offerings, enhance its technology, and explore new markets, Meesho is well-positioned to maintain its leadership in the e-commerce space.