Facebook invested as much as $25 million (Rs 173 crore) in Bengaluru-headquartered social commerce startup Meesho, according to a report by The Hindu Business Line.
Meesho, a digital platform backed by Sequoia Capital, SAIF Partners, Bain Capital, Shunwei Capital, DST Partners and RPS Ventures, enables resellers to reach their customers via social media platforms such as Facebook, WhatsApp and Instagram.
According to a statement issued by Meesho earlier in June, the investment will help independent entrepreneurs “build their businesses and grow their customer base via social channels.” However, the deal size then could not be ascertained.
For Facebook, on the other hand, the investment will help it ramp up its presence in India, which is considered one of the biggest internet markets globally.
Resellers on Meesho’s platform sell anything from jewellery to mobile phones to customers, primarily in India’s smaller towns and cities. Co-founded by two engineering graduates in 2015, the startup claims to connect about 2 million entrepreneurs typically catering to tier II and III cities across India. Of this, close to 80 per cent are first-time women entrepreneurs.
Meesho, which shares a common goal with Facebook to enable the community and help small businesses grow, adopts a three-way marketplace model that connects consumers, resellers, and suppliers on a single platform.
The startup has so far raised over $65 million in funding.