Google is in talks with Meesho and might invest $50 million to enter the Indian e-commerce industry. The Bengaluru-based social commerce company- Meesho has raised $570 million in the financing round led by Fidelity and B Capital, following the $30 million raise it achieved in April 2021. The other investors of the company include Softbank, Elevation Capital, Sequoia Capital India, and Y Combinator.
The company operates by connecting manufacturers, distributors, and resellers to customers through social media platforms such as Instagram, Facebook, and Whatsapp. The resellers on the platform are mainly women who buy the products from the manufacturers and distributors and sell them to the customers on a commission basis.
The company has seen huge growth post-pandemic so much that competitors such as Flipkart have recently added additional resources on social commerce looking at Meesho’s success. According to Vidit Aatrey’s (Meesho’s co-founder) statement, the company has seen 3x growth ever since it was established in 2015, and has earned the faith of around 13 million entrepreneurs and 100,000 suppliers.
The social commerce market is expected to grow by $20 billion by 2025 as compared to $1.5 billion according to Bernstein reports. The analysts further report that the reason for this massive growth is the ability to empower around 40 million small entrepreneurs. Around 85% of sellers on social media platforms are small retailers who do not have any online presence for their businesses.
Among the other investments that Google is targeting include $10 billion in 1India and startups such as Glance and DailyHunt. Youtube- Google’s video and social media platform have also acquired SimSim in July which was also in social commerce and Bengaluru-based Open which is a neo banking startup.