Meesho Challenges Amazon, Flipkart With 25% Cheaper Products, Rs 1 Cr Cashbacks
Meesho, a newcomer in the e-commerce space, has started its own sale event to compete with those of Amazon and Flipkart.
What Is It?
Its first branded flagship sales event called Maha Indian Shopping League is taking place from October 6-9.
It comes after Flipkart’s flagship Big Billion Days sale and Amazon’s Great Indian Festival started this October.
It has hosted sale events before but what sets this one apart is its scale and the promise of the biggest rewards of the season.
Users get a chance to win prizes such as premium cars, total cash rewards of Rs 1 crore, Meesho credits worth Rs 15 crore, gold coins and appliances worth over Rs 2 crore.
Meesho expects to clock three times more daily orders fulfilled by about 250,000 sellers across over 700 product categories.
Vidit Aatrey, founder of Meesho, expressed the company’s excitement toward “reimagining ‘Bharat’s’ festive shopping experiences with the first edition of Maha Indian Shopping League.”
It aims to “democratise internet commerce” and has lowered entry barriers by improving ease of business for sellers and bringing onboard more local businesses.
Agarwal claims that 80% of its products are “better priced than competitors” while also being 20-25% cheaper than other marketplace catalogs.
It launched a zero percent seller commission model earlier this year which helped gain 10x growth in new sellers joining Meesho, onboarding over 100,000 sellers.
Other incentives include free ad credits and zero return shipping charges on the first 30 orders.
Change In Direction
Initially it was a social commerce startup with a reseller model.
It empowers sellers to create an online storefront on its platform and share the link via social media platforms.
They would get a cut of the revenue from any transactions.
It later changed gear to become an e-commerce marketplace after consumers started flocking to the platform, lured by its low prices.
Unicorn After 6 Years
It managed to raise $570 million from Fidelity Management and B Capital last week.
B Capital Group is a venture capital firm backed by Facebook cofounder Eduardo Luiz Saverin.
The unicorn is now valued at $4.9 billion.
Meesho, according to a recent Jefferies report, has so far been the frontrunner in social commerce.
It hit $1.4 billion of GMV within six years of inception.
The site has registered a 3x growth in monthly transacting users In the past six months and monthly orders rose over two times.
40% of Meesho’s new users during this time were also first-time e-commerce users.
In the future, it is seeking to increase its presence in India’s underserved markets and expand its category offerings which now include automotive accessories, pet supplies, sports and fitness.