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Is Meesho’s Business Model at par with E-commerce Giants | Brand Analysis



Meesho is an online e-commerce distribution channel founded in 2015 by two IIT alumni, Vidit Aatrey and Sanjeev Barnwal. The company was established as a social e-commerce website, now it caters to various needs of the customers in fashion, beauty, furnishing, and home appliances. Meesho enables small businesses and individuals to resell their products through WhatsApp, Facebook, etc.

Meesho Company Details
Founders – Vidit Aatrey and Sanjeev Barnwal
Year Founded – 2015
Revenue – INR 341.6 Cr (FY20)

Meesho- short for “meri shop,” mainly targets tier 2 and tier 3 cities. “Meesho’s model is like assisted shopping. The seller shares a product via WhatsApp or Instagram. An order is placed and Meesho delivers it to the customers”, says Saurav Kumar Chachan, Senior Consultant at Redseer Management Consulting.

In a reseller model, a third entity is involved between the buyer and the platform. A reseller sells the products through their social media. Meesho then delivers the products directly to the customers.

Strengths for Meesho:

  • Meesho has a wide range of customers from tier 2 and tier 3 cities here the reach of other e-commerce websites is still less.
  • Their customers are spoilt with a wide variety of choices.
  • Meesho maintains high-quality standards for its products.
  • Serves the non-economical segment of the society.


  • Meesho gets tough competition from deep-pocketed giants like Amazon and Myntra, having a major chunk of users in tier 1 cities.
  • Scope of improvement in product quality
  • There have been instances where customers did not receive the products even after making the payment.

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  • Through this platform, resellers can turn their smartphones into money-making tools.
  • Unlike its competitors, it has utilized social media platforms like Facebook, Instagram, and WhatsApp for business.
  • It has given a platform to the non-economical contributing sector of society. For example, Homemakers are earning through Meesho at the comfort of their homes.


  • Samarth program, an initiative by Flipkart was launched in July 2019 to help underserved communities like weavers and artisans, set up online businesses. This will increase the competition.
  • SeCommerce is another platform that also allows individuals to sell on multiple channels and websites with unprecedented ease.
  • $1 billion will be invested by Amazon over the next five years to digitize small and medium businesses.

“Social commerce is growing in India and Meesho has played a pivotal role in translating the power of online communities to expand economic opportunity for all of India,” says Manish Chopra, director, and head of partnership, Facebook India. Meesho is emerging as an exceptional e-commerce platform empowering every individual who wants to become financially independent. The reseller can get a margin when an order is made through him and on every order, Meesho keeps its own margin as well.

The app has a great potential to win more customers in the coming future, as the number of users of social media is only going to increase in the time to come.

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