Facebook Doubles Down On E-commerce With Investment In India's Meesho

Posted: Jun 13 2019, 7:06am CDT | by , in Technology News


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Facebook doubles down on e-commerce with investment in India's Meesho
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The move could help Facebook develop its existing Marketplace feature.

Facebook has invested in Indian social commerce app Meesho, the social media giant’s first in India.

The announcement was made by Meesho on its website without disclosing the size of Facebook’s investment.

Bengaluru, India-based Meesho was founded in 2015. Prior to its launch, the app’s founders created a fashion discovery and commerce app called FashNear the same year.

Meesho’s app allows users to browse through clothing items, household products and more from suppliers across the world. Users can share items on their WhatsApp, Facebook and Instagram accounts and earn from reselling. The startup says users can as much as 25,000 Indian rupees, or around $360, per month when they resell. They can also earn weekly bonuses of up to 6,000 rupees (around $85) and commissions of up to 5,000 rupees (around $72) for referrals.

Meesho said it will use Facebook’s investment to expand its offerings in a bid to “enable independent entrepreneurs to build businesses and grow their customer base via social channels.”

The company claims to have more than 15,000 suppliers and 2,000,000 resellers throughout India over the last four years.

Facebook has yet to release an official announcement confirming the deal, but Facebook India’s Vice President and Managing Director Ajit Mohan told TechCrunch that the social media giant was attracted to the scope of Meesho’s customer base in smaller cities and towns, and its reseller base, which are mostly homemakers.

“A platform that is aimed at India 2 and has such a large user base of women — when most people online in India are predominantly men — is a remarkable achievement,” Mohan reportedly said.

Facebook’s move follows the launch of its own e-commerce service called Marketplace in 2016, a section on the Facebook app that lets users discover, buy and sell items. Facebook does not yet offer payment and shipping options with Marketplace.

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<a href="/latest_stories/all/all/81" rel="author">Mandy Jean</a>
Mandy covers the latest news in Tech and Business.




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