Meesho’s fundraise fortunes hinge on its festive quarter performance

Meesho’s fundraise fortunes hinge on its festive quarter performance

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Aditi Shrivastava

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Aditi Shrivastava

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Recently, Meesho cut costs by shuttering its biggest new initiative, grocery delivery. But with the e-commerce firm preparing for a fresh funding round, how it drives repeat orders, boosts ad revenue, and lowers logistics costs this festive season will determine incoming investor interest

September 06, 2022

11 MINS READ

Since entering the unicorn club in April 2021, e-commerce unicorn Meesho has made big strides. The Bengaluru-based startup has scaled its business to over 100 million monthly users—roughly half the user base of Amazon and Flipkart—even as it has come close to matching India’s e-commerce heavyweights in terms of gross order numbers. 

Armed with these headline-grabbing numbers, Meesho will head  back to the private markets for a fresh fundraise in the coming months. For a company that has thus far raised over $1 billion, however, Meesho will likely find that investors aren’t nearly as quick to whip out their cheque books. Instead, they want to see how Meesho does in the upcoming festive season to see if its bets on a zero-commission, ad-first model, as well as new monetisation levers are holding up.

The most lucrative time of year for all e-commerce companies, Meesho’s fundraising will almost certainly be predicated on its performance over the next two months. The startup has told sellers that the tentative dates for festive sales this quarter will be 23-27 September, and 7-9 October.

“The [festive season] numbers will show if, going forward, it's a downround conversation or flat or even up… there are different scenarios being mapped out,” said a person directly aware of Meesho’s inner workings. Vidit Aatrey, Meesho’s CEO, is waiting to show output based on how this period pans out since the company still has funding gunpowder left over from its last fundraise, they added. 

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