Meesho is one of the best e-commerce platforms in India and basically catering to the garment segment. It is equipped with more than 150 million active users. Lately, the Bengaluru-based startup secured $275 million funding  and said to be a part of a larger financing initiative that could exceed $500 million when completed.

With the fresh funding the value Meesho is about $3.9 billion. This reflects its growing influence in the social commerce landscape in the county. The platform has garnered significant attention from various investors including WestBridge Capital and Norwest Venture Partners.

The success of Meesho can be defined as following a unique approach in the online shopping segment. It implemented something very different from traditional e-commerce giants. Instead of targeting high-income consumers with branded goods, it mainly focuses on affordability and variety. It boasts a diverse array of goods and has appealed low- to mid-income customers.

The strategy is to offer unbranded products at attractive prices and this proved highly effective. Annual transacting sellers exceeded 440,000 and over 120 million listings. Its average order value (AOV) is lower than its competitors and averaging below ₹350. However, Meesho sets itself apart with affordability.

The algorithmic approach of its platform towards product listings mainly prioritizes factors like seller ratings, product ratings, customer reviews and past shopping behavior. Moreover, it has a cost-efficient model with outsourcing delivery services and other aspects.

Meesho’s success journey is not free of competition. The Indian e-commerce sector is evolving and more platforms are trying to penetrate the market. Amazon India recently launched “Bazaar” platform to target similar demographics with affordable fashion.

However, the fresh funding of Meesho highlights growing importance and potential of social commerce in India.