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In a remarkable feat, the Bengaluru-based startup, Meesho, is shaking up the social commerce landscape. With a staggering Gross Merchandise Value (GMV) run rate exceeding $5 billion, the homegrown platform has become a force to be reckoned with. Bucking the trends, Meesho's app witnessed an outstanding 32% YoY growth in December 2023, outshining both Flipkart's 21% and Amazon's 13%, as highlighted by analysts at AllianceBernstein.
What sets Meesho apart is its strategic focus on small towns and an unwavering commitment to cater to a value-conscious customer base. This approach has proven to be a game-changer, with over 50% of Meesho's sales stemming from Tier 2 and below cities, a demographic often overlooked by the industry giants. This unique positioning, combined with a zero-commission model for sellers, has propelled Meesho's rapid adoption, showcasing a growth trajectory that outpaces competitors.
Meesho, currently valued at nearly $5 billion, boasts backing from industry heavyweights like Meta, SoftBank, Fidelity, B Capital, and Prosus. The platform's identity as a haven for small, unbranded sellers further bolsters its appeal, contributing to its success in a market where Tier 2+ users are steering 80% of e-commerce, according to insights from AllianceBernstein.
Over the last 12 months, Meesho has notched up a 43% YoY increase in order volume, coupled with a robust 54% growth in revenue through healthy take rates. A significant 50% of Meesho's GMV is attributed to the apparel and fashion segment, reflecting the platform's diverse offerings. With an impressive 120 million monthly active users and a growth rate of 29% YoY, Meesho's retention rates stand at a formidable 85% for repeat customers, underlining its popularity and user loyalty.
In contrast, AllianceBernstein's report estimates Flipkart's current GMV share at 48% in India's online retail industry, reaching approximately $29 billion in FY2023. As Meesho continues to redefine the norms, the startup is not just keeping up with the giants; it's surpassing them, setting a new benchmark for social commerce in the region.
