Ecommerce start-up Meesho has announced it will be integrating its grocery operations into its main application by the beginning of the week of May. Along with this announcement, they also changed Farmiso (Meesho’s grocery business) to Meesho Superstore.
This will allow Meesho to grow its user base, particularly in the category of daily essentials that is available within Tier 2 and higher markets. With this move, the customers of Meesho can now gain access to additional product listings through a single platform.
The announcement was made by Meesho CEO and co-founder Vidit Aatrey said, "As more users from Tier 2+ regions become at ease with buying online, the demand for grocery online is growing. We are delighted to incorporate Meesho Superstore into our main application."
The company also added "What was initially an experimental project of the service in Karnataka is now gaining progress across six states. Based on our focus on the user this integration will give millions of Meesho customers a seamless shopping experience while also giving us the opportunity to build more synergies in areas like marketing to customers, technology, products and talent."
The pilot Aatrey mentions is the test run carried out by the company that operates an e-commerce platform Meesho in Karnataka in July of last year. What started as a test phase with grocery offerings in Karnataka, has now expanded to six states for Meesho including Madhya Pradesh, Maharashtra, Gujarat, Telangana & Andhra Pradesh. Moreover, Meesho now plans to expand its superstore to 12 states by the end of the year.
Meesho Superstore currently offers 500 products in a variety of categories including fresh fruits, fresh vegetables, grocery items as well as packaged food as well as other categories.
After the integration is completed after which the startup will be able to offer its users 100 million the ability to access more than 87 million active listings for products in 36 categories from a single platform, according to the startup.
It was established in 2015 by Vidit Aatrey, Sanjeev Bhanwal, Meesho is a social commerce platform that allows individuals and small companies to market their products by buying it from resellers before selling them to customers through Whatsapp, Facebook, Instagram as well as other social media platforms.
In its most recent funding round the startup was able to raise $570 million which was led by Fidelity Management as well as B Capital Group at a valuation of $5 billion.
In total, Meesho has raised just less than one billion dollars of financing over multiple rounds. It is in competition with big players like Dealshare and Flipkart-backed Shopsy as well as the B2B-focused unicorn Udaan.
This comes amid a growing excitement in the super app segment. This is because Tata Neu is scheduled to launch for all users on the 7th of April. The company that runs the fintech arm of MakeMyTrip, a travel company TripMoney has purchased an overwhelming stake in the foreign exchange startup BookMyForex.This is in accordance with the company's plan of creating its very individual travel super application.
This is in addition to other conglomerates on the internet like Amazon, Paytm, and Reliance Jio which have developed their own super apps. Each is competing for a piece of the market, offering numerous services under one roof.
The e-commerce and grocery market together are extremely competitive and present a tremendous opportunity for companies in these industries to earn new revenues. Based on Bain & Company, India's social commerce gross merchandise value was valued at $2 billion in 2020, and it is projected to be $20 billion in 2025.
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Similar to this another study found the Indian online food market to be in the region of $3.95 billion in 2021. This was expected to grow to $26.63 Bn in 2027. This would mean around 33 percent.
The flurry of activity in the super-app segment has been driven by the spread of online shopping that has increased exponentially over the past few years. Big conglomerates are vying for a share of this market, Meesho's battle is only just beginning.
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