Flipkart acquires social commerce startup Meesho for $2.1 billion

Flipkart acquires social commerce startup Meesho for $2.1 billion assets.entrepreneur.com

Introduction

Flipkart, India's leading ecommerce platform, has announced the acquisition of Meesho, a social commerce startup, for $2.1 billion. The deal, which is the largest startup acquisition in India, will help Flipkart expand its reach to millions of small businesses and consumers, especially in Tier II and III cities, where Meesho has a strong presence. Meesho, which was founded in 2015 by IIT Delhi alumni Vidit Aatrey and Sanjeev Barnwal, enables individuals and small businesses to sell products online through social media platforms such as WhatsApp, Facebook, and Instagram. Meesho has over 13 million entrepreneurs, mostly women, on its platform, who sell products ranging from fashion, beauty, home, and wellness to their network of customers.

Benefits of the acquisition

The acquisition of Meesho will bring several benefits to both Flipkart and Meesho, as well as to the Indian ecommerce ecosystem. Some of the benefits are:

  • Flipkart will be able to leverage Meesho's network of resellers and customers to increase its market share and penetration in the ecommerce space, especially in the underserved segments and geographies.
  • Meesho will be able to access Flipkart's supply chain, logistics, and technology capabilities, as well as its large portfolio of products and brands, to offer more choices and value to its resellers and customers.
  • The acquisition will also create more opportunities for employment, entrepreneurship, and income generation for millions of Indians, especially women, who can start or grow their online businesses with the support of Flipkart and Meesho.

Future plans

Flipkart and Meesho have stated that they will continue to operate as independent entities, while collaborating on various aspects to create synergies and value for their stakeholders. Flipkart's CEO Kalyan Krishnamurthy said, "We are excited to welcome Meesho to the Flipkart family. Meesho is a pioneer in the social commerce space and has built a strong community of resellers and customers. Together, we will build on our shared vision of democratizing ecommerce in India and empowering millions of Indians with the opportunity to buy and sell online." Meesho's co-founder and CEO Vidit Aatrey said, "We are delighted to join forces with Flipkart, the leader in the ecommerce industry in India. Flipkart has been an inspiration for us since our inception and we share the same passion for enabling ecommerce for everyone in India. We look forward to learning from Flipkart's experience and expertise and working together to make ecommerce accessible and affordable for all Indians."

  • [Flipkart acquires social commerce startup Meesho for $2.1 billion]1
  • [Flipkart buys Meesho in India's biggest startup deal]2
  • [Meesho: How a social commerce startup is empowering millions of women in India]3
by Yuda Prawira

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