Meesho not good for business

Meesho has been successful in creating a significant number of job opportunities, which is a positive indicator of its impact on businesses and the economy. The company has generated over 1 million job opportunities, with 5.5 lakh of these jobs coming from its seller network and 6.7 lakh from the logistics sector, ahead of the festive season. This growth can be attributed to Meesho's business strategy and the opportunities it provides for small businesses and individuals to sell products directly to customers through its platform. 1. **Meesho's Business Model**: Meesho operates on a social commerce model, allowing resellers, including housewives, domestic elders, and others who are fond of using social media channels like WhatsApp, Facebook, Instagram, and others to sell merchandise within their non-public community. In 2021, Meesho transitioned into a horizontal e-commerce marketplace platform focusing on creating opportunities for Indian businesses to sell products directly to customers through the Meesho ecosystem. 2. **Revenue Model**: Meesho's revenue model includes charging no commission on sales, but it earns revenue from advertising and by offering logistics services to sellers. In the first half of FY25, Meesho's revenue reached Rs 4,405 crore, a year-on-year improvement of 24%, representing 31% of net sales. This indicates a strong revenue base and the company's ability to generate income without relying on commission structures, which may be more favorable for small businesses. 3. **Market Position**: Meesho is the third-largest e-commerce player in India by market share, selling a wide range of products including clothing, makeup, and home essentials. The company has successfully tapped into the value commerce segment and has built an impressive business on connecting micro fashion enterprises to small-town shoppers nationwide. 4. **Future Prospects**: Meesho has filed for an initial public offering (IPO) and is targeting approximately $497.3 million in fresh capital, which could be a positive sign for the company's future growth and development. The company's focus on leveraging technology and innovative strategies to disrupt established markets has positioned it as a strong competitor against e-commerce giants like Amazon and Flipkart. In conclusion, Meesho has been beneficial for businesses by providing a platform for small businesses and individuals to expand their market reach and create job opportunities. While there may be challenges and competition in the e-commerce space, Meesho's business model, revenue structure, and market position suggest that it is a viable and potentially lucrative platform for entrepreneurs and businesses in India.