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Meesho Business Model – Here’s Everything You Need To Know

    Meesho Business Model

    The Meesho business model is simple yet innovative. The idea is so simple that every one of us might have had a similar idea and dumbed it thinking it is cheap. No, I am not defaming the Meesho business model. Rather, I am trying to convey, how a simple idea that we might have neglected considering it an old school idea, could get you a super nice business module.

    The article discusses the Meesho Business Model to understand it in a simplistic way. So that the purpose of the business model is fulfilled and indeed the article’s as well.

    Concept of the Meesho Business Model

    The concept of Meesho is very innovative and is a type of social commerce. The term might be new to you, but certainly not uncomprehensive. 

    The Meesho business model is something like eCommerce on Social Media, or through Social media. So it is a social commerce platform. 

    How it started?

    The idea was generated from the Women’s recommending each other the best the things to buy. Usually, this precious advice is not given any token of gratitude. And neither such token is expected. 

    So the Meesho decided to take advantage of this scenario. Usually, this is mouth publicity, and whenever a person recommends others to buy the product, the recommender is gets paid for. Of course, when the purchase is made. 

    The Business Model is completely Indian – Ideation is Indian, Founder Vidit Aatrey is Indian, Execution, and Implementation is Indian. 

    So the model is quite easy to decode:


    Sellers are the ones who upload their products for sale on the Meesho App. Sellers are supposed to quote the price. 

    For instance, the seller has placed the T-shirt worth INR 100. The description and other details are needed to be uploaded similar to other eCommerce applications. The only advantage is that Meesho does not require a GST number from you. 

    Meesho Users

    Meesho Users are the ones who will promote the sellers’ products. Users can browse through the app, search for any of the products that users think they can recommend. 

    For instance, the T-shirt that seller has placed or INR 100, can be edited for its pricing. Now, the user can circulate the Meesho link of the T-shirt but with his own price link. The user can put up any price above the sellers’. Suppose, the user has priced the T-shirt for INR 300. The user’s friends will see and check out the product at INR 300 itself. 

    Meesho team

    Meesho team considers the order, tracks the referrals and sellers, and fulfills the order. After fulfilling the order, the sellers are given their own share and the users are given theirs. Meesho team keeps a percent of fulfillment with it. 

    For instance, the Meesho team fulfills the order of the T-shirt to the end-user. The sum of 300 is then distributed. INR 100 is given to the seller. INR 50 is kept by the Meesho team as a delivery fulfillment charges. And rest INR 150 are crested to the user’s account. 

    End Users

    End-users have to pay the Meesho app the amount that is visible to them with the link. These end-users are no Meesho users. 

    For instance, if one of your friends recommends a t-shirt. You liked it and went to the link to purchase it. Here, you are an end-user. You will be paying whatever the buy link showcases. 

    How it got its name

    Meesho sounds girly. And the app was mainly created for women. Meesho is not a German language name. It is simply “My store” or “My shop” – Meesho. It goes, right?

    As the simple yet innovative concept of the Business model is, so is its name. Quite relatable and justifiable. 

    How is it working currently?

    To date, as of the year 2020, the Meesho app has raised more than $215.2 million. The pandemic of 2020 has boosted its growth tremendously. 

    So the business module of Meesho is quite a working ideation. A simple idea that proved to be an innovation. Just because the execution and branding happened at the right time. Else, there are many business modules that were amazing with their concepts but the execution happened either ahead of their time or later. 

    Understanding the contribution of Meesho in the Lives of Women 

    Many women actually liked the concept and the response that the app got was enough to show the apps’ acceptance. Usually, the new business model is not expected to work with such a massive response. But the Meesho Business Model just stroke right, at the right time.

    Women started actively participating in promoting the app. It was great for them to earn referrals in the comfort of their home. For many working women, Meesho proved to be the source of extra income. 

    What is so innovative about Meesho when it is so simple

    The only thing Innovative about Meesho Business Model is its reliable working system. Its policy and its manpower. The database of sellers and users that the Meesho team has collected worked very well in leveraging the Meesho business.

    The concept of the Meesho business model is really simple. However, convincing and getting investors for the same was a real struggle. Formation of team that dreamt the same goal, was a hardship. Here is where Meesho nailed. 

    How investors regretted their decision?

    In the initial phase of the Meesho, it was struggling to get investors. Investors sued them thinking Meesho as a dumb idea. Afterward, seeing the rapid growth of the app, too many investors had to regret it. 

    Bottom Line

    Thus the Meesho Business Model is a very simple and yet innovative concept that came to success because of its right execution. The business model that comes in the market just when the market is ready for it, succeeds.