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Arcane
Hey, I'm on Medial • 1y
In the initial years when capital was limited, Meesho primarily functioned on a reseller model. Resellers would find products on Meesho’s platform, add their markup and then sell them on social media platforms. This highly ASSET LIGHT model, helped Meesho to gain traction quickly as it reduced their Inventory carrying cost and CAC. When Meesho had access to more capital and relatively inexpensively, they also OPPORTUNISTICALLY started a D2C marketplace model as well. While this model incurred more costs like inventory storage and delivery, it also gave Meesho MORE CONTROL over the customer experience. This allowed the business to unlock a new way to grow. Again, as capital started to become more expensive since 2022, Meesho shifted focus back to its PUSHING RESELLER MODEL MORE, with stronger focus on improving profitability levels. THE RESULT? Meesho's strategic repivot and scaling have been a masterstroke, aligning perfectly with the ever-evolving macro environment.
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