Facebook has invested in Meesho, a social commerce startup based in India.
This is the first time that Facebook has invested equity into a startup from this country.
Meesho is an online marketplace connecting sellers to customers through other social media platforms, such as Facebook’s WhatsApp.
In 2018, Facebook launched Marketplace in India, operating in the same space, though Ajit Mohan, vice president and managing director of Facebook India, said Facebook does not see Meesho as a way of expanding its commerce services.
“Wherever we believe there is opportunity beyond the work we do today, we are open to exploring further investment deals.” said Mohan.
According to Techcrunch, Meesho’s user base is located primarily in small towns and cities throughout India, and 80 per cent of the platforms demographic is female.
“We'd like to announce that Facebook has made an investment in Meesho, which will help us further our efforts to enable independent entrepreneurs to build businesses and grow their customer base via social channels," Meesho added in a post on its website.
“Over the last 4 years we've grown from our humble beginnings, to a community of more than 15,000 suppliers and 2,000,000 resellers throughout India. We share a common goal with Facebook - to enable the community and help small businesses grow.”
Neither party has yet expressed the financial terms of the investment.