According to a report from Reuters, Social Media company Facebook is going to buy a stake in Meesho, an Indian eCommerce startup that connects people re-selling a variety of items with potential buyers on other platforms. Citing Ajit Mohan, the head of the Facebook’s Indian business, the news outlet said the move is to extend the tech company’s reach “In One of the World’s Biggest Internet Markets.”
MEESHO ECOMMERCE STARTUP
Meesho eCommerce Startup is a digital platform for re-sellers of items as diverse as jewelry to smartphones to reach prospective customers via social media platforms like Facebook, WhatsApp and Instagram. It has some 2 million entrepreneurs focused on India’s smaller towns and cities, the Vice President and managing director at Facebook India told the news service.
No details were available about how much Facebook is paying for the stake in Meesho eCommerce Startup, or the size of that stake. Meesho reportedly was founded in 2015 has raised some $65 million in capital so far. Facebook’s investment would help Meesho.
The investment will help Meesho to further its efforts help people to build businesses, the firm said on its website. India has been looking to growth regulation of social media platforms like Facebook and WhatsApp, and that could lead to increased monitoring requirements for such companies.
Before in June, Amazon put $404 million into its India business, which follows an infusion of $315 million half a year ago. The move exemplifies the importance of India to Amazon. The company has been in the country for six years, and has so far spent upwards of $5.5 billion. The retail giant’s main rival is Walmart-owned Flipkart.
The race was impaired by new rules that forbidden for both companies from selling their own records, so they bought in bulk and sold to resellers, and bought stakes in companies that sold products on their own platforms. In February, a new law stopped that activity, resulting in hundreds of thousands of products disappearing from the sites.