Meesho is a reselling platform in India that allows users to become resellers and sell products through social media. It was founded in 2015 and is currently one of the hottest startups in India. Meesho enables individuals to become entrepreneurs without the need for upfront capital and offers a wide range of categories for selling. It connects resellers with suppliers and only requires them to purchase products when they receive an order. Meesho has capitalized on macro trends in India, such as the increasing popularity of smartphones and the rise of UPI, to experience rapid growth. It addresses the trust deficit market in India by leveraging trust within communities. Meesho helps users get online and start selling by providing training, mentorship programs, and a supportive community. The platform has empowered women and provided them with a professional identity. Meesho has implemented various strategies to drive growth, such as enabling existing resellers and targeting customers in tier 2 and tier 3 cities. The CEO, Vidit Aatrey, stays in touch with users through personal customer support and regular communication. The Indian startup ecosystem has evolved to cater to the unique needs of Indian users in tier two, tier three, and tier four cities. Meesho believes in solving big problems in India, such as poverty, education, healthcare, corruption, and gender inequality. Foreigners can come to India and start a startup, but it is challenging. The best advice for aspiring Indian founders is to be highly user-focused and challenge existing assumptions and norms. The most exciting startup in India is ShareChat, a vernacular social network. Delhi is considered the best IIT due to its location and the success of its alumni. The recommended must-read books for startups are "The Hard Thing About Hard Things" and "Founders at Work". If Meesho didn't happen, Vidit Aatrey would have worked on a startup idea related to fashion or beauty products for the middle-class audience. In 100 years, he hopes Meesho will remain a user-focused organization that builds scalable products with a significant impact on people's lives.
Intro
Meesho is a reselling platform in India that allows users to become resellers and sell products through social media. The CEO and co-founder, Vidit Aatrey, will discuss his entrepreneurial journey and the startup ecosystem in India.
Key points:
- Meesho was founded in 2015 and went through Y Combinator in 2016.
- It is currently one of the hottest startups in India.
- Meesho enables users to become resellers and sell products through social media.
- The CEO will share insights on the startup ecosystem in India.
What is Meesho?
Meesho is a platform in India that enables anyone to start and grow their own social store on platforms like WhatsApp, Facebook, and Instagram. It eliminates the need for upfront capital and provides necessary tools for entrepreneurship. Key points include:
- Meesho allows individuals to become entrepreneurs without the need for upfront capital.
- It offers a wide range of categories for selling, including fashion, food, travel packages, and cosmetics.
- The platform connects resellers with suppliers and only requires them to purchase products when they receive an order.
- Meesho has opened up opportunities for individuals who previously did not have the means to start a store offline.
Why not just sell directly to consumers?
- Majority of commerce in India happens through small mom-and-pop stores
- Unbranded products are sold through trust relationships
- Online marketplaces in India primarily sell branded products
- Meesho aims to bring trust-based selling to the digital world
- Meesho enables individuals to sell unbranded products through social channels
What are the macro trends in Meesho's favor in India?
Meesho, India's top reselling platform, has experienced rapid growth due to several macro trends in their favor. These trends include:
- Increasing popularity of smartphones in India, leading to a record number of people coming online.
- Launch of Reliance's Jio, reducing the cost of data and allowing more people to access the internet.
- New internet users from smaller cities and lower-income areas prefer unbranded products due to their lower monthly income.
- Meesho offers a platform for reselling unbranded products, capitalizing on this trend.
- Rise of UPI (Unified Payments Interface) enables more people to transact online, building trust in online shopping.
- Meesho recognized these behaviors early on and successfully built their business around them.
In addition, Meesho benefits from other macro trends in India, including:
- Increasing penetration of smartphones.
- Rise of social media usage.
- Growing demand for flexible work opportunities.
Meesho leverages these trends to empower individuals, especially women, to start their own businesses and earn income through reselling products online.
A trust deficit market
The trust deficit market in India is addressed by Meesho, a reselling platform that leverages trust within communities. Key points include:
- Lack of trust in corporate companies, government, and legal system in India.
- Difficulty for new merchants to build trust with consumers.
- Meesho enables individuals in communities to start social stores and sell products to people they know.
- This eliminates the trust deficit and is effective for unbranded products.
- Meesho's model is similar to how unbranded products were sold in small offline shops within communities in the past.
How does Meesho help users get online and start selling?
Meesho helps users get online and start selling by providing them with everything they need to start their own business without any financial investment. The platform specifically targets women in tier 2 and tier 3 cities who have no financial income and aspire to become entrepreneurs.
Key points:
- Meesho offers training and mentorship programs to guide users on how to start and run a successful business.
- The platform has a supportive community where new users can seek advice and guidance from experienced sellers.
- Users can connect with and support each other, sharing tips on acquiring customers and creating value.
Most impactful user stories
The most impactful user stories on Meesho, India's top reselling platform, are about empowering women and providing them with a professional identity. These stories involve housewives, widows, and handicapped women who are able to start their own businesses and gain respect and recognition. The average income generated, around $150 to $200 per month, serves as significant secondary income for families. The platform's focus is on empowering individuals and giving them a sense of respect and identity.
- Meesho's user stories go beyond income increase, focusing on empowerment and professional identity for women.
- Housewives use the platform to start businesses and gain respect and recognition.
- Meesho has helped widows, handicapped women, and others who were unable to find jobs.
- The average income generated, around $150 to $200 per month, serves as significant secondary income for families.
- Meesho's focus is on empowering individuals and giving them a sense of respect and identity.
Growth drivers
Meesho, India's top reselling platform, has implemented various strategies to drive growth. They focused on enabling existing resellers and targeting customers in tier 2 and tier 3 cities. To increase income per reseller, Meesho expanded its product categories and diversified its reseller base. However, they aim to avoid scaling customer support due to its unsustainability.
- Meesho enabled existing resellers and targeted customers in tier 2 and tier 3 cities.
- They expanded their product categories and diversified their reseller base.
- Meesho aims to avoid scaling customer support due to its unsustainability.
Balancing growth and quality
Balancing growth and quality in building a reselling platform is crucial. The key points discussed in the video are:
- The cycle of growing fast and then focusing on improving quality.
- Optimizing for quality while scaling, as customer support calls indicate product issues.
- The need to solve these issues and provide a great experience.
- Acknowledging that compromises between growth and quality may be necessary in the early stages.
- Pausing and fixing any issues before moving to the next level.
What if Facebook copies Meesho?
Facebook copying Meesho, India's top reselling platform, is discussed in this video. The speaker highlights that while Facebook may try to compete in this space, it is not in their nature to do so. They suggest that partnering with Meesho would be a better option for Facebook, as it would enhance their product and attract new merchants. The speaker also predicts that Facebook copying Meesho is just one of many developments within the Facebook ecosystem.
Key points:
- Facebook may attempt to copy Meesho, but it goes against their usual approach.
- Partnering with Meesho would benefit Facebook by improving their product and attracting more merchants.
- Facebook copying Meesho is just one example of the ongoing developments within the Facebook ecosystem.
When did Vidit and his cofounder know they wanted to start a startup?
Vidit and his co-founder knew they wanted to start a startup after developing a strong working relationship and working on various projects together. They decided to start their own startup in 2015, after Vidit's co-founder expressed interest in joining a company in Bombay. The decision was spontaneous and unplanned, but they were confident in their partnership and believed they could work well together. They started brainstorming ideas and created a Google spreadsheet to list potential ideas. They also began talking to people around them. Their first idea was in the fashion industry.
Their first startup idea and the inspiration for Meesho
Meesho, a reselling platform for small businesses, was inspired by the founders' realization that many small shops were already using WhatsApp to engage with customers and sell products. They initially attempted to build a hyperlocal fashion platform but pivoted to creating a marketplace by onboarding these shops as suppliers. The founders discovered that a significant user segment was housewives running boutiques on WhatsApp, which led them to create a platform for anyone in India to start their own shop.
When did they know Meesho was working?
Meesho knew their reselling platform was working when they experienced rapid growth in tracked metrics. They created a separate team for Meesho Supply, which operated on WhatsApp. Within six months, Meesho Supply doubled in size monthly. However, they decided to shut it down due to low retention. They made this difficult decision to fully develop Meesho and capitalize on its potential.
How hard was it to pivot the business and how did they manage it?
The difficulty of pivoting a business and how it was managed:
- Challenges of convincing co-founders and team members to change direction
- Importance of being logical and clear about the need for the pivot
- Struggle to raise money
- Necessity of focusing on the new direction
- Decision-making process and steps taken to gain consensus within the team
- Initially believing in multiple businesses, but eventually realizing the need to focus on one specific area
- Shutting down certain aspects and solely focusing on the chosen area
- Business continued to grow rapidly, confirming it was the right decision.
As a CEO how does he stay in touch with users?
The CEO of Meesho, Vidit Aatrey, stays in touch with users through personal customer support and regular communication via WhatsApp. He emphasizes the importance of understanding user needs and avoiding assumptions. Meesho also fosters a user-focused culture and invites user feedback through town halls, a monthly video series, and direct interaction at office celebrations. This approach has led to success and is recommended for other founders.
How has Vidit's role changed over time?
Vidit Aatrey's role at Meesho has evolved over time, from being hands-on in the early stages to focusing on hiring and managing the team as the company grew. His responsibilities initially included figuring out the long-term business model and handling growth and product development. However, after achieving product-market fit, his role shifted towards hiring employees who align with the company's culture, values, and mission. He also focuses on course correction and ensuring the company's direction is on track. While he still spends time with the product team, his main focus now is on sustaining the business through hiring and managing the team.
- Initially, Vidit was hands-on and responsible for growth and product development.
- As the company grew, his role shifted towards hiring and managing the team.
- He focuses on hiring employees who align with the company's culture, values, and mission.
- Vidit also focuses on course correction and ensuring the company's direction is right.
- While he still spends time with the product team, his main focus is on sustaining the business through hiring and managing the team.
How has he learned to be a CEO?
Vidit Aatrey, CEO of Meesho, has learned to be a CEO by building a network and talking to other founders. He leverages resources like investors and board members to connect with successful founders. By discussing experiences and challenges, he gains valuable insights and learns from mistakes. Learning from other founders in the same context is the best way to learn, and a strong peer network is crucial for CEO success.
- Vidit Aatrey learned to be a CEO by talking to other founders and building a network.
- He leverages resources like investors and board members to connect with successful founders.
- Discussing experiences and challenges with other founders provides valuable insights and learning opportunities.
- Learning from other founders in the same context is the best way to learn.
- A strong peer network is crucial for CEO success.
What mistakes have they made?
The speaker discusses the mistakes they made while building their reselling platform, Meesho. Their first mistake was listening to venture capitalists (VCs) too much and seeking their guidance from day one. They learned that VCs don't always know what is best for the company and wasted four months following their advice. The speaker emphasizes the importance of believing in one's own idea and product, rather than relying on others to believe in it.
What was his best decision?
The best decision made in the early days of Meesho was to start the company with Sandy. This decision allowed them to navigate through mistakes, make necessary changes in the business, hire like-minded individuals, and experience the highs and lows of entrepreneurship. Starting the company together was considered the single best decision.
- Starting the company with Sandy was the best decision made in the early days of Meesho.
- This decision allowed them to navigate through mistakes and make necessary changes in the business.
- It also enabled them to hire like-minded individuals and experience the highs and lows of entrepreneurship.
What's a strong opinion he had about running a startup that he's changed since running Meesho?
- Vidit Aatrey's strong opinion about startups solving their own problems has changed
- He now believes that it is possible to build products for others, especially for tier 2 and tier 3 audiences in India
- He emphasizes the importance of caring deeply about the users of the product
How has the Indian startup ecosystem evolved?
The Indian startup ecosystem has evolved significantly in recent years, with startups now able to cater to the unique needs of Indian users in tier two, tier three, and tier four cities. This shift has led to the emergence of companies that focus on understanding and solving the problems of these users from the bottom-up. This development is seen as a positive change for the Indian startup ecosystem.
Key points:
- Startups initially struggled to find parallels in the US or China, hindering their growth.
- Introduction of new payment systems like UPI and increased internet penetration have enabled startups to cater to the unique needs of Indian users in tier two, tier three, and tier four cities.
- Companies now focus on understanding and solving the problems of these users from the bottom-up, rather than simply replicating Western-inspired products.
- This shift is seen as a positive change for the Indian startup ecosystem.
- There are still many other significant problems in India that founders can and should address.
Big problems worth solving in India
India faces several big problems that are worth solving. These problems include:
- Poverty: India has a high poverty rate, with millions of people living below the poverty line.
- Education: The education system in India needs improvement, with a lack of quality schools and teachers.
- Healthcare: Access to healthcare is a major issue in India, with many people lacking proper medical facilities.
- Corruption: Corruption is widespread in India, affecting various sectors and hindering development.
- Infrastructure: India needs better infrastructure, including roads, transportation, and electricity.
- Gender inequality: Women in India face discrimination and unequal opportunities in various aspects of life.
- Pollution: India is grappling with severe air and water pollution, impacting the health of its citizens.
- Overpopulation: India's population is growing rapidly, putting pressure on resources and services.
- Agriculture: The agricultural sector in India needs modernization and support to ensure food security.
- Unemployment: Job creation is a significant challenge in India, with a large number of unemployed individuals.
These problems require attention and concerted efforts to bring about positive change and improve the lives of people in India.
Can foreigners come to India and start a startup?
Foreigners can come to India and start a startup, but it is difficult. However, since English is widely spoken in India, Westerners can build products for the same audience. The best advice for aspiring Indian founders is to stay close to users.
- Starting a startup in India as a foreigner is challenging
- Understanding the culture and user behavior is crucial
- English language proficiency can be an advantage for Westerners
- Staying close to users is the key to success for Indian founders
Best advice for aspiring Indian founders
The best advice for aspiring Indian founders is to be highly user-focused and challenge existing assumptions and norms. Key points include staying close to users, listening to feedback, and building products that cater to their specific needs. This may involve building in local languages, providing customer support through phone calls, and solving problems unique to the Indian market. By being problem solvers and staying close to users, founders can find success in building products for this audience.
After Meesho, what's the most exciting startup in India?
The most exciting startup in India is ShareChat, a vernacular social network designed for smaller towns and cities in India. Users can consume content in their own language, making it popular across the country.
- ShareChat is a vernacular social network in India
- Designed for smaller towns and cities
- Users can consume content in their own language
- Popular platform across the country
Why is Delhi the best IIT?
Delhi is considered the best IIT due to its location in the capital city and the success of its alumni. Key points include:
- Being in Delhi provides numerous opportunities and resources for students.
- Many successful unicorn founders in India are from IIT Delhi.
- IIT Delhi alumni are inspired by Flipkart founders and often go on to start their own companies.
- Delhi is highly regarded and compared to Stanford in terms of reputation.
- The speaker emphasizes the importance of having close friends from IIT.
- The speaker seeks a must-read book recommendation.
What's a must read book and why?
The most profound aspect of the topic is the recommendation of two must-read books for startups: "The Hard Thing About Hard Things" by Ben Horowitz and "Founders at Work" by Jessica Livingston.
Key points:
- "The Hard Thing About Hard Things" provides a practical perspective on startup challenges and helps in decision-making.
- "Founders at Work" offers comfort and inspiration during difficult times in the startup journey.
What's a startup idea he'd be working on if Meesho didn't happen?
- Vidit Aatrey would have worked on a startup idea related to fashion or beauty products for the middle-class audience.
In 100 years, what does he hope Meesho is?
- Vidit Aatrey hopes that Meesho will remain a user-focused organization in 100 years.
- Meesho aims to build scalable products that have a significant impact on people's lives.
- The company will prioritize user needs and adapt to new technologies.