Facebook will be purchasing a stake in Meesho

Facebook and Meesho partnership
Facebook is going to purchase a stake in Indian e-commerce start-up Meesho, Ajit Mohan, the head of the United States tech giant’s Indian business revealed it on Thursday, seeming to intensify its reach in one of the world’s biggest internet markets.

Meesho, founded by IIT graduates Vidit Aatrey, and Sanjeev Barnwal, Meesho is a mobile-first e-commerce platform for the particular needs of precise businesses in India. Businesses can produce an online shop, share on WhatsApp and Facebook. They can keep customers modernized with new stocks, get new customers leads in real-time, and collect payments over chat. Meesho presently has about 1000 small businesses availing its app services.
Meesho, a digital platform on which re-sellers of everything from smallest to largest businesses reach to the prospective customers through social media platforms such as WhatsApp, Instagram and Facebook, already has around two million entrepreneurs focused on India’s smaller towns and cities, the vice-president and managing director at Facebook India told Reuters.

Once a consumer confirms to buy a product, the seller can share a link on Whatsapp and accept payments for the goods sold through various options such as debit and credit cards or mobile wallets. Further, sellers would be able to update consumers about new products via Facebook messenger as well.
“It reflects the new India that is pointing up on the Internet,” Mohan added.
He declined to reveal the value of Facebook’s investment in Meesho or the size of the stake it is procuring.
The investment will help the e-commerce platform to further its efforts to enable autonomous entrepreneurs to build businesses and develop their buyer base via social media platforms, Meesho said on its website.
Meesho was founded in 2015 by two Engineers, it has raised more than $65 millions in funding and counts Shunwei Capital and DST Partners among its benefactors.
Mohan said on his website, Facebook’s investment will help Meesho to maximize its influence on a primary plank of India’s economic growth agenda by encouraging job creation through entrepreneurship.

Why Is Facebook Investing in Meesho?

Facebook (FB) is contributing a vague incentive to buy a stake in Indian internet business startup Meesho, as per a Reuters report. Meesho was established four years prior. The organization is engaged with "social business." Meesho helps connection up merchants with imminent clients via web-based networking media stages. Meesho has pulled in ~2.0 million merchants principally over India's littler urban communities and towns. 

Facebook's investment in Meesho is another move by the US worldwide to back Amazon's (AMZN) rival in India. A year ago, Walmart (WMT) contributed $16 billion to buy a controlling stake in Flipkart—Amazon's fiercest rival in India's web-based business scene. Microsoft (MSFT) and (EBAY) collaborated with Chinese online life and portable installment goliath Tencent (TCEHY) to put $1.4 billion in Flipkart. Afterward, eBay sold its stake in Flipkart to Walmart. 

Facebook enters the race in India

The investment in Meesho demonstrates Facebook's developing enthusiasm for online business. Facebook has incorporated a shopping stage with its leader interpersonal organization. Organizations and people can list things available to be purchased on commercial centers like Amazon and eBay. Facebook permits its Instagram application clients to look for things and make buys inside the application. Facebook is going to reveal advanced money that individuals will most likely use to settle installments with online vendors.

With the Meesho investment, Facebook has entered the race for a multibillion-dollar income opportunity. India's internet business market was esteemed at $32 billion. India's online business market is required to develop to $72 billion by 2022, as indicated by eMarketer measures.

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