Meesho, India's Social Commerce Giant, to Lay Off 15% of Workforce in Restructuring Plan

Highlights

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• Meesho, a social commerce platform that allows individuals to start their own online stores and sell products on social media, will lay off 251 employees, or 15% of its workforce, as part of a restructuring plan.

• The company has over 13 million resellers, mostly women from small towns and rural areas, who sell products to more than 45 million customers across India.

• Meesho plans to continue investing in product development, technology, and innovation, while also exploring new opportunities in international markets to enable 100 million small businesses in India to succeed online.

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Meesho, a social commerce platform that connects resellers with suppliers and customers, has announced that it will lay off 251 employees, or 15% of its workforce, as part of a restructuring plan. The company said that the decision was taken to streamline its operations and focus on its core business areas.

Meesho was founded in 2015 by Vidit Aatrey and Sanjeev Barnwal, who met at IIT Delhi. The company enables anyone to start their own online store by providing them with a catalog of products from various categories, such as fashion, beauty, home and kitchen, electronics, etc. The resellers can then share these products with their network of contacts on social media platforms like WhatsApp, Facebook, Instagram, etc., and earn commissions on every sale.

The company claims to have over 13 million resellers on its platform, mostly women from small towns and rural areas, who sell products to more than 45 million customers across India. Meesho also claims to have over 100,000 suppliers on its platform, who benefit from increased sales and reduced inventory costs.

Meesho has raised over $300 million in funding from investors like Facebook, Prosus Ventures, Elevation Capital, Shunwei Capital, DST Global, etc. The company was valued at $2.1 billion in its latest funding round in April 2021, making it one of the unicorns in India's startup ecosystem.

However, the company has also faced challenges due to the Covid-19 pandemic, which disrupted its supply chain and affected its sales. The company said that it had to make some tough choices to ensure its long-term sustainability and growth.

In an email to the employees, Aatrey, who is also the CEO of Meesho, said that the company will provide severance packages and outplacement support to the affected employees. He also thanked them for their contributions and wished them well for their future endeavors.

He added that the company will continue to invest in its product development, technology, and innovation, and will also explore new opportunities in international markets. He said that the company's vision is to enable 100 million small businesses in India to succeed online and create a positive social impact.

Also read: Shopify Announces Major Restructuring, Strong Q1 Earnings, and Job Cuts