Social commerce major Meesho plans to double its grocery supply. The company is in the process of integrating its food arm Farmiso with its core app to expand the reach of its grocery deliveries in the coming months, said people who are aware of the development.
“Up until now, Farmiso was an independent app. But Meesho will bring it into its main app to open up the service to Meesho regular customers, ”said one of the above people Trickypediato ask for anonymity.
Farmiso had started offering fresh farm produce in the early days of the pandemic, the Trickypedia would have exclusively reported in February of this year. However, it later focused on selling groceries through a network of resellers.
The integration is apparently a step to counteract the Tiger Global backed DealShare and CityMall. These two companies have scaled up in a very short time and there is great interest from investors in the food-focused social commerce model. Meesho’s foray into this model will intensify competition between these players.
DealShare and CityMall were pioneers in social commerce with an exclusive focus on groceries. CityMall and Farmiso share the same reseller model, while DealShare also has an element of group buying, much like China’s Pinduoduo.
While DealShare is on the verge of starting a new round valued at over $ 1.5 billion, Citymall is in late-stage talks to raise $ 70 million in a potential round.
Trickypedia had only reported on potential financing from DealShare and CityMall.
“What the grocery delivery lacks in quality, it makes up for in quantity. Everyone knows that grocery delivery margins are paper-thin, but when you have a steady stream of returning customers you can offset some of those issues, “said a startup founder who previously ran a company in the field, asking for anonymity.
Meanwhile, Meesho has also increased the hiring of staff for the Farmiso team. “The Farmiso team is currently perhaps the largest team in the company, with more than 400 employees,” said the first person. “Of these, a number of people are urban demand leaders and urban launch managers who make up the bulk of the staff.”
Meesho declined to comment on requests made by. were sent Trickypedia…
When Meesho announced its latest $ 570 million funding round in September, valued at nearly $ 5 billion, Meesho said it plans to expand Farmiso’s presence to more than 200 cities.
In an interview with Trickypedia Meesho CEO Vidit Aatrey said last month: It is important for Meesho to break into the grocery store as the types of customers the company serves spend a large part of their income on groceries.
Interestingly, Meesho’s entry into the grocery trade came at a time when several big players were entering the social commerce space. Flipkart was aggressively pushing Shopsy while Swiggy will be releasing a Meesho type app: Swiggy Bazaar.
Trickypedia had only reported about it Swiggy bazaar in October.