Facebook-backed ecommerce firm Meesho shuts its Indonesia operations

Facebook-backed ecommerce firm Meesho recently announced the closure of its Indonesia operations last month on Instagram as the company is said to be re-evaluating its presence in Southeast Asia’s largest economy.

The Meesho team in Bangalore / Photo credit: Meesho.

The India-based startup’s support services in Indonesia were available up until yesterday, March 18. It has not yet responded to Tech in Asia‘s query regarding the closure.

Meesho connects independent resellers with suppliers and helps them curate a catalog of goods and services, which these “social sellers” then sell within their networks on WhatsApp, Facebook, and Instagram. Many of these sellers are small retailers, women, students, and retired citizens, with a large chunk comprised of homemakers.

The closure of the company’s Indonesia operations resulted to over 100 employees losing their jobs. It came just about a year after Meesho had launched its services in the country, reported Deal Street Asia.

The company had gone up against Lazada, Bukalapak, Tokopedia, and Shopee, among others, in Indonesia’s fast-growing and competitive ecommerce market.

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Meesho is also reportedly in advanced talks to raise nearly US$250 million from investors in a new funding round led by Japan’s SoftBank Vision Fund. The potential fundraise is expected to double the company’s valuation from its previous round.

In August 2019, Meesho banked US$125 million in a funding round led by Naspers. Facebook and existing investors SAIF, Sequoia Capital India, Shunwei Capital, RPS Ventures, Venture Highway, and former Vodafone Group CEO Arun Sarin also participated in the round.