6 Feb 2024
It will launch a credit marketplace for borrowers on behalf of banks and Non-Banking Financial Corporations (NBFCs).
Another eCommerce industry unicorn, Meesho, plans to diversify its portfolio by entering the fintech and e-grocery business. It will launch a platform for borrowers on behalf of lending partners like the banks and NBFCs in FY2025. It will earn a commission on every loan disbursed. It will begin with offering merchant loans and slowly move to consumer lending, focusing on smaller cities.
At present, 80% of Meesho’s sellers are retail business owners. The brand earns through advertising and seller services. Its competitors, Amazon, Flipkart, and Tata Neu, already offer consumer and merchant lending services.
Meesho intends to build an entire credit offering system, including credit underwriting and fraud detection. It will build an in-house credit risk and data science team, too.
Meesho scaled down its grocery business in 2022 and rebranded it from Farmiso to Meesho Superstore. It cut 48% losses in FY2023 and turned profitable in July 2023.