Ecommerce brand Meesho calls for media review

Meesho, a prominent player in the e-commerce industry, has initiated a comprehensive media review, a decision reportedly made even before the scheduled renewal of the existing contract. The current agency, GroupM’s Mindshare, holds the incumbent position. The account size is expected to be in the range of Rs 150 to 200 crore.

The announcement of the pitch has stirred significant interest and discussion among industry insiders. Notably, two major agencies have decided not to participate in the pitch. However, the incumbent agency and three other leading agencies have participated in the pitch.

Despite attempts by exchange4media to reach out to Meesho for comments, there has been no response, even after follow-ups.

A senior executive of a media agency, which is not participating in the pitch, remarked, “When we were contacted, we conducted our own background check, we felt that the brand's purpose in calling for a pitch is more driven by a focus on price rather than service quality.”

Valued at nearly $5 billion and backed by SoftBank, Meesho is a significant startup in the e-commerce space. The company, founded in 2015 by IIT Delhi graduates Vidit Aatrey and Sanjeev Barnwal, boasts a unique business model that empowers small businesses. Meesho has garnered strong interest from investors, having raised a substantial $1.1 billion to date. As the e-commerce industry undergoes dynamic shifts, Meesho's strategic decisions, including the ongoing media review, will undoubtedly impact its trajectory in the competitive market.

Vidit Aatrey had in an interview earlier said that the social reselling market in India is estimated to be $6-7 billion in size. By 2025, social commerce is expected to be worth $70 billion and total eCommerce to be worth $200 billion as the number of online shoppers, especially from tier II cities and beyond, continues to rise. After the pandemic, Meesho has also seen an increased adoption rate in India.