Meesho has raised $570 million in a fresh round of fundraising headed by Fidelity Investments and Eduardo Saverin's B Capital, bringing its valuation to $4.9 billion in less than six months. Footpath Ventures and loan venture debt fund Trifecta Capital are among the new investors, according to the company.

Meesho plans to double its research and development team and expand its user base with the new funds. The Bengaluru-based business will also put a large amount of the money into Farmiso, its grocery marketplace, which it started earlier this year and has been aggressively hiring for.

Meesho's current round of funding comes as the company fights a wave of fraudulent and unconsented orders on its marketplace. Aatrey has announced a series of actions to perform a forensic audit and investigate the issue, including the hiring of consultant Deloitte.

The social commerce firm was in talks to raise a new funding round on September 24, which will bring on board Fidelity and B Capital. The round also included existing investors SoftBank Vision Fund, Prosus Ventures, and Facebook.
Meesho was valued at $2.1 billion in April after raising $300 million from SoftBank Vision Fund, the company's largest financing round.

“We have grown three times in terms of number of orders over the last two quarters. The business has continued to expand at a very rapid pace. We've been adding more categories and catalogues…We have now become a pure horizontal platform where people can find anything they want,” co-founder and chief executive Vidit Aatrey told.

Meesho had roughly 45 million monthly orders in August, according to Aatrey, up from 20 million monthly orders in March. In the same month, the firm reported it had 15 million active users. By December 2022, the social commerce company expects to have about sevenfold more monthly transacting consumers, bringing the total to 100 million.

Meesho began as a reselling platform for women businesses, founded in 2015 by Aatrey and Sanjeev Barnwal. Meesho began selling directly to consumers this year, putting it in direct competition with Walmart-owned Flipkart and Amazon India.

“We realised that more people want to buy directly. And that number was going up massively. So we redesigned the app to also serve such consumers. We continue to see a strong platform for women entrepreneurs. A very unique thing about our business is to tap direct consumer demand as well as reach out to those consumers who are still not comfortable coming and buying directly from us ” he added.