According to a source, the locally developed social commerce network Meesho has closed down its grocery division. With the exception of Nagpur and Mysuru, more than 90% of Indian towns have shuttered the company, known as Superstore, which has led to the loss of many jobs. According to a report by Inc42 that cited sources, the Superstore shutdown led to the dismissal of 300 staff in several Indian locations. Last week, the closing was completed. On-roll and off-roll staff, including city launch managers, price team leads, warehouse managers, sales executives, sourcing executives, and market intelligence executives, were among the 300 employees that were let go.
The business hasn’t made any statements about the situation. Six states, including Karnataka, Telangana, Andhra Pradesh, Gujarat, Madhya Pradesh, and Maharashtra, had Meesho Superstore locations. Meesho changed the name of Farmiso to Superstore in April after financing $570 million the previous year and announcing plans to expand the business into 200 cities. Farmiso was rebranded as Superstore to emphasise its continued commitment to meeting consumer demand for everyday necessities in Tier 2 markets and beyond, while Meesho had fired 150 employees—mostly from Farmiso—in the same month. It had intended to incorporate its grocery company into the main application at the time. Meesho’s founder and CEO, Vidit Aatrey, has previously made a comment about it.
“What started as a pilot in Karnataka is now seeing positive traction across six states. Driven by our user-first mindset, the integration will provide millions of Meesho users a unified shopping experience, while giving us an opportunity to drive stronger synergies across areas such as customer acquisition, technology and product and talent,” he had stated in the declaration. 200 staff had previously been let go by Meesho during the initial Covid-19 pandemic.
According to the Inc42 story, Meesho gave the fired on-role workers a two-month salary as part of their severance package this time. Report’s sources says, the corporation has also integrated some of the on-roll workers into its core operation. According to the majority of the sacked employees, the company’s decision to pull out of the project and cease operations in the majority of cities was motivated by low revenue and a large cash burn.
“The business was not working right. There was no money coming in. This is why they decided to shut operations in most of the cities,” One of the sources spoke to the media outlet. “We were burning a lot of money for this business. Meesho started business in six states without proper planning. The supply chain was an issue, so was the logistics,” as per another sources. To make online grocery shopping more inexpensive, Meesho started a test in Karnataka. By the end of 2022, the business hoped to offer Superstore in 12 states.