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Vidit Aatrey on Building Meesho, India's Top Reselling Platform, with Adora Cheung
33 segments available
Vidit Aatrey is cofounder and CEO of Meesho. Meesho is a platform in India that allows people to resell products using their social networks. They were in the Summer 2016 batch of YC and you can check them out at Meesho.com. https://twitter.com/viditaatrey https://meesho.com/ Adora Cheung is a Partner at YC. Before working at YC she cofounded Homejoy. https://twitter.com/nolimits Y Combinator invests a small amount of money ($150k) in a large number of startups (recently 200), twice a year. Learn more about YC and apply for funding here: https://www.ycombinator.com/apply/ *** Topics 00:00 - Intro 00:45 - What is Meesho? 2:45 - Why not just sell directly to consumers? 4:30 - What are the macro trends in Meesho's favor in India? 6:55 - A trust deficit market 8:20 - How does Meesho help users get online and start selling? 11:10 - Most impactful user stories 13:15 - Growth drivers 15:15 - Balancing growth and quality 16:50 - What if Facebook copies Meesho? 18:15 - When did Vidit and his cofounder know they wanted to start a startup? 20:45 - Their first startup idea and the inspiration for Meesho 25:05 - When did they know Meesho was working? 26:45 - How hard was it to pivot the business and how did they manage it? 29:30 - As a CEO how does he stay in touch with users? 34:15 - How has Vidit's role changed over time? 36:20 - How has he learned to be a CEO? 37:55 - What mistakes have they made? 39:00 - What was his best decision? 39:40 - What's a strong opinion he had about running a startup that he's changed since running Meesho? 41:10 - How has the Indian startup ecosystem evolved? 42:45 - Big problems worth solving in India 42:30 - Can foreigners come to India and start a startup? 44:35 - Best advice for aspiring Indian founders 45:45 - After Meesho, what's the most exciting startup in India? 46:45 - Why is Delhi the best IIT? 47:40 - What's a must read book and why? 48:35 - What's a startup idea he'd be working on if Meesho didn't happen? 48:50 - In 100 years, what does he hope Meesho is?
Segments Timeline
Introduction to Meesho
In this segment, Adora Cheung introduces Vidit Aatrey, the CEO and co-founder of Meesho, highlighting its rapid rise as one of India's hottest startups. Vidit shares his excitement about discussing his entrepreneurial journey and insights into the Indian startup ecosystem.
"this is a door from YC I'm excited to have a detox light CEO and co-founder of me show which was founded in 2015 and you went through YC in 2016 so today misho is probably one of the hottest startups ..."
What is Meesho?
Vidit Aatrey explains Meesho's core concept as a platform that enables anyone in India to start and grow their social store on various social media platforms. He discusses the significant growth in users and the diverse product categories available, emphasizing the accessibility Meesho provides for aspiring entrepreneurs.
"off with I love the need me show its which I believe is short for a marry shop which means my shop and it obviously alludes to what my show is today maybe you can start off with giving us a quick back..."
The Role of Trust in Commerce
Vidit discusses the importance of trust in the Indian market, explaining how traditional commerce relies heavily on mom-and-pop stores. He highlights how Meesho leverages community trust to sell unbranded products, making it easier for consumers to buy from resellers they know.
"because we do not need them to invest any money in working capital or starting up an offline shop you can come here start your shop on whatsapp access anything from a supplier marketplace and only whe..."
Macro Trends Favoring Meesho
Vidit shares insights on the macro trends that have contributed to Meesho's growth, including the rise of WhatsApp and the impact of Reliance Jio in making data affordable. He explains how these trends have enabled millions of new users to come online and engage in e-commerce.
"2019 right and today also ninety percent of total commerce happens in these small mom-and-pop stores you will see in societies people will just put a bowl outside the house and start selling products ..."
Understanding the Trust Deficit
In this segment, Vidit elaborates on the concept of a trust deficit in the Indian market, where consumers are skeptical of corporate entities. He explains how Meesho addresses this issue by fostering trust through community connections, allowing users to sell unbranded products effectively.
"been super lucky right in many ways right so what's up started to become very very popular about five years ago in India so and what suppose generally the first app most people use so a lot of these p..."
Empowering New Entrepreneurs
Vidit describes the typical Meesho user, focusing on the demographic of women, particularly from tier 2 and tier 3 cities. He shares how Meesho empowers these users to become entrepreneurs without the need for upfront capital, fulfilling their aspirations of starting a business.
"big was definitely very lucky right UPI has become very big recently which is enabled which is taught a lot of people to start transacting online for the first time which means people now getting comf..."
Transformative User Stories
Vidit shares impactful stories of Meesho users, particularly women who have transformed their lives through entrepreneurship. He highlights how these women gain professional identity and respect within their communities, illustrating the broader social impact of Meesho.
"unbanded products where you have no idea what will happen to this product after a month right so you buy for example some apparel and after a month all the color goes away and I have a lot of these do..."
Building a Supportive Community
In this segment, Vidit discusses how Meesho fosters a community among its users, providing mentorship and resources to help them succeed. He emphasizes the importance of peer support and shared experiences in helping new entrepreneurs navigate their journey.
"of starting that store right so this is my typical user most of these users are people with no financial incomes in smaller cities who are looking to start a business who are looking to do something o..."
Empowering Women Through Entrepreneurship
Aatrey shares impactful stories of Meesho's users, primarily women, who have transformed their lives through the platform. He explains how many users, often housewives, seek not just financial independence but also a professional identity, gaining respect and recognition in their communities as they build their businesses.
"doing this the community helps each other out I love the stories on what you've change do you obviously change some people lives who what is the what is the best story for you who is the best user in ..."
The Impact of Income on Lives
In this segment, Aatrey elaborates on the financial impact Meesho has on its users, noting that while many do not rely on it as their primary income, the additional earnings significantly enhance their family's financial stability. He emphasizes the importance of the identity and respect gained through entrepreneurship.
"just about how much money this person makes it's a lot about what were they doing before so we have widows who are not able to sustain like they their family feed their kids etc there are women who li..."
Driving Growth Through Problem Solving
Aatrey explains how Meesho continuously addresses challenges to drive growth. He discusses the evolution of their product to create new resellers and expand income opportunities for users, including diversifying product categories and establishing a supply chain that allows access to a broader range of products.
"lot about how you empower me what identity do you give me people start giving me more respect is like much much more important that's very inspiring so in terms of what's driven growth so far obviousl..."
Balancing Growth and Quality
Aatrey shares insights on the cyclical nature of growth and quality at Meesho. He discusses the challenges of rapid expansion and the importance of addressing quality issues without compromising customer experience, highlighting the need for a dedicated team to focus on maintaining standards as the company scales.
"we said hey hey can we make enable not just housewives but other people then we started going out we on-boarded students we own boated retired folks who are trying to make pensions we have a lot of me..."
Navigating Competition from Giants
In this segment, Aatrey addresses concerns about competition from major players like Facebook and Amazon. He argues that while these companies may enter the space, their inability to replicate Meesho's community-driven model and the unique needs of their users will limit their success in this niche market.
"correct so it's it's always been a cycle right so you grow very fast and then you realize you've carried so much debt around a lot of Rob's lot of manual things and then you start focusing how do you ..."
The Journey to Entrepreneurship
Aatrey reflects on his journey with his co-founder from college to launching their first startup. He shares how their initial lack of interest in entrepreneurship evolved into a commitment to start a business together, highlighting the spontaneity and unpredictability of their decision-making process.
"optimizing for hey my product is broken in these places and I have to solve them out so not just in terms of cost operations about what overhead you have but just giving a great experience you need to..."
Lessons from Early Startup Attempts
Aatrey recounts their first startup idea focused on hyperlocal fashion and the lessons learned from its failure. He explains how this experience shaped their pivot to Meesho, emphasizing the importance of understanding market needs and the challenges of fulfillment in the fashion industry.
"good all right so you guys decided to start working together I know I think the first idea you had was fashion here or was that is that true yeah the first one you actually started working on so tell ..."
Identifying the Real Users
Vidit discusses how they discovered that many of their users were housewives running boutiques on WhatsApp. This revelation shifted their focus and inspired the development of tools tailored for these users, highlighting the importance of understanding the actual customer base.
"left over yes re-engaging with their customers and Watsa and this guy was saying that i sell 30 40 percent of my like total business every month on whatsapp now and my like brother whose invite Finn d..."
The Growth of Meesho Supply
As Meesho began to grow, Vidit explains the creation of 'Meesho Supply,' a tool designed to help women entrepreneurs sell products via WhatsApp. He shares insights on how this approach led to rapid growth and the decision to focus solely on this successful model.
"lower than what we expected and men used to speak to our users we realize that about more than half of our total users but not the same segments that we intended this product to be for it was not that..."
Making the Hard Decision to Pivot
Vidit reflects on the challenges of pivoting from their original business model to focus on Meesho. He discusses the internal discussions with his team and co-founder, emphasizing the importance of data-driven decisions and the need for consensus in navigating change.
"tool to do something they never expected what was the point in what you thought this is it like was there like a certain metric you're tracking was just growing really fast or there was just there's a..."
Communicating Change to the Team
In this segment, Vidit shares how he communicated the pivot decision to his team. He emphasizes the importance of transparency and logical reasoning in gaining buy-in from team members, which ultimately led to a unified focus on the growing Meesho platform.
"only focus we will work on how hard was that because most people have a really hard time trying to let go this one thing that's actually not doing that it's actually doing fine so it was very very har..."
The Role of a CEO in a Growing Startup
Vidit discusses how the role of a CEO evolves as a startup grows. He highlights the importance of staying connected to users and understanding their needs, which is crucial for making informed decisions that drive the company forward.
"right so you have to be logical about this if it keeps growing you will make money in the other thing that happened at that time you're struggling to raise money we were on the few companies after YC ..."
Staying Close to Users: A Unique Approach
Vidit explains his strategy for staying close to Meesho's users, particularly the women entrepreneurs. He shares how he personally engages with users through WhatsApp and how the entire company fosters a user-focused culture to ensure they meet customer needs effectively.
"decision mhm yeah that's great so when when startups start becoming really big companies the CEOs role changes a lot and many times they get further away the distances away from the actual user and wh..."
Evolving CEO Responsibilities
Vidit discusses the evolution of his role as CEO of Meesho, from being hands-on in the early days to focusing on team building and company direction as the company scales. He reflects on the importance of hiring the right people who align with the company's culture and values, and how this shift has allowed him to maintain a connection with the product and users.
"art users and it has got amazing response like every user comes back and responds there and with like very big answers what needs to change what is not changing most people love it most people look fo..."
Learning from Other Founders
In this segment, Aatrey emphasizes the importance of networking with other founders to learn from their experiences. He shares how discussions with peers and mentors have provided valuable insights into overcoming challenges and refining business strategies. This highlights the significance of community and shared learning in the startup ecosystem.
"think everyone should do it yeah so in terms of your role tell me a little bit how it has evolved over time obviously when you had no users you were like on the ground being super scrappy and just lik..."
Mistakes and Lessons Learned
Vidit reflects on a critical mistake made early in Meesho's journey, where he focused too much on VC advice instead of trusting his instincts. He shares how this experience taught him the importance of believing in his vision and understanding that external advice may not always align with the startup's unique context. This segment serves as a cautionary tale for new founders.
"motivation motivating people at all times but this is my work now yeah yeah thanks nothing yeah I missed all days I do I do make many times I like I just go back I still spend a lot of time with the p..."
The Best Decision: Co-Founding with Sandy
Aatrey identifies his decision to co-found Meesho with Sandy as the most pivotal choice in his entrepreneurial journey. He discusses how their partnership has been instrumental in navigating the ups and downs of building the company, emphasizing the value of collaboration and shared vision in achieving success.
"what is the best decision you made in the early days of Misha when looking back was super critical to your current success I think my best decision ever was to start this company with Sandy yes I had ..."
Changing Perspectives on Problem Solving
In this segment, Vidit shares how his views on solving problems have evolved since starting Meesho. Initially believing that entrepreneurs must solve their own problems, he now recognizes the importance of addressing the needs of others, particularly in the context of India's diverse market. This shift in perspective highlights the adaptability required in entrepreneurship.
"think it's also some point if it's your users not yourself is that you care deeply about the users yes and it's clear from how you talk that you do care all right so switching topics a little bit I wa..."
The Evolution of the Indian Startup Ecosystem
Vidit discusses the rapid evolution of the Indian startup ecosystem, noting the shift from copying Western models to creating unique solutions for local markets. He highlights the impact of technological advancements like UPI on enabling transactions and fostering innovation among tier two and three audiences, showcasing the potential for growth in India's entrepreneurial landscape.
"do so you can't get the same in Western inspired product into India and get make it work for them yeah right so now a lot of new companies are coming up who are taking a very new approach like the fir..."
Opportunities for Foreign Founders in India
Aatrey discusses the challenges and possibilities for foreign entrepreneurs looking to start businesses in India. He acknowledges the difficulties due to cultural differences but also points out the advantages of building products in English for a diverse audience.
"guys yeah because these people right now use only whatsapp Facebook maybe a couple more apps maybe me show and that's all yep yeah all right so how do you solve for where do they spend more time how c..."
Advice for Aspiring Indian Founders
Vidit Aatrey shares his best advice for aspiring Indian founders, stressing the importance of staying close to users and being user-focused. He encourages founders to challenge existing norms and assumptions to better serve their audience.
"go what is your best piece of advice for aspire Indian founders my best piece of advice for aspiring Indian founders will be just go out and stay very close to users the only thing that has worked for..."
The Most Exciting Startup in India
In a lightning round, Aatrey names 'Sheer Chat' as one of the most exciting startups in India, highlighting its focus on vernacular social networking for smaller towns and cities, which caters to the diverse linguistic landscape of the country.
"be a lot of problem solve for these audiences yeah that makes a lot of sense alright so I want to finish off with a lightning round which is like five quick five quick questions so one after me sure w..."
Why Delhi is the Best IIT
Vidit Aatrey explains why he believes IIT Delhi is the best IIT, citing its proximity to capital and the success of its alumni in founding unicorns. He reflects on how the environment inspires new entrepreneurs to pursue their startup dreams.
"many like there's so many languages in in India do you know how many yeah there are a lot there are so many yeah yeah so it is said that like a dielectric lease changes every 2 kilometers in India so ..."
Must-Read Books for Entrepreneurs
Aatrey recommends 'The Hard Thing About Hard Things' as a must-read for entrepreneurs, sharing how it has helped him navigate challenges in his startup journey. He appreciates its practical insights and frameworks for decision-making.
"that is definitely there mm-hmm story sort of becoming like a Stanford equivalent in silico short for sure what's the best IT after Delhi but I always have to pick a name because a lot of my friends v..."
Vision for Meesho in 100 Years
Vidit Aatrey shares his long-term vision for Meesho, emphasizing the importance of remaining user-focused as technology evolves. He expresses hope that Meesho will continue to impact lives positively, regardless of the changes in the business landscape over the next century.
"just go back and revise everything yeah yeah that's my favorite when people ask me what book should I read related to startups that's that's that and founders that work by Jessica Livingstone are the ..."