Newsletter
E-commerce platform, Meesho, is making a big bet beyond online shopping. The company has acquired Kirana Club for ₹202 crore, giving it full ownership of the business and indirect control of its Indian subsidiary, Retail Pulse Labs.
Why does this matter: Kirana Club is a B2B platform that serves India's neighbourhood grocery stores. It has more than 4 million registered retailers and operates in a market that is estimated to be worth $658 billion.
With the acquisition, Meesho gains direct access to millions of kirana stores and can use its logistics network, supplier relationships and technology platform to help these retailers source products more efficiently.
Bigger story: for years, the narrative has been that quick commerce is replacing kirana stores. The reality is more nuanced.
Indian consumers haven't abandoned their local grocery shops. They've simply added another option.
Around 45% of quick-commerce users rely on these apps mainly for urgent purchases, while another 24% use them for everyday top-ups like milk, bread and snacks.
In other words, kirana stores and quick-commerce platforms are increasingly coexisting rather than competing head-on.
By acquiring Kirana Club, Meesho is positioning itself to benefit from both sides of that equation, the rise of digital commerce and the continued dominance of India's neighbourhood retailers.
