In its first-ever equity investment in an Indian start-up, Facebook on Thursday announced an investment in Meesho, a platform that enables Indian entrepreneurs to establish online businesses via social channels.
Although the social networking giant did not disclose the amount, the move by Facebook is seen as a commitment to the country’s vibrant Internet ecosystem.
“We are excited about India and its rapidly rising Internet ecosystem. With this investment in Meesho, we want to fuel a business model that can result in rapid job creation and the rise of a female entrepreneurial class in India,” Ajit Mohan, Vice President and Managing Director, Facebook India said in a statement.
Facebook in 2017 introduced a programme for women-founded companies — SheLeads Tech — to support them with access to community, tools, mentorship and resources to succeed in building a business in technology.
“We love that the company is translating the power of online communities to expand economic opportunity for all of India, and especially women,” Mohan added.
Qccording to Vidit Aatrey, Co- Founder, Meesho, the company has grown from its humble beginnings at IIT to 15,000 suppliers and 2,000,000 resellers throughout India in just four years.
“We share a common goal with Facebook – to enable community and help small businesses grow. This commitment from Facebook will help us leapfrog towards our goal,” said Aatrey.
India is the third largest startup market globally and with its startup initiatives like SheLeads Tech, Code for the Next Billion, India Innovation Hub and more, Facebook has come to discover that the startup phenomenon is rapidly expanding to smaller cities. (IANS)
Facebook which accounts for 75 per cent of global ad spend that is likely to hit $110 billion by 2020 is nowhere near an immediate demise and government regulations would only strengthen the social networking giant in the short term, a new Forrester research has forecast.
However, Facebook’s push to become China’s WeChat — more than a messaging app and is full of capabilities to make life easier for its one billion users — would be its undoing.
Facebook‘s no-good-very-bad 2018 may have meant an overworked PR team but the social media behemoth is doing just fine.
It continues to report steady user and revenue growth: a 9 per cent year over year increase in users in Q4 2018 and a 30 per cent increase in revenue in the same time-frame.
“The three parties that could impact Facebook the most — users, brands and regulators — will move too slowly for it to feel any instant impact,” said Jessica Liu, Senior Analyst, Forrester.
The coming years won’t be easier, but the social media behemoth won’t suddenly collapse either, as many predict.
“But while Facebook’s short-term outlook might be fine, its long-term outlook is bleak,” Liu added
Despite constant negative news last year, Facebook continued to report strong quarter-
over-quarter user and revenue growth. Brands that mishandle their own users’ data and fail to inform them typically falter.
While these users and advertisers could affect change at the social media giant immediately, they won’t, thus allowing it to continue to defy the odds.
“Enacting and enforcing regulation takes so long that Facebook will be able to shore up its assets and unique advantages in the short term and eliminate any vulnerabilities before serious user, advertiser, or regulatory changes materialize,” Liu emphasised.
The social networking giant with over two billion users globally, is facing regulatory challenges as the Cambridge Analytica scandal has exposed its lapses of data privacy and security.
The downfall for Facebook, said Liu, would come with its desire to build an all-inclusive social media experience, as its CEO mark Zuckerberg is planning to merge all apps like Messenger, WhatsApp and Instagram into one.
“Facebook’s hope to recreate WeChat, China’s largest messaging app turned all-in-one portal
to the Internet, presents long-term challenges,” Liu added.
WeChat primarily operates in a single country’s political and regulatory environment.
“Facebook will need to tack on products and services to fulfill its one-app vision while global regulators threaten antitrust. It will also grapple with protecting user privacy globally while appeasing advertiser appetite for hypertargeting,” Liu noted.
As people become increasingly aware of social media’s harm, social media will lose its lustre.
“History has taught us that existing apps max out and then decline as users tire of the services or the company (like AOL, MySpace, Friendster). The Facebook app is already experiencing this; Instagram and WhatsApp will follow in a natural peak and then eventually decelerate, too,” Liu commented. (IANS)