The new funding round values Meesho at $3.9 billion, which is 20% less than its previous valuation of $4.9 billion in 2021. Once finalized, Meesho’s investment round will be one of the few large rounds that have materialized in the past year. Peak XV made an investment in the e-commerce business in 2018, even though Tiger Global would be the newest addition to Meesho’s cap table.
Ecommerce unicorn Meesho is apparently planning to raise $300 million (approximately INR 2,499 crore) in a new investment round from a number of investors, including Tiger Global and SoftBank.
According to Moneycontrol, existing and new investors, including Peak XV Partners and Mars Growth Capital, will also participate in the fundraising effort.
The $300 million funding deal, which is unusual in the current funding environment, according to the article, not only represents Tiger Global’s comeback to investing in India but also the investor’s first significant round since chief private equity officer Scott Shleifer resigned in November of last year.
Once completed, Meesho’s funding round will be one of the few major rounds to occur in the past year.
Tiger Global and Peak XV Partners will lead Meesho’s latest round, investing $150 million. Peak XV, along with some of its limited partners (LPs), wants to invest roughly $70 million, according to the story, citing individuals close to the
Peak XV made an investment in the e-commerce business in 2018, even though Tiger Global would be the newest addition to Meesho’s capital table.
The new funding round values Meesho at $3.9 billion, which is 20% less than its previous valuation of $4.9 billion in 2021. This fall followed Fidelity’s valuation cut to $3 billion, as reported by Moneycontrol in January.
SoftBank will contribute $30 million of the remaining $150 million, as will Singapore’s Mars Growth Capital, the United Kingdom’s Think Ventures, and other investors. SoftBank, an existing investor, will boost its investment to keep its ownership in the company, while Mars and Think will become first-time investors in Meesho.
“Meesho is in the process of flipping its base back to India from Delaware and a bulk of the fresh capital will be used to pay the relevant taxes ahead of its planned IPO,” according to the report
According to the article, Meesho’s $300 million round will be primarily made up of primary capital, with a tiny part of secondary cash being utilized to buy out early investors. Tracxn, a private markets data source, reports that Meesho’s early supporters include Venture Highway, Meta (previously Facebook), and Y Combinator.
Vidit Aatrey and Sanjeev Barnwal founded Meesho in 2015, and the company claims to have over 15 lakh retailers on its ecommerce platform across India. The firm also claims to have over 140 million yearly transactional users.
The e-commerce start-up introduced an employee stock ownership plan (ESOP) buyback scheme earlier this month for INR 200 Cr. or roughly $25 Mn. The business said that it is the largest such ESOP repurchase campaign it has ever done, benefiting around 1,700 former and current employees.
Meesho’s investors include DST Partners, Elevation Capital, Facebook, and Prosus. Its parent company, Fashnear Technologies, reported a 48% decrease in net loss to INR 1,675 crore in FY23, down from INR 3,248 crore the previous year.
