Meesho Secures $275 Million From Existing Backers in Latest Funding Round
Meesho, a rapidly growing e-commerce platform, has recently announced a significant financial milestone, securing $275 million in capital from its existing investors. The noteworthy roster includes major market players like SoftBank, Prosus, Elevation Capital, and Peak XV Partners. This funding is a portion of a larger financing round that Meesho is currently navigating through.
This development was initially reported by Moneycontrol, which highlighted that Meesho’s aspiration to raise $300 million has attracted even greater interest from investors, suggesting a possible increase in the round size to between $500 million and $650 million. As discussions progress, the final figure is anticipated to be determined accordingly.
The latest funds influx is a blend of debt and equity. It notably marks the return of Tiger Global as an investor in Meesho, after a period of inactivity, investing in the company once again. A significant portion of the fresh capital, approximately $300 million, is earmarked for tax obligations related to the company’s strategic decision to relocate its base from Delaware back to India in preparation for a potential Initial Public Offering (IPO) in India. The balance will go towards secondary transactions as has been previously reported.
With this round of funding, Meesho’s valuation is pegged at $3.9 billion, reflecting a 20% decrease from its earlier valuation of $4.9 billion during its 2021 fundraising efforts. The revaluation follows a January report by Fidelity, which adjusted Meesho’s valuation to $3 billion.
The funding is a testament to the existing investors’ confidence in Meesho, despite adjustments in valuation, emphasizing their belief in the company’s growth trajectory and business model. As the e-commerce platform continues to expand its footprint, this capital injection is poised to fuel its ambitions and aid in reaching new milestones, setting the stage for its future endeavors.
