Meesho secondary deal sees valuation dip; Tiger Global’s strategic interest

• ByStartupStory     |    March 8, 2024

Peak XV Partners (formerly Sequoia Capital India) and Tiger Global are reportedly in talks to acquire shares in SoftBank-backed ecommerce firm Meesho through a secondary deal. “Some angel investors and other early backers of Meesho are likely to sell shares worth around $200 million. The transaction is expected to occur at a valuation of $3.5-3.9 billion, representing a 20-30% decrease from Meesho’s previous valuation of $4.9 billion. This decline is in line with the norm for secondary transactions.

Tiger Global’s interest in Meesho comes amid its retreat from fresh investments in India and other markets due to the tech downturn. Meanwhile, other funds like Norwest Venture Partners are engaging in preliminary discussions with Meesho, while WestBridge Capital may increase its stake in the company. Additionally, Meta, an existing investor, is contemplating selling a portion of its stake, according to sources familiar with the matter.

In December, Meesho reported a significant reduction in losses for the fiscal year ending March 31, 2023, down to nearly half at Rs 1,675 crore, with operating revenue soaring by 77% to Rs 5,735 crore. “Amazon is entering Meesho’s territory with a new vertical offering low-priced, unbranded fashion and lifestyle products, known as Amazon Bazaar,” as per the sources. 

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