Meesho Secures $250-270 Million Funding in Secondary Round; Plans IPO by 2026
- ByStartupStory | January 27, 2025
Bengaluru-based ecommerce giant Meesho has reportedly closed another $250-270 million funding round, with participation from new investors such as Tiger Global, Think Investments, and Mars Growth Capital, according to a report by The Economic Times (ET). A significant portion of the funding was through secondary share sales.
With this latest capital infusion, the total funding raised in the ongoing round has reached approximately $550 million (around INR 4,750.9 crore), as per the report citing sources familiar with the matter.
In a strategic move, Meesho has filed an application with the National Company Law Tribunal (NCLT), Bengaluru, to shift its domicile to its Indian unit, Fashnear Technologies, a step that will facilitate its future plans of going public. Sources further mentioned that the company aims to file its draft IPO papers in the second half of 2025, with a potential listing slated for 2026, contingent on the NCLT’s approval timeline.
The latest funding round witnessed participation from existing investors, including Peak XV and WestBridge Capital, with a portion of the primary capital expected to be allocated towards covering tax obligations related to the reverse merger.
“Yes, the round has closed with a majority in secondary. The company and the board earlier had discussed that the primary capital raise is largely to account for the merger, since it doesn’t want to dip into its existing cash reserve,” the report quoted a source as saying.
The deal is expected to value Meesho at approximately $3.9-4 billion, reflecting a 20% decline from its previous valuation of $4.9 billion. Notably, Meesho had previously secured $275 million in funding through a mix of primary and secondary share sales in May 2024.
Founded in 2015 by Vidit Aatrey and Sanjeev Barnwal, Meesho has rapidly expanded its reach, claiming over 15 lakh sellers on its platform and more than 140 million annual transacting users. The company boasts a strong investor portfolio, including DST Partners, Elevation Capital, Facebook, and Prosus.
In terms of financial performance, Meesho has significantly improved its bottom line, narrowing its net loss by 81.8% to INR 304.9 crore in FY24, compared to INR 1,675 crore in the previous fiscal year. Additionally, its operating revenue surged by 32.8% to INR 7,614.9 crore in FY24, up from INR 5,734.5 crore in FY23.
The report suggests that Meesho is gearing up for a major strategic shift with its planned IPO, expected in the next couple of years. The company’s efforts to streamline its operations and financials indicate a strong focus on achieving long-term sustainability and market expansion.
Inc42 has reached out to Meesho for comments on the recent developments, and the story will be updated upon receiving a response.
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