Tiger Global and SoftBank to End Funding Winter with $300 Million Round in Meesho

• ByStartupStory     |    March 26, 2024

E-commerce platform Meesho is poised to raise a substantial $300 million from a diverse group of investors, marking a significant thaw in the investment climate in India. Among the backers are renowned global investors Tiger Global and SoftBank, who have notably refrained from investing in India for the past 18 months. This infusion of capital not only signifies a return to Indian investment for these giants but also heralds the end of a funding drought that has persisted in recent times.

“At Meesho, we are thrilled to have the support of such esteemed investors like Tiger Global, SoftBank, and others. This funding round underscores their confidence in our vision and ability to disrupt the e-commerce landscape in India,” remarked Meesho CEO, Vidit Aatrey.

The $300 million round, a rarity amidst the current funding environment, will also see participation from existing investors such as Peak XV Partners and Mars Growth Capital. Notably, this marks Tiger Global’s first major investment since the departure of Scott Shleifer, head of private equity, in November last year.

According to sources close to the development, Tiger Global and Peak XV Partners are leading the round with a combined investment of $150 million. Additionally, Peak XV, along with select limited partners, is poised to inject $70 million into the endeavor.

“While Tiger Global is a new addition to our investor roster, we are pleased to continue our partnership with Peak XV, who first backed us in 2018,” said Meesho co-founder and CTO, Sanjeev Barnwal.

Despite the impressive sum being raised, Meesho’s current valuation stands at $3.9 billion, representing a 20% decrease from its previous valuation of $4.9 billion during its last fundraising round in 2021. This adjustment follows a valuation cut by Fidelity to $3 billion earlier this year.

“Our valuation reflects the evolving dynamics of the market, and we remain steadfast in our commitment to delivering value to our customers and stakeholders,” added Aatrey.

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