Meesho's $500M funding round attracts several VC firms
Indian e-commerce platform, Meesho, is reportedly drawing attention from several venture capital firms for its ongoing funding round. Initially aiming to raise $300 million, the company is now considering increasing the round size to between $500-650 million. The primary use of this capital will be to manage tax obligations related to the company's return to India, with remaining funds allocated for other business purposes.
Tiger Global and Peak XV lead Meesho's investment round
The final round size is projected to be around $500 million, with Tiger Global and Peak XV Partners leading the investment. Other participants include SoftBank, WestBridge Capital, and Mars Growth Capital. Interestingly, Accel, a former supporter of Flipkart, had entered into discussions with Meesho but no agreement was finalized. This marks the second time a Flipkart investor has shown interest in Meesho.
Meesho's valuation drops to $3.9 billion amid funding round
The latest funding round places Meesho's value at $3.9 billion, marking a 20% decrease from its previous valuation of $4.9 billion in 2021. This follows Fidelity's earlier reduction of Meesho's valuation to $3 billion. The fundraising aligns with Meesho's strategic plans to acquire companies that complement its business and expand its customer base across various categories.
Meesho demonstrates profitability amid funding round
Founded in 2015 by Vidit Aatrey and Sanjeev Barnwal, Meesho posted a monthly profit of ₹4-5 crore in July 2023. The company significantly reduced its losses in FY23 and saw a 77% growth in revenue from operations. As it continues to explore growth opportunities and enhance its business capabilities, Meesho remains committed to maintaining its profitable trajectory.
