Peak XV, Tiger Global Eyeing Stake In Meesho

Meesho Removes Lawrence Bishnoi Tshirts From Site After Backlash

SUMMARY

As per a report, certain angel investors and early backers of Meesho are anticipated to offload shares valued at approximately $200 Mn

The transaction is expected to occur at a valuation ranging between $3.5 Bn to $3.9 Bn

Meta, an existing investor in Meesho, may consider selling a portion of its stake

Peak XV Partners (formerly Sequoia Capital India) and Tiger Global are among a clutch of investors in the fray eyeing for a stake in ecommerce unicorn Meesho via a secondary transaction.

As per ET’s report, some angel and early investors of Meesho may offload shares worth around $200 Mn, which is expected to value the deal between $3.5 Bn and $3.9 Bn based on the final terms.

Tiger Global’s involvement might be comparatively smaller, whereas Peak XV is progressing in advanced negotiations as it seeks a larger pie of the shares available for sale.

Meta, an existing investor in Meesho, may also consider selling a portion of its stake. However, the final decision on this potential sale is yet to be made by the tech giant.

Besides, funds like Norwest Venture Partners are also in early talks with the ecommerce unicorn.

However, Meesho will not receive any funds from the secondary share sale. The company, previously valued at $4.9 Bn, is expected to undergo a valuation cut of 20-30%.

Earlier this year, it was reported that angel investors and early institutional shareholders of Meesho are reportedly in discussions with potential investors to divest their stake.

Last year, investment firm WestBridge Capital acquired a stake in the company via a secondary transaction from its early and long-term backer Venture Highway, which sold a part of its stake scoring over 50X return.

Founded in 2015 by Vidit Aatrey and Sanjeev Barnwal, Meesho counts SoftBank, Peak XV, Fidelity Investments, Prosus & Naspers and Meta as among its marquee investors.

The startup, once hailed as the poster child of social ecommerce, made a strategic pivot in 2022 to become a marketplace. This move places the company in direct competition with industry giants such as Flipkart and Amazon.

Meesho reported an operating revenue of INR 5,735 Cr in FY23, a 77% increase over INR 3,232 Cr in the previous fiscal year, it said in a blog.

Fashnear Technologies, the parent entity of Meesho, reported a net loss of INR 1,675 Cr in FY23, a 48% drop from INR 3,248 Cr in the previous year.

However, Meesho is yet to file its financial statements for the financial year 2022-23 (FY23) with the Ministry of Corporate Affairs (MCA).

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