Meesho Secures $250-270M Funding as New Investors Join, Valuation Drops to $3.9-4B
Ecommerce platform Meesho has reportedly closed a funding round of $250-270 million, bringing new investors like Tiger Global, Think Investments, and Mars Growth Capital onto its cap table. A significant portion of this round consists of secondary share sales, according to sources cited in an ET report.
With this latest development, Meesho’s total fundraising in the ongoing round has reached approximately $550 million (₹4,750.9 crore). This comes as the company works towards solidifying its financial and operational position, ahead of a much-anticipated public offering.
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Reverse Flip and Merger Plans
After discussions over the past year about shifting its legal domicile back to India, Meesho has filed an application with the National Company Law Tribunal (NCLT) in Bengaluru to re-register under its Indian entity, Fashnear Technologies. This reverse flip is seen as a critical step in preparing for its IPO plans.
Sources familiar with the matter also revealed that part of the newly raised primary capital will go towards covering tax liabilities associated with the reverse merger.
Investors and Valuation Update
Existing backers such as Peak XV and WestBridge Capital participated in the round alongside the new investors. A source quoted in the report mentioned, “The primary raise is primarily to cover the costs of the merger. The company has no plans to dip into its current cash reserves for this purpose.”
The funding deal values Meesho at approximately $3.9-4 billion, reflecting a 20% decline from its previous valuation of $4.9 billion. This dip in valuation follows a similar pattern seen across many growth-stage startups amid challenging market conditions.
Funding History and Business Growth
This isn’t Meesho’s first major funding milestone this year. In May 2024, the company raised $275 million through a combination of primary and secondary share sales. Founded in 2015 by Vidit Aatrey and Sanjeev Barnwal, Meesho has grown rapidly, boasting a network of over 15 lakh sellers and more than 140 million annual transacting users.
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Meesho’s leadership believes these strategic moves will strengthen its position in India’s competitive ecommerce landscape, as it continues to focus on empowering small businesses and driving digital commerce adoption across the country.
