Meesho, the ecommerce platform, has successfully closed a $275 million funding round through a mix of primary and secondary share sales.
According to a report by ET, a regulatory filing with the US Securities and Exchange Commission (SEC) revealed a share transfer within Meesho’s US parent company, albeit without additional specifics.
This constitutes the first tranche of a larger financing round of $600 million that the Bengaluru-based company aims to conclude, as per the report.
A source familiar with the matter informed ET that the specifics regarding the broader round’s valuation are still under negotiation. While it could reach up to $3.9 billion, the final figure will be determined once the round is completed.
The report, citing sources, stated that Meesho has concluded the initial phase of the funding round, with both existing and new investors participating. Allocation for the remaining portion of the funding round is still being finalized by Meesho.
This development comes after reports surfaced a month ago suggesting that Meesho was seeking to expand the size of its upcoming funding round to $500-$650 million from the previously set $300 million.
Continue Exploring: Meesho to upsize next funding round to $500-$650 Million
In March, reports surfaced indicating Meesho’s plans to raise $300 million (approximately INR 2,499 crore) in a new funding round. This investment entailed participation from a consortium of investors, including Tiger Global and SoftBank.
Nonetheless, sources familiar with the matter have indicated that the overall round has expanded in size, with the inclusion of a primary component.
According to ET, Meesho has amassed a total of $1.36 billion in funding since 2015, which includes funds from secondary sources.
Continue Exploring: Meesho in advanced talks to raise $300 Million from Tiger Global, SoftBank, and other investors
Established in 2015 by Vidit Aatrey and Sanjeev Barnwal, Meesho asserts its presence with a network of over 1.5 million sellers spanning India on its ecommerce platform. The startup also boasts of engaging with over 140 million annual transacting users.
DST Partners, along with Elevation Capital, Facebook, and Prosus, is among Meesho’s investors.
In the meantime, Meesho is actively involved in talks regarding the reverse flip of its US parent company, a step tied to its intentions for an IPO in India. However, the company’s plans remain unsettled for now.
Additionally, fintech firm Groww has disclosed that it finalized the relocation of its domicile back to India as of March 2024. This move positions Groww as the second significant startup, following PhonePe, to transition its domicile to India.
Numerous other Indian startups, such as Zepto, RazorPay, and Pine Labs, are also exploring the option of reverse flipping.
Continue Exploring: Meesho announces its largest ever ESOP buyback, allocating INR 200 Cr for employees
