Meesho's Funding Round Swells as VC Firms Show Interest, Valuation Dips

16 Apr 2024 , 01:40 PM

Multiple venture capital (VC) firms are showing interest in participating in Meesho’s ongoing funding round, according to sources familiar with the matter.

Meesho, an Indian e-commerce platform, is reportedly planning to increase its round size from $300 million to around $500-650 million. The primary capital of approximately $300 million will be utilized to settle taxes resulting from relocating the company’s base back to India, while the rest will constitute the secondary component.

Talks between Meesho and Accel, an early backer of Flipkart, have not led to an agreement, despite engagement in recent months.

Tiger Global and Peak XV are leading the ongoing round, with participation from SoftBank, WestBridge Capital, and others as previously reported. Meesho’s valuation in this round stands at $3.9 billion, a decrease from its previous $4.9 billion valuation in 2021. The company aims to expand its customer base and explore acquisitions to enhance its business capabilities across various categories.

Founded in 2015, Meesho has shown profitability since July 2023, following significant improvements in financial performance during FY23. Meesho operates as an online shopping platform, facilitating trade between suppliers, resellers, and customers, primarily through social media platforms like Facebook and Instagram. In 2024, Meesho introduced Valmo, a logistics marketplace, to provide shipment services to sellers through a network of logistics providers.

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