Meesho Revamps Board, Elevates Key Shareholders Ahead of $1 Billion IPO

E-commerce platform Meesho has undergone a board-level restructuring in preparation for its upcoming initial public offering (IPO), according to sources cited by Moneycontrol. The changes aim to grant more influence to major shareholders, while investors with comparatively smaller stakes have stepped back from board roles.

Investment Representatives Step Down

Previously, Meesho’s board included investor representatives from Elevation Capital, Peak XV Partners, Prosus, and SoftBank, regulatory filings show. Recently, two of those four—SoftBank and Prosus—have vacated their board seats.

Sarthak Misra, Partner at SoftBank Investment Advisers (holding under 10% in Meesho), and
Ashutosh Sharma, India Head - Investments & M&A at Prosus Ventures (holding 12%),
have stepped down, sources confirmed.

Though Prosus and SoftBank collectively hold around 22%, this is still less than the combined ownership of Elevation Capital and Peak XV Partners.

Who Remains on Meesho’s Board?

• Peak XV Partners, with 12.5% stake, continues to be represented by Mohit Bhatnagar (Managing Director).

• Elevation Capital, Meesho’s largest shareholder with 13.5% stake, retains Mukul Arora (Co-Managing Partner) on the board.

Despite exiting the board, both Prosus and SoftBank remain key investors in the company.

Board Additions and Other Changes

In addition to Misra and Sharma’s resignations, Kalpana Morparia, former Chairperson of JP Morgan (South and Southeast Asia), has also exited. She is being succeeded by Kimsuka Narasimhan, a former senior executive at PepsiCo and Kimberly Clark (Asia).

The updated board now includes:

• Founders: Vidit Aatrey and Sanjeev Barnwal

• Investors: Mohit Bhatnagar (Peak XV), Mukul Arora (Elevation Capital)

• Industry Experts: Kimsuka Narasimhan, Hari S Bhartia (Jubilant Bhartia Group),
  Rohit Bhagat (PhonePe non-executive Chairman), and Surojit Chatterjee (CEO of AI startup Ema, based in San Francisco).

Exit Strategy: Common Move for IPO-Bound Companies

This move aligns with SoftBank’s typical practice of stepping down from boards ahead of IPO filings, such as in the case of Delhivery and others, to avoid being tagged as a promoter or facing post-IPO share lock-ins.

“Such moves, especially at Prosus and SoftBank, are common in the run-up to the IPO of portfolio companies,” the report noted.

Meesho Flip-Back and $288 Million Tax Bill

The board revamp comes shortly after Meesho’s flip-back from Delaware to India, a move reportedly accompanied by a $288 million tax payment as part of the re-domiciling process.

Meesho’s IPO Plan: $1 Billion Raise, $10 Billion Valuation

Sources indicate that Meesho is preparing to raise up to $1 billion through its IPO, which is expected to value the company at around $10 billion.

Summary of Key Board Changes

Conclusion

Meesho’s recent board overhaul signifies a strategic realignment as the company prepares for one of the most anticipated IPOs in India’s startup ecosystem.

By streamlining its board structure to empower majority stakeholders like Elevation Capital and Peak XV Partners, while seeing the exit of smaller investors like SoftBank and Prosus from board positions, Meesho is aligning its governance with industry norms followed by IPO-bound companies.

The inclusion of seasoned professionals like Kimsuka Narasimhan and Surojit Chatterjee also brings diversified expertise to the board, enhancing corporate governance ahead of public listing.

This move comes shortly after Meesho’s re-domiciling from the U.S. to India and the payment of a $288 million tax, further indicating its commitment to long-term India-based operations.

With a target of raising up to $1 billion at a valuation of approximately $10 billion, Meesho’s reshuffled leadership structure sets a solid foundation as it transitions into the next phase of corporate growth and public accountability.