Meesho Hits Milestone: Secures $275 Million in First Close of Larger Funding Round

Meesho's recent funding round closure, ongoing discussions about valuation, and potential IPO plans reflect its strategic growth trajectory. With strong investor backing and plans for expansion, Meesho aims to solidify its position in India's ecommerce landscape.

Funding Round Closure and Share Transfer:

• Meesho, an ecommerce platform, reportedly closed a $275 million funding round through a combination of primary and secondary share sales.

• A regulatory submission to the US Securities and Exchange Commission (SEC) disclosed a share transfer within Meesho's US parent company, without detailed information.

Tranche of Larger Financing Round:

• The $275 million funding marks the first tranche of a larger financing round amounting to $600 million, which Meesho aims to conclude.

• The company is still finalizing details for the broader round's valuation, which could be up to $3.9 billion, pending the round's closure.

Involvement of Existing and New Investors:

• Existing investors, along with new investors, participated in the first part of the funding round.

• Meesho is still finalizing allocation for the remainder of the funding round, indicating ongoing investor interest.

Increase in Funding Size:

• Reports suggest that Meesho expanded the size of its funding round from $300 million to $500-$650 million, incorporating a primary component.

• This increase in the funding size reflects investor confidence and potential growth opportunities for Meesho.

Total Funding Raised and Company Overview:

• Since its inception in 2015, Meesho has raised a total of $1.36 billion, including funds from secondary sources.

• Founded by Vidit Aatrey and Sanjeev Barnwal, Meesho boasts over 1.5 million sellers on its platform from across India and claims to have more than 140 million annual transacting users.

Investors and Future Plans:

• Meesho's investors include DST Partners, Elevation Capital, Facebook, and Prosus, indicating strong backing from prominent firms.

• The company is actively discussing plans to reverse flip its US parent company, potentially linked to its IPO plans in India, although final decisions are pending.

Groww's Domicile Shift and Industry Trends:

• Separately, fintech firm Groww completed its domicile shift back to India in March 2024, becoming the second major startup after PhonePe to do so.

• Other Indian startups like Zepto, RazorPay, and Pine Labs are also considering reverse flips, indicating a trend in the industry.