Some angel traders and different early backers of Meesho are more likely to promote shares value round $200 million, these folks mentioned. The transaction is more likely to happen at a valuation of $3.5-3.9 billion, relying on the ultimate phrases, they added.
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Whereas Peak XV is an early investor in Meesho, Tiger’s discussions assume significance amid a pullback by the New York-based fund from making contemporary investments in India and different markets.
“Tiger’s participation could also be comparatively smaller however Peak XV is in superior levels of talks,” one of many folks mentioned. “Peak XV is trying to take an even bigger pie of the shares on the block,” one other particular person mentioned.
ETtechTech main Meta, an current investor in Meesho, could look to promote part of its stake, these folks mentioned. However the Fb and WhatsApp proprietor has but to make a closing choice, they added.
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Meesho is not going to get any funds from the secondary share sale.
Meesho, which was final valued at $4.9 billion, will see its valuation being lower by 20-30%. That is typical of secondary transactions. ET first reported in regards to the financing spherical at Meesho on January 2.
A spokesperson for Meesho declined to remark, citing firm coverage. Emails despatched to Peak XV, Meta and Tiger World didn’t elicit any response.
ETtechIndividuals acquainted with the discussions mentioned different funds like Norwest Enterprise Companions are additionally in discussions with Meesho, however these talks are preliminary.
In October final yr, Meesho’s first institutional investor, Enterprise Freeway, offered part of its stake within the firm to WestBridge Capital. Individuals within the know mentioned the fund desires to make a whole exit from the ecommerce platform, which focuses on low-priced merchandise.
WestBridge Capital, which backs each non-public and public market firms, could purchase extra shares in Meesho, ET had reported earlier in January.
In December, Meesho mentioned its loss for the yr ended March 31, 2023 narrowed to just about half at Rs 1,675 crore, whereas working income grew 77% to Rs 5,735 crore. For the primary half of FY24, the web market mentioned its working income rose 37% year-on-year to Rs 3,521 crore, with a 90% discount in loss to Rs 141 crore.
ETtechMeesho’s success within the low-end section has most not too long ago led to Amazon India planning an analogous enterprise on its market. ET reported on February 21 that Amazon India was readying to launch a brand new vertical that includes low-priced, unbranded style and life-style merchandise, referred to as Amazon Bazaar. Walmart-owned Flipkart’s Shopsy is the opposite main participant within the house competing in opposition to Meesho.
Based by Vidit Aatrey and Sanjeev Barnwal in 2015, Meesho doesn’t cost commissions from its sellers, not like Amazon and Flipkart. The corporate earns income by means of promoting and by providing logistics companies to the sellers on its platform.
