Meesho Secures $275 Million in Funding, Eyes Further Expansion

Meesho has successfully closed a $275 million funding round, which includes both primary and secondary share sales, according to sources familiar with the matter.

The funding, orchestrated through a mix of existing and new investors, forms the initial tranche of a larger financing endeavor targeting a substantial $600 million, with further details on valuation yet to be finalized, an insider shared.

“Meesho has closed the first part of the funding round with existing investors and with new investors also joining the round,” said sources privy to the development. “It (Meesho) is still finalising the allocation for the rest of the funding round.”

This funding round underlines Meesho’s robust growth trajectory, having now raised an impressive total of $1.36 billion since its inception in 2015.

Meesho’s ongoing funding discussions have been gaining momentum since January, reflecting a strategic push towards optimizing its financial structure and preparing for potential future developments, including a potential IPO.

The company’s overarching ambition is to consolidate its standing in the market amidst escalating competition, buoyed by sustained operating growth and a significant reduction in monthly expenditure over the past year.

Reflecting on the significance of this funding round, an industry expert stated, “Meesho’s ability to sustain operating growth while having reduced its monthly burn significantly over the last year has drawn investor interest.”

This development comes against the backdrop of heightened investor interest in late-stage deals and reflects Meesho’s strategic foresight in positioning itself for further growth and expansion in India’s dynamic e-commerce landscape.

Additionally, Meesho is actively exploring a potential reverse flip of its US parent company, a move intertwined with its long-term aspirations for an IPO in India. The company is currently engaged in discussions to solidify its plans in this regard.

Fintech players like Groww have recently completed similar transitions, underlining a broader trend of Indian startups seeking to domicile back to India, often in preparation for public listings and to navigate regulatory frameworks.