Meesho Gains $250 Million Funding From New Investors
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Meesho, an e-commerce platform, has received fresh funding between $250 and $270 million. This brings its total financing to $550 million, according to sources. The funding came from new investors, including Tiger Global, Think Investments and Mars Growth Capital. A significant part of this funding involved secondary transactions, according to those familiar with the deal.
The Bengaluru-based company, backed by SoftBank and Prosus, has applied with the National Company Law Tribunal (NCLT) in Bengaluru. The filing is for a reverse merger that will combine its India unit, Fashnear Technologies, with its U.S. parent firm, Meesho Inc., according to sources aware of the move. This merger is a step toward preparing for an initial public offering (IPO).
Meesho Prepares For Initial Public Offering This Year
Meesho aims to file its draft IPO papers by the second half of 2025. A listing may take place in 2026, depending on how quickly the Bengaluru tribunal approves the merger. If successful, Meesho will become one of the first horizontal e-commerce platforms to list on Indian stock exchanges.
Existing investors, including Peak XV and WestBridge Capital, have joined this funding round. A portion of the primary capital will likely go toward tax payments related to the reverse merger. According to reports, the primary funds will mostly be used for costs linked to the merger. This plan avoids utilizing the company’s existing cash reserves.
Meesho’s valuation in this funding round is now around $3.9-4 billion. This is slightly lower than its previous peak valuation of $5 billion, according to sources familiar with the company’s finances.
Meesho Reports Growth Amid IPO Plans
The company has also been in talks with other growth funds for additional investments. In May, regulatory filings revealed a $275 million share sale. However, the firm has not officially announced this information.
In 2024, Meesho reported a 33 percent growth in revenue, reaching ₹7,615 crore. The company also reduced its adjusted loss to ₹53 crore, a 97 percent improvement compared to the previous year. Meesho achieved positive operating cash flow for the first time. After taxes, the company’s net loss stood at ₹304 crore, according to filings with the Registrar of Companies.
Meesho has introduced new offerings like Meesho Mall over the past year. Unlike its main marketplace, which does not charge sellers, Meesho Mall focuses on brands. It earns money through advertising, logistics services, and commissions.
With its strong growth and new plans, Meesho is set to enter the public market. The company’s IPO aligns with a trend of Indian startups aiming to list their shares as digital businesses gain more attention globally. Experts say this move could shape the future of e-commerce in India.
