E-commerce platform Meesho is set to raise fresh capital from Tiger Global and SoftBank, sources have confirmed to CNBC-TV18. The investment details remain undisclosed.
However, as per a report by Moneycontrol, the company is looking to raise $300 million. Existing and other investors, such as Peak XV Partners and Mars Growth Capital, will also participate in the funding round. If the investment comes through, this will mark the return of Tiger Global and Softbank in India, which have not made any meaningful investments in the country since the beginning of funding winter in 2022.
Meesho, backed by Meta, Peak XV, Prosus Ventures, B Capital, and SoftBank, is a leading player in the social commerce startup landscape and ranks among the fastest-growing e-commerce startups in India. According to a recent report by AllianceBernstein, Meesho's current Gross Merchandise Value (GMV) run rate exceeds $5 billion. According to sources, the fundraise is aimed at shifting Meesho's domicile from Delaware to India. The move is similar to $1 billion that PhonePe paid while flipping its base from Singapore to India in January 2023 ahead of its IPO. On March 13, the e-commerce marketplace had announced an Employee Stock Ownership Plan (ESOP) buyback programme valued at ₹200 crore, marking the largest buyback initiative in the company's history. This move aimed to extend benefits to nearly 1,700 past and present employees. The company had previously conducted buyback programmes in February 2020, November 2020, and October 2021, amounting to a total of $11.5 million. Additionally, Meesho achieved profitability in July 2023 and continues to maintain profitability and positive cash flow.
(Edited by : Anand Singha)
