Meesho raises US$275m at US$3.9bn valuation

Social commerce platform Meesho has raised $275 million in an ongoing funding round, as revealed by a regulatory filing with the US Securities and Exchange Commission (SEC). The funding came from existing investors including SoftBank, Prosus, Elevation Capital and Peak XV Partners.

Transaction snapshot

  • Deal value: US$275 million
  • Deal multiples: N/A
  • Deal type: Venture funding
  • Investors: SoftBank, Prosus, Elevation Capital, Peak XV Partners

The latest funding valued Meesho at $3.9 billion, with reports indicating the company may increase the round size to $500-600 million. The SEC filing also mentioned a share transfer at Meesho's US parent firm, but no further details were provided.

In January 2023, global investment firm Fidelity marked down the value of its holding in Meesho to $3.5 billion. The e-commerce platform counts Meta, Peak XV, Prosus Ventures, B Capital, and SoftBank among its investors, and its current gross merchandise value (GMV) run rate exceeds $5 billion.

Meesho's recent $275 million fundraise is part of a larger ongoing round, with the company aiming to close the round at around $600 million. A source told the Economic Times that the valuation details are still being finalised and will be determined once the round closes.

The last time Meesho raised funds was in 2021, securing $570 million in a round led by Fidelity and B Capital. It was last valued at $4.9bn which means a 30% cut in its valuation. Since its founding in 2015, the Bengaluru-based company has raised a total of $1.36 billion.

In related news, Meesho is reportedly considering shifting its domicile to India and is exploring options to raise additional funds to cover the increased taxes associated with the move. This follows a trend of Indian-origin companies, such as Groww, relocating their domicile from Singapore to India.

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