Meesho Secured $275 Million Funding In A $600 Million Funding Round 

Meesho is a Bengaluru-based company and a known e-commerce platform. This month, Meesho was in the news as they were looking to expand the size of its upcoming funding round. As of May 11,  Meesho has reportedly closed its first funding round at $275 million. According to an ET report, the US  Securities and Exchange Commission disclosed a share transfer within Meesho’s US parent company. Meesho has already closed the first round of funding with its existing investors and new investors.

The company is still finalizing its allocation for the rest of the round. This funding round comes a month after Meesho was looking to expand the size of its upcoming funding round from $300  Million to $500 million to $600 million. Meesho aims to finalize this larger funding round and use it in its expansion and innovation initiatives. The company was planning to increase the size of its upcoming funding round, set initially at $300 million, to a range between $500 million and $650  million. Over the years, Meesho has demonstrated remarkable success in fundraising, gaining $1.36 billion in investments since its establishment in 2015. 

According to another report, Meesho is constantly growing, and having a low monthly burn significantly over the last year has drawn investors’ interest. The last peak valuation almost reached $5  billion. According to a person monitoring the deal closely, The board and investors suggested that the company should focus more on raising primary capital for large-stage deals as there will be a tax payout when it has to move domicile back to India for further IPO plans. The main idea is not to use existing capital for operations and competitive reasons.  

Meesho raised the primary capital of $570 million in September 2021. One of the early investors of  Flipkart was also said to be participating in a funding round, which is still ongoing. According to another report, Meesho is constantly growing, and having a low monthly burn significantly over the last year has drawn investors’ interest.

The last peak valuation almost reached $5 billion. According to a person monitoring the deal closely, The board and investors suggested that the company should focus more on raising primary capital for large-stage deals as there will be a tax payout in the future when it has to move domicile back to India for further IPO plans. The main idea is not to use existing capital for operations and competitive reasons.  

Meesho and Groww are both Y Combinator alumni who raised initial capital through a US holding company from Silicon Valley investors. Groww completed moving the domicile back to India in March 2024. Depending on the merger process, the company has to pay taxes in India or the US to reverse-flip its holding companies. The total amount one needs for this whole process is huge, which is one of the main reasons Meesho raises primary capital. 

Conclusion

Meesho has secured the first part of a larger financing round, closing at $275 million. The  Bengaluru-based company, known for competing with Amazon India and Flipkart, is currently finalizing the details for the broader round, which could potentially value the company at up to $3.9 billion. With existing and new investors participating in this initial phase, Meesho still determines the allocation for the remaining funding round. This milestone follows Meesho’s recent plans to expand the size of its funding round, indicating strong investor interest in the company’s growth prospects. To date, Meesho has raised $1.36 billion since its valuation in  2015.

athulya V

Experienced digital marketer adept at developing and implementing strategies to enhance brand visibility and drive conversions. Proficient in SEO, SEM, social media with a keen eye for analyzing data and optimizing campaigns for maximum impact. Passionate about leveraging technology and creativity to deliver measurable results and exceed client expectations.