As it gears up for an IPO, e-commerce platform Meesho has secured a new US $550 million in funding, with contributions from new investors like Tiger Global and existing backers such as Peak XV and WestBridge Capital, according to reports.
Meesho raises US $550 million
E-commerce platform Meesho has successfully secured an additional US $550 million in funding amid its preparations for an initial public offering (IPO). This funding round saw participation from new investors such as Tiger Global, alongside existing supporters like Peak XV and WestBridge Capital, as reported.
This financing round, which features a notable secondary component, places the company’s valuation at approximately US $3.9 to 4 billion, according to the report.
In parallel, Meesho has commenced the process of relocating its domicile to India by submitting an application to the National Company Law Tribunal (NCLT) for a reverse merger involving its Indian subsidiary and its US parent company. This strategic decision is vital for the company’s anticipated IPO, which is projected for 2026, as indicated in the reports.
Meesho plans to submit its draft IPO documents in the latter half of 2025, pending timely approval from the NCLT. This initiative could position Meesho as one of the first horizontal e-commerce firms to be listed on Indian stock exchanges.
The primary capital raised in this funding round is intended to address the significant tax obligations arising from the reverse merger.
In recent years, Meesho has exhibited robust growth, with a 33 percent increase in revenue for FY ’24, reaching US $881 million (Rs. 7,615 crore). The company has also made considerable progress in reducing its losses and achieving positive operating cash flow.
This strategic move by Meesho reflects a broader trend among Indian startups to relocate their domiciles to India and pursue IPOs on domestic exchanges. Other notable companies, including Flipkart, Groww, and PhonePe, are also engaging in similar efforts.
