Meesho’s Early Investors Eye Stake Sale, Potential Valuation in $3-$3.5 Billion Range

Early investors in Meesho, a leading Indian e-commerce platform, are reportedly exploring divestment opportunities. Discussions are underway with potential buyers, including established investment firms WestBridge Capital and Norwest Venture Partners, as per a report by ET.

Valuation Negotiations and Investor Exits

The ongoing talks center around a potential transaction value between $3 billion and $3.5 billion, although this figure is not yet finalized. Sources familiar with the discussions reveal that early investors are primarily motivated by securing an exit from their holdings at this stage.

WestBridge Capital Seeks Increased Exposure

Interestingly, WestBridge Capital, already an investor in Meesho, has expressed interest in acquiring additional shares. This follows their successful secondary transaction in October 2023, where they purchased a stake from Meesho’s early backer, Venture Highway. This earlier deal allowed Venture Highway to generate a significant return on their investment, exceeding 50 times their initial stake.

Venture Highway Considers Full Exit

Venture Highway, which played a key role in Meesho’s early funding rounds, is reportedly contemplating selling its remaining 1% stake in the company during this current divestment process.

The outcome of these discussions will likely reshape Meesho’s shareholder base. The potential entry of new investors alongside the potential exit of early backers could usher in a new era of growth and strategic direction for the e-commerce unicorn.