WestBridge Capital is in superior phases of talks to buy shares of Meesho within the secondary market, in response to two individuals accustomed to the matter, because the high-profile enterprise agency appears to be like to broaden its guess on e-commerce.
The funding agency, with a two-decade historical past of specializing in startups in India and Southeast Asia, is partaking with a number of Meesho buyers together with Enterprise Freeway to purchase out their stake within the social commerce startup, the individuals stated. The deliberations are ongoing and present phrases worth the Indian startup at a reduction of greater than 25% over the earlier valuation, one of many individuals stated.
Meesho declined to remark. Enterprise Freeway and WestBridge Capital didn’t reply to requests for remark.
Meesho — which counts Meta, YC, Prosus, Elevation and Peak XV amongst its backers — was valued at about $4.9 billion in a spherical it closed within the second half of 2021. It’s not unusual for buyers to promote stakes in privately held corporations at discounted costs. Constancy, which co-led Meesho’s final spherical, continues to worth Meesho at over $4.5 billion, in response to the U.S. asset supervisor’s month-to-month disclosures.
Enterprise Freeway initially backed Meesho eight years in the past, when it invested about $100,000 that valued the startup at about $1 million. The agency, whose 5% stake in Meesho is price about $250 million on the earlier valuation, has been a long-term backer of Meesho, investing in almost all subsequent rounds. It has expressed an curiosity in making a full exit on the startup.
India’s e-commerce market within the calendar yr 2022 by GMV figures (Information: Jefferies)
WestBridge’s curiosity in Meesho follows the startup dramatically bettering its funds in latest quarters. Meesho stated final month that it was worthwhile on the consolidated PAT stage within the month of July. Meesho, which has created a distinct segment by competitively priced, numerous and unbranded assortment of merchandise, had a GMV of $4.5 billion within the calendar yr 2022.
“Meesho has a number one place throughout a number of vogue & way of life classes,” Jefferies wrote in a word to purchasers earlier this yr. “Throughout the early years, Meesho primarily focussed on attire, however has diversified into different way of life classes over time because it developed into a really horizontal pure- play market. Immediately, almost half of its GMV comes from non-apparel classes.”
WestBridge can also be an investor in DealShare, a startup that initially leveraged social platforms for commerce. It’s at present grappling with some existential issues about its enterprise. The deal, if it materializes, would even be exceptional as a result of WestBridge tends to put money into startups at their Sequence B-D rounds, normally making an entry at a valuation under $250 million.
