Meesho concludes $550 million funding round, eyes IPO

Multi-brand e-commerce platform Meesho has received new funding from investors Tiger Global, Think Investments, and Mars Growth Capital of between $250 million and $270 million to take its funding round total to approximately $550 million.

“The round has closed with a majority in secondary,” an anonymous source close to the development told ET Retail. “The company and the board earlier had discussed that the primary capital raise is largely to account for the merger, since it doesn’t want to dip into its existing cash reserve.”

The majority of the $550 million round was secondary and was carried out as the business eyes an initial public offering. In order to prepare for the IPO, Meesho has filed an application at Bengaluru’s National Company Law Tribunal to hold a reverse merger of its India business Fashnear Technologies with its US parent company Meesho Inc. 

“Meesho wants to file for IPO during the second half of the calendar year, but yes it’s contingent on the speed of the Bengaluru tribunal,” a source told the Economic Times. The 2024 financial year saw Meesho’s revenue increase by 33% year on year and its adjusted loss dropped by 97% to total Rs 53 crore. The business’ post-tax net loss totalled Rs 304 crore during the fiscal year.