Meesho’s early investors look to divest stakes

A number of e-commerce platform Meesho’s early investors are looking to divest their stakes in the business as firms including WestBridge Capital and Norwest Venture Partners are looking to invest. Talks are currently underway for transactions at a value of between $3 billion and $3.5 billon. 

“WestBridge [Capital] has indicated it wants to buy more in Meesho and Norwest [Venture Partners] has also held talks,” said an anonymous source close to the development, ET Tech reported. “The conversations are largely around the pricing of the deal, as older investors want to make an exit now.”
 
There has recently emerged a trend for investors to reduce their stakes in late-stage firms and for new investors to choose to fund businesses which have managed to continue their operations despite financial challenges and have been able to reduce their costs by optimising their operations.

WestBridge Capital bought part of Meesho’s early investor Venture Highway in October, 2023. Sources indicated that Venture Highway aims to sell off its remaining 1% stake in Meesho during this round, the Economic Times reported. 
 
Meesho, which retails a multi-brand selection of fashion and lifestyle goods with a focus on value products, reported a 37% year-on-year increase in its operating revenue in the first half of the 2024 financial year. The business also reduced its losses in the same time period by 90%.