Amid preparations for an IPO, e-commerce platform Meesho has raised a fresh US $ 550 million in funding, with participation from new investors like Tiger Global and existing backers like Peak XV and WestBridge Capital, according to a report.
This round, which includes a significant secondary component, values the company at approximately US $ 3.9-4 billion, as per the report.
Concurrently, Meesho has initiated the process of shifting its domicile to India by filing an application with the National Company Law Tribunal (NCLT) for a reverse merger of its Indian subsidiary with its US parent. This strategic move is crucial for the company’s planned IPO, which is expected to take place in 2026, the reports added.
Meesho aims to file its draft IPO documents in the second half of 2025, contingent upon the timely approval from the NCLT. This move could potentially establish Meesho as one of the first horizontal e-commerce companies to list on Indian stock exchanges.
The company has raised primary capital in this funding round primarily to cover the substantial tax liabilities associated with the reverse merger.
Meesho has demonstrated strong growth in recent years, with revenue increasing by 33 per cent in FY ’24 to US $ 881 million (Rs. 7,615 crore). The company has also significantly narrowed its losses and achieved operating cash flow positivity.
This move by Meesho aligns with a growing trend among Indian startups to shift their domiciles to India and pursue IPOs on domestic exchanges. Several other prominent companies, including Flipkart, Groww, and PhonePe, are also undertaking similar initiatives.
