WestBridge Capital is in superior levels of talks to buy shares of Meesho within the secondary market, in response to two folks aware of the matter, because the high-profile enterprise agency appears 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 participating with a number of Meesho buyers together with Enterprise Freeway to purchase out their stake within the social commerce startup, the folks mentioned. The deliberations are ongoing and present phrases worth the Indian startup at a reduction of greater than 20 to 25% over the earlier valuation, one of many folks mentioned.
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 round it closed in 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 has been a long-term backer of Meesho, investing in practically all subsequent rounds.
WestBridge’s curiosity in Meesho follows the startup dramatically enhancing its funds in latest quarters. Meesho mentioned final month that it was worthwhile on the consolidated PAT degree within the month of July. Meesho, which has created a distinct segment by means of 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 trend & way of life classes,” Jefferies wrote in a observe to purchasers earlier this yr. “Through the early years, Meesho primarily focussed on attire, however has diversified into different way of life classes over time because it advanced into a really horizontal pure- play market. Immediately, practically 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 the moment grappling with some existential concerns about its business. The deal, if it materializes, would even be outstanding 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.
