Meesho’s early backers eye new secondaries at $3-3.5 billion valuation

economictimes.indiatimes.com:

investors and early institutional shareholders in ecommerce company Meesho are in discussions with investors to divest their stake, people aware of the matter told ET.

Talks are on for a transaction at a valuation of $3-3.5 billion, but this figure may change, people briefed on the matter said.

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WestBridge Capital and Norwest Venture Partners are among the entities that have held talks with Meesho's early investors, the sources said.

The development underscores the growing trend of secondary share sales in late-stage firms. New investors are also looking at assets that have been able to withstand the funding drought and reduce operating burn over the last year or so.

Meesho’s early investor Venture Highway had sold a part of its stake in the company to WestBridge Capital in October, but it still has 1% in the SoftBank and Meta-backed startup, which was last valued at nearly $5 billion in 2021.


“WestBridge has indicated it wants to buy more in Meesho and Norwest has also held talks,” a person briefed on the discussions said. “The conversations are largely around the pricing of the deal, as older investors want to make an exit now.”

To be sure, secondary transactions typically happen at a discount to the last primary valuation. The extent of the discount, however, may have a bearing on when the company goes out to raise new primary capital.

A spokesperson for Meesho declined to comment,