Home Gadget WestBridge evaluates shopping for stake in India’s Meesho at a reduction

WestBridge evaluates shopping for stake in India’s Meesho at a reduction

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WestBridge evaluates shopping for stake in India’s Meesho at a reduction

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WestBridge Capital is in superior phases of talks to buy shares of Meesho value nicely over $100 million within the secondary market, based on two folks aware of the matter, because the high-profile enterprise agency seems to be 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 25-35% 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, SoftBank, Elevation and Peak XV amongst its backers — was valued at about $4.9 billion in a spherical it closed within 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, based on 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, whose 5% stake in Meesho is value about $250 million on the earlier valuation, has been a long-term backer of Meesho, investing in practically all subsequent rounds. It has expressed an curiosity in making a full exit on the startup.

India’s e-commerce market within the calendar 12 months 2022 by GMV figures (Information: Jefferies)

WestBridge’s curiosity in Meesho follows the startup dramatically bettering its funds in current 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 way of competitively priced, numerous and unbranded assortment of merchandise, had a GMV of $4.5 billion within the calendar 12 months 2022.

“Meesho has a number one place throughout a number of trend & life-style classes,” Jefferies wrote in a word to purchasers earlier this 12 months. “Through the early years, Meesho primarily focussed on attire, however has diversified into different life-style classes over time because it developed into a really horizontal pure- play market. As we speak, practically half of its GMV comes from non-apparel classes.”

WestBridge can be an investor in DealShare, a startup that initially leveraged social platforms for commerce. It’s presently grappling with some existential considerations about its enterprise. The deal, if it materializes, would even be outstanding as a result of WestBridge tends to put money into startups at their Collection B-D rounds, often making an entry at a valuation under $250 million.

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