Meesho Raises USD 275 Million As Investor Interest Grows
Date
5/14/2024 2:19:21 PM
(MENAFN- KNN India) New Delhi, May 14 (KNN) Indian e-commerce platform Meesho has raised USD 275 million fr0m investors, according to a recent regulatory filing with the U.S. Securities and Exchange Commission.
The SoftBank-backed company has seen growing investor interest due to its demonstrated sustainable growth.
The USD 275 million raised marks the first tranche of a larger USD 600 million funding round that Meesho is currently negotiating.
Existing investors in the company include SoftBank, Prosus, Elevation Capital, and Peak XV Partners.
Meesho plans to use approximately USD 300 million of the new capital to cover taxes fr0m relocating its base back to India fr0m Delaware. The company is preparing for an eventual IPO in India.
Since its founding in 2015, Meesho has raised a total of USD 1.36 billion in funding.
It achieved profitability in July 2023, an impressive milestone for the rapidly growing e-commerce platform.
Competing with rivals like Flipkart and Amazon, Meesho recorded 145 million app downloads in India in 2023 according to data. It also crossed 500 million total downloads in the first half of the current fiscal year.
"Our growth in downloads is now largely coming fr0m organic word-of-mouth momentum benefiting fr0m the wide selection and low prices on the platform," the company stated.
A recent report fr0m AllianceBernstein named Meesho as the fastest growing e-commerce platform in India in terms of user base.
While Flipkart remains the overall market leader with an estimated 48 per cent share, Meesho's rapid expansion signals intensifying competition in the Indian e-commerce sector.
(KNN Bureau)
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