WestBridge Capital is reportedly in advanced talks to acquire shares of Meesho, a social commerce startup, in a deal worth over $100 million. The investment firm, known for its focus on startups in India and Southeast Asia, is engaging with multiple investors, including Venture Highway, to buy out their stake in Meesho. The current terms of the deal value the Indian startup at a discount of 25-35% compared to its previous valuation. Meesho, backed by prominent investors such as Meta, YC, and SoftBank, was valued at about $4.9 billion in its last funding round.
Venture Highway, an early backer of Meesho, is interested in making a full exit from the startup. It originally invested $100,000 about eight years ago, valuing the company at around $1 million. With a 5% stake worth about $250 million at the previous valuation, Venture Highway has expressed its intention to sell its entire stake. However, Meesho has declined to comment on the development, and neither Venture Highway nor WestBridge Capital has responded to requests for comment.
WestBridge’s interest in Meesho comes after the startup significantly improved its financial performance in recent quarters. Meesho announced last month that it had achieved profitability at the consolidated level in July. The company, which offers competitively priced and diverse unbranded products, reported a GMV (Gross Merchandise Value) of $4.5 billion in 2022. The potential deal with Meesho is notable for WestBridge, as it typically invests in startups at earlier stages, usually entering at a valuation below $250 million.
In conclusion, WestBridge Capital is in advanced negotiations to acquire significant shares of Meesho, an Indian social commerce startup. The investment firm is engaging with various investors, including Venture Highway, to buy out their stakes in Meesho. The current terms of the deal value the startup at a discount in comparison to its previous valuation. Meesho, which recently achieved profitability and reported a high GMV, has attracted interest from WestBridge as it seeks to expand its presence in the e-commerce sector. Meanwhile, Venture Highway, one of Meesho’s early backers, is looking to make a complete exit from the company.