WestBridge Capital, a venture firm known for its investments in startups in India and Southeast Asia, is reportedly in advanced talks to purchase shares of Meesho in the secondary market. Meesho is a social commerce startup valued at about $4.9 billion in its last funding round. WestBridge is engaging with multiple Meesho investors, including Venture Highway, to acquire their stake in the company. The current terms of the deal value Meesho at a discount of 20 to 25% compared to its previous valuation. While Meesho, Venture Highway, and WestBridge Capital have not commented on the matter, it is not uncommon for investors to sell their stakes in privately held firms at discounted prices.
The interest from WestBridge Capital comes as Meesho has significantly improved its finances in recent quarters, announcing profitability in July. The startup, which offers a wide range of competitively priced, unbranded products, reported a GMV of $4.5 billion in 2022. Meesho has diversified beyond its initial focus on apparel and has become a leading player in multiple fashion and lifestyle categories. This expansion has contributed to its success and attracted the attention of investors like WestBridge Capital.
If the deal with Meesho materializes, it would be notable for WestBridge as the firm typically invests in startups at their Series B-D rounds, with valuations below $250 million. Additionally, WestBridge is also an investor in DealShare, another startup that initially leveraged social platforms for commerce but is currently facing challenges with its business. The potential acquisition of Meesho shares further demonstrates WestBridge’s focus on expanding its presence in the e-commerce sector.