Meesho a retail e-commerce firm has raised $192 M from its parent entity, Meesho Inc.
In September 2021, in a funding round led by Fidelity Management and Eduardo Saverin’s B Capital Group, the firm raised $570 million at a post-money valuation of $4.9 billion. The company’s board of directors had passed a special resolution to issue 6,512,342 equity shares to its US-based parent entity Meesho Inc. at an issue price of Rs. 2,408 per share to raise Rs.1568.2 crore or $192 Million.
The internal fund activity is a regular business-as-usual practice as a facet of Meesho’s extensive treasury approach aligned with its panel.
Meesho as well as the competitors of Meesho, namely e-commerce marketplaces such as Amazon and Flipkart have seen a strong rise in their volume during the festive seasons (Dusshera and Diwali). According to Meesho, it processed a record of 87.6 lakh orders on the first day of its flagship festive deal event named the Meesho Mega Blockbuster Sale. Tier 2, 3, and 4 cities accounted for 85% of the total volume.
The financial number for FY22 has not been disclosed by Meesho yet. The revenue from operations grew 2.6X to Rs 793 crore in FY21 from Rs 307 crore during FY20. The losses of Meesho jetted 62.6% to Rs 498.6 crore in FY21 from Rs 306.7 crore during FY20 as per the company’s annual monetary declarations with the ROC.
The company’s eyesight is to attain 100 million monthly transacting users by December 2022. It also embarked on grocery last year but it didn’t work out and the company reportedly discontinued grocery delivery services in several cities. Laying off hundreds of employees was also done this year to cut costs and expand the runway.
- Binny Bansal is in Talks to Invest $100 Mn-$150 Mn in PhonePe - March 11, 2023
- Bira 91 bags $10 Mn from MUFG Bank(Japan’s largest Bank) - March 10, 2023
- Off Duty bags INR 4 Cr from Velocity.in - March 6, 2023