E-commerce platform Meesho’s last fundraiser came nearly 15 months ago in September 2021, when it raised a $570 million Series F round led by Fidelity Investments and B Capital Group. Six months earlier, it had raised a $300 million Series E round led by SoftBank Vision Fund.
While industry insiders say Bengaluru-based Meesho has struggled to get its next round off the ground during the funding winter, particularly in late-stage deals, co-founder and CEO Vidit Aatrey is undeterred. His claim: Meesho doesn’t need to raise a round now.
“We are fortunate to have raised a significant amount of money in 2021, much more than we needed. As of now we have no plans to raise any money because we have more than enough in the bank and can continue the business in a very healthy way for many years to come,” Aatrey told Business Today exclusively.
He also added that Meesho’s next fundraising could potentially come through the public markets. “There is a good possibility that our next round [of financing] would be an IPO. But the plan for 2023 is to break even as quickly as possible. And once that happens, the need for outside capital is very small,” explained Aatrey.
Meesho remains one of India’s best funded startups, having raised over $1 billion in venture capital from a bevy of domestic and global investors. Between August 2019 and September 2021, the valuation increased from $700 million to $4.9 billion per Tracxn. While the initial period of rapid growth was fueled by VC dollars, the company’s focus hasn’t shifted to profitability.
“As soon as we break even, we’re ready for an IPO,” says Vidit, adding: “Then the market must be ready too.”
Meanwhile, two of Meesho’s key investors, SoftBank and Prosus Ventures (formerly Naspers), are confident the e-commerce company will reach profitability “within months, not years.”
Speaking separately to Business Today, Sarthak Misra, investment director at SoftBank Vision Fund, said, “Meesho is better placed than many newcomers and smaller companies in that regard
Strength of record giving him more than 2 years runway. Before that, it will be profitable. They could control their costs. Organic contribution margin growth is strong and if we continue to monitor current trends, Meesho should be profitable in 2023.”
Misra praised Aatrey’s “desire to go public,” adding, “Meesho will consider an IPO when the capital market is ready and at the right time to discover its value in the stock markets. It’s great that Vidit has this desire to go public and prepare the company for the IPO.”
READ MORE: Meesho’s drive for profitability in the latest issue of Business Today magazine
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