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Early investors in Meesho, including Elevation Capital and Peak XV Partners, are sitting on significant paper gains after the value-focused ecommerce company announced a price band of Rs 103-111 per share for its upcoming initial public offering (IPO), valuing it at Rs 51,535 crore ($5.74 billion).
Cofounders Vidit Aatrey and Sanjeev Barnwal, who have been tagged as Meesho's promoters, together hold an 18.5% stake-- worth Rs 8,749 crore at the upper end of the price band. Both are selling 16 million shares each, or a 0.3% stake, and are expected to realise about Rs 178 crore individually from the offer for sale (OFS).
CEO Aatrey, who holds 472 million shares, will see his stake valued at Rs 5,245 crore, while chief technology officer Barnwal's holding is currently valued at Rs 3,504 crore.
Early backers of the company are also set to get big returns. Elevation Capital, Meesho’s largest shareholder with a 13.6% stake, is sitting on a 37x return on its investment. The venture capital firm, which invested in Meesho at an average cost of Rs 3.04 per share, now holds a stake valued at around Rs 6,432.2 crore. Elevation is trimming its offer for sale (OFS) portion to 2.4 crore shares from the earlier planned 5.5 crore and will realise roughly Rs 271.3 crore.
Peak XV Partners, the second-largest shareholder, with 12.8% stake valued at around Rs 6,055 crore first backed the online commerce platform in 2018. The VC firm has also reduced its OFS size and will now sell 1.7 crore shares, amounting to a cash realisation of around Rs 193 crore.
Among other early investors, Silicon Valley startup accelerator Y Combinator is one of the big gainers. Its 51 million shares, representing a 1.2% stake, are valued at Rs 576.3 crore, translating to a 109-fold paper return. YC’s other win this year came when stock broking and wealthtech startup Groww went public in a Rs 6.632 crore IPO earlier this month. YC’s 10.14% stake in Groww is now valued at around Rs 10,046 crore.
Dutch investor Prosus, which holds around 12.3% in Meesho, will see its stake valued at about Rs 5,834 crore. Another major backer, the Masayoshi Son-led SoftBank, holds 9.3% in the etailer valuing its stake at Rs 4,400 crore, while WestBridge Capital’s 3.9% shareholding is worth around Rs 1,853 crore.
Another early investor, Venture Highway, which was merged with US venture capital firm General Catalyst last year, has seen a 2.3x return, with its holding valued at Rs 174.3 crore.
Venture Highway, which had invested in the company's seed round in 2016, sold a portion of its stake in Meesho in early 2024 to WestBridge Capital, ET reported last year. The firm then said it made returns of more than 50 times on its investment in Meesho from its first vintage fund.
Other global investors, which are not participating in the OFS, are also holding significant stakes.
The IPO opens on December 3 and closes on December 5. The company has reduced the OFS component from 17.5 crore shares to 10.5 crore shares, while the fresh issue portion remains unchanged.
Aatrey told ET the company is doubling down on an asset-light strategy while working to widen the user base as it gears up for the public listing.
Rising IPO activity among new-age companies has seen venture capital and growth equity investors post blockbuster returns this year. As reported by ET on November 17, about half a dozen tech companies, including Urban Company, Lenskart, Groww, Ather Energy, Bluestone and Pine Labs, that have listed this year have collectively unlocked more than Rs 15,000 crore ($1.6 billion) via the OFS route alone for their shareholders.
Cofounders Vidit Aatrey and Sanjeev Barnwal, who have been tagged as Meesho's promoters, together hold an 18.5% stake-- worth Rs 8,749 crore at the upper end of the price band. Both are selling 16 million shares each, or a 0.3% stake, and are expected to realise about Rs 178 crore individually from the offer for sale (OFS).
CEO Aatrey, who holds 472 million shares, will see his stake valued at Rs 5,245 crore, while chief technology officer Barnwal's holding is currently valued at Rs 3,504 crore.
Early backers of the company are also set to get big returns. Elevation Capital, Meesho’s largest shareholder with a 13.6% stake, is sitting on a 37x return on its investment. The venture capital firm, which invested in Meesho at an average cost of Rs 3.04 per share, now holds a stake valued at around Rs 6,432.2 crore. Elevation is trimming its offer for sale (OFS) portion to 2.4 crore shares from the earlier planned 5.5 crore and will realise roughly Rs 271.3 crore.
Peak XV Partners, the second-largest shareholder, with 12.8% stake valued at around Rs 6,055 crore first backed the online commerce platform in 2018. The VC firm has also reduced its OFS size and will now sell 1.7 crore shares, amounting to a cash realisation of around Rs 193 crore.
Among other early investors, Silicon Valley startup accelerator Y Combinator is one of the big gainers. Its 51 million shares, representing a 1.2% stake, are valued at Rs 576.3 crore, translating to a 109-fold paper return. YC’s other win this year came when stock broking and wealthtech startup Groww went public in a Rs 6.632 crore IPO earlier this month. YC’s 10.14% stake in Groww is now valued at around Rs 10,046 crore.
Dutch investor Prosus, which holds around 12.3% in Meesho, will see its stake valued at about Rs 5,834 crore. Another major backer, the Masayoshi Son-led SoftBank, holds 9.3% in the etailer valuing its stake at Rs 4,400 crore, while WestBridge Capital’s 3.9% shareholding is worth around Rs 1,853 crore.
Another early investor, Venture Highway, which was merged with US venture capital firm General Catalyst last year, has seen a 2.3x return, with its holding valued at Rs 174.3 crore.
Venture Highway, which had invested in the company's seed round in 2016, sold a portion of its stake in Meesho in early 2024 to WestBridge Capital, ET reported last year. The firm then said it made returns of more than 50 times on its investment in Meesho from its first vintage fund.
Other global investors, which are not participating in the OFS, are also holding significant stakes.
The IPO opens on December 3 and closes on December 5. The company has reduced the OFS component from 17.5 crore shares to 10.5 crore shares, while the fresh issue portion remains unchanged.
Aatrey told ET the company is doubling down on an asset-light strategy while working to widen the user base as it gears up for the public listing.
Rising IPO activity among new-age companies has seen venture capital and growth equity investors post blockbuster returns this year. As reported by ET on November 17, about half a dozen tech companies, including Urban Company, Lenskart, Groww, Ather Energy, Bluestone and Pine Labs, that have listed this year have collectively unlocked more than Rs 15,000 crore ($1.6 billion) via the OFS route alone for their shareholders.