Social commerce platform Meesho, which has been in discussions for another financing round, is good to go to installed another financial backer: SoftBank.
The Japan’s product goliath is in late-stage converses with lead a round that can go as high as $250 million, said three individuals mindful of the conversations.
“SoftBank has given the term sheet and in the event that nothing turns out badly from here, at that point the financing will be reported in half a month from now,” said one of the sources refered to above, on state of obscurity as the discussions are private.
Sources additionally said that this round could raise Meesho’s valuation to more than $1.5 billion — a 2.5X hop from the last time it fund-raised. The Bengaluru-based Company was esteemed at $700 million during the Series D round in 2019.
“Meesho would be esteemed in the scope of $1.5-1.8 billion,” said the second individual who likewise didn’t wish to be named.
Read also Facebook is working on a Clubhouse-like audio chat product: Report
Existing financial backers Prosus (beforehand Naspers) and Elevation Capital (already SAIF Partners) are also liable to partake in the round, said the individual cited toward the start of the story. “The new round may see the halfway exit of some early patrons,” the individual added.
Meesho has more than 6,000,000 affiliates on its platform and 15% of them drive more than 66% of their business. The company’s free delivery administration has likewise helped Meesho scale quicker in the post-pandemic stage.
According to sources, the company timekeepers around 500,000 orders day by day.
Sources likewise said that Meesho is required to utilize these assets to additionally fortify its contributions including another staple vertical: Farmiso.
Meesho forayed into goods around 10 months back on a nearby local area model where all the orders would be conveyed to a specific affiliate who will at that point convey to the clients straightforwardly, clarified a source acquainted with Meesho’s activities.
“This could be one zone where they [Meesho] may be pushing since there are 2-3 new businesses including Otipy doing likewise and giving early indications of accomplishment,” added the source.
Supported by Facebook, Sequoia and Prosus, Meesho has arisen as the class chief in the social commerce space. Meesho’s scale could likewise be seen from its 3.8X flood in working income which remained at around Rs 307 crore when contrasted with the Rs 80 crore in FY19.
Its yearly misfortunes additionally flooded 3.1X to Rs 315.4 crore in the year finishing March 2020 from Rs 100.42 crore in the former financial.