Meesho, the Indian e-commerce platform, is reportedly considering an initial public offering (IPO) as its next fundraising event. Meesho’s CEO, Vidit Aatrey, said that while the company had struggled to raise funds during the “funding winter,” it didn’t need to raise money at present.
He noted that Meesho had already raised a substantial amount of money in 2021, and as of now, the company has enough cash to operate healthily for years. Aatrey added that Meesho’s next funding could be through the public markets, but the company’s plan for 2023 is to become profitable as quickly as possible, reducing the need for external capital.
Meesho, one of India’s most-funded startups, raised over $1 billion in venture capital from domestic and global investors between August 2019 and September 2021, boosting its valuation from $700 million to $4.9 billion, according to Tracxn. Despite relying on venture capital dollars to fuel its early growth, Meesho has shifted its focus towards profitability.
Two of Meesho’s major investors, SoftBank and Prosus Ventures, are optimistic that the company will achieve profitability in the coming months, rather than years.
Sarthak Misra, Investment Director at SoftBank Vision Fund, said that Meesho was in a better position than many startups and smaller firms due to its balance sheet, which provides it with more than two years of runway. Misra added that if current trends continue, Meesho should be profitable in 2023.
Meesho, an Indian e-commerce platform founded by Vidit Aatrey in 2015, was part of the YC S16 cohort of Y Combinator and reportedly raised approximately $15.2 million in funding.
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