Meesho IPO set to deliver stellar gains for co-founders and early investors
Meesho’s IPO, which values the ecommerce company at $5.6 billion, marks the first ecommerce debut in the public markets and adds momentum to the ongoing wave of startup listings, joining the ranks of newly public tech firms.
Ecommerce company is set to launch its IPO next week, bringing massive gains for its co-founders and shareholders, as it makes India's first ecommerce public market debut.
The IPO price range is set between Rs 105 per share and Rs 111 per share, valuing the offering at Rs 5,421.05 crore, around $5.6 billion at the upper end of the range.
Meesho Co-founder, Chairman, and CEO Vidit Aatrey holds 11.1% stake in the company, which is currently valued at Rs 5,245 crore, marking a whooping 1,850x return since inception. Aatrey plans to offload a small portion of his holdings, acquired at an average price of Rs 0.06 a share, which is worth Rs 9.6 crore.
Co-founder and CTO Sanjeev Barnwal will also see his Rs 63.1 lakh stake, about 7.4% of the share capital, now worth Rs 3,504 crore, marking an impressive 5550x return.
Elevation Capital acquired its stake at a weighted average price of Rs 3.04 per share. At the IPO’s upper price band of Rs 111, Elevation’s pre-offer holding is valued at approximately Rs 6432.2 crore, delivering a remarkable ~37× return on its early investment, making it the institutional shareholders that walked away with the highest-return in the cap table.
Peak XV Partners, which invested at a later stage compared to the earliest seed investors, acquired 481.2 million shares at roughly Rs 4.29 per share. At the upper band of Rs 111, these shares are now worth nearly Rs 5,341 crore, generating an impressive 26x return.
Y Combinator's early bet in the company paid off, acquiring 51.9 million shares at just Rs 1.02 per share. At the IPO’s upper price of Rs 111, the value of this stake surges to nearly Rs 576 crore. This represents a staggering ~109× return, putting YC among the highest-multiple winners in the company’s cap table.
Prosus and SoftBank, despite being Meesho’s largest institutional investors with stakes of 12.34% and 9.31%, respectively, will not sell any shares in the IPO.
The Bengaluru-based company plans to open its IPO next week on December 3, with bidding offer closing on Friday, December 5.
(The story was updated to correct calculation error associated with investor gains.)
Edited by Megha Reddy