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Business News/ Companies / News/  Meesho doesn't need to raise money right now, next funding could be via IPO: Report

Online fashion platform, Meesho does not have any plans for fundraising as of now. The company's CEO and co-founder Vidit Aatrey said they have more than enough money in the bank. In regards to the struggle which many startups have during the funding winter, he claimed that Mesho doesn't need to raise funds in any round now. Meesho has raised substantially in 2021! Although the next round of funding could be through an IPO. 

Aatrey told exclusively Business Today that "we are fortunate that we raised a substantial amount of money in 2021, much more than we needed."

He told the media channel that as of now, the company doesn't have any plans of raising money because they have more than enough in the bank, and can keep running the business in a very healthy manner for many years.

The last time Meesho raised money was 15 months ago in September 2021. During this month, the company bagged fundraising of $570 million in a series F funding round led by Fidelity Investments and B Capital Group. Prior to this, the company had received $300 million in a series E funding round which was led by SoftBank Vision Fund.

If Meesho does plan for raising money in the future, the co-founder said there is a good likelihood that the next round of funding would be an initial public offering (IPO). He said, once the company gets to profitability, they are ready for an IPO.

During funding winter, claims were that Meesho has struggled to raise its next round, especially in late-stage deals. To which, Aatrey told BT that these are "undeterred". Instead, he claimed that Meesho doesn’t need to raise a round now.

The news of Meesho's IPO has been circulating for quite some time now.

Last year, in September, at the company's town hall meeting, Aatrey said, Meesho is working on becoming Ebitda-positive by mid-2023 before going public. The recording of the meeting which was obtained by VCCircle showed aggressive plans to turn Ebitda positive.

It was also known that Aatrey was also considering dual listing, along the lines of Infosys and HDFC, which are listed in both India and the US.

Meta Platforms formerly known as Facebook and SoftBank are some of the major investors in Meesho.

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Updated: 25 Feb 2023, 04:29 PM IST
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