Promoters, early investors see windfall paper gains from Meesho’s $5.7 billion valuation; founders’ stake worth Rs 8,750 crore

Founders and early investors in Meesho are sitting on major paper gains after the ecommerce company set a price band of Rs 103–111 per share for its upcoming initial public offering (IPO), valuing the company at around Rs 51,535 crore ($5.74 billion).

Cofounders Vidit Aatrey and Sanjeev Kumar together hold around 18.5% in the company, worth Rs 8,749 crore at the upper end of the price band. Both are selling 1.6 crore shares each, and are expected to realise about Rs 178 crore from the offer for sale (OFS).

CEO Aatrey, who holds 47.2 crore shares, now sees his stake valued at around Rs 5,245 crore. According to the draft prospectus, Aatrey acquired his shares at an average cost of just Rs 0.06 per share. Similarly, chief technology officer Kumar’s holding, currently valued at around Rs 3,504 crore, was acquired at similar nominal pricing.

Also Read: Meesho IPO: There’s no slowdown, India among the least penetrated ecommerce markets globally: CEO Vidit Aatrey

Early backers of the company are also set to benefit significantly. Elevation Capital, Meesho’s largest shareholder, will see about a 37x paper gain on its investment. The 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 Capital 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, now holds shares valued at around Rs 6,055.2 crore. The 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 the earliest investors, Y Combinator has emerged as one of the biggest gainers. Its 5.1 crore shares, representing a 1.2% stake, are now valued at around Rs 576.3 crore, translating to a 108-fold paper return. Venture Highway has seen a return of around 2.3 times on its investment, with its current holding valued at Rs 174.3 crore.

Also Read: ETtech Explainer: Meesho’s upcoming Rs 5,421-crore IPO

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.

In an interaction with ET, Aatrey said the company is doubling down on its asset-light strategy while working to widen its user base as it gears up for the public listing.