Elevation Capital and Peak XV Partners sold 5.24 Cr shares each to the likes of ADIA, Fidelity, Morgan Stanley, Goldman Sachs, etc
The two VC firms are among Meesho’s largest investors and had offloaded stake during the company’s IPO as well, minting huge returns
The block deals were executed at an average price of ₹186 per share, a 3% discount on the stock’s closing price today
VC firms Elevation Capital and Peak XV Partners cumulatively sold 10.28 Cr shares of ecommerce major Meesho
via multiple bulk/block deals on August 4, netting ₹974.6 Cr apiece.
Elevation Capital, via holding entity Elevation Capital V Ltd, and Peak XV Partners, via Peak XV Partners Investments V, both sold 5.24 Cr shares at an average selling price of ₹186.
The shares that flooded the market were lapped up by ADIA, Fidelity, Morgan Stanley, Goldman Sachs, HSBC Mutual Fund, Kotak Mahindra Mutual Fund, among others.
The deals materialised at a 3% discount from Meesho’s closing price today of ₹191.90. The stock has largely been on an upward trend since the company’s financial disclosures on July 23.
In Q1 FY27, Meesho managed to slash its consolidated net loss by 54% YoY to ₹132.8 Cr in Q1 FY27. Its losses declined by a fifth on a sequential basis.
The company earned ₹3,707 Cr in operating revenue, 48% higher YoY. Its marketplace business managed to trim EBITDA losses 6% YoY to ₹139 Cr. However, its new initiatives reported an EBITDA loss of ₹39 Cr, more than doubling from the year-ago period.
It reported 72.5 Cr orders placed during the quarter, amounting to a net merchandise value (NMV) of ₹11,614 Cr.
The improvement in the stock performance gives Meesho’s early backers a solid window to bank on their initial investments. Elevation Capital first backed Meesho in August 2017, leading the company’s Series A funding round while Peak XV’s first investment in Meesho was $7.15 Mn for 18.4% stake.
At the end of the June quarter, Elevation Capital controlled over 12% stake in Meesho and Peak XV held over 11% across multiple holding entities.
Notably, both investors had sold Meesho shares as part of the firm’s IPO. Elevation Capital offloaded 2.4 Cr shares, more than any other investor, making a 37X return on its investment. Meanwhile, Peak XV had sold 1.7 Cr shares, bagging 26X return.
Source: Inc42 - Startups
