Meesho’s Early Investors and Founders Poised for Massive Wealth Creation as IPO Nears

Bengaluru, November 28: Meesho IPO opens for subscription on December 3, and its upcoming IPO will provide extraordinary returns to its early investors and founders. The book-build Meesho IPO is a fresh issue of ₹4,250 crore, and an offer for sale of 10.55 crore. The company has announced a price band of ₹105-₹115, valuing the e-commerce platform at around ₹50,095.75 crore.

The Evolution of Meesho Into a Full-fledged e-commerce Platform

Meesho (short for ‘Meri Shop’ or ‘My Shop’) is a leading Indian e-commerce platform. It has played a key role in democratising internet commerce, particularly for small businesses and customers in Tier 2, Tier 3, and rural cities across India.

In its starting phase, the company gained popularity through a unique social commerce model. It enabled individual entrepreneurs (often women) to resell products through marketing by purchasing them from suppliers via social media (like WhatsApp and Facebook). However, now it operates as a full-fledged e-commerce marketplace.

Founders Set for Strong Gains

Vidit Aatrey, Meesho’s Co-founder, Chairman and CEO holds 47.25 crore shares. The shares represent a 11.1% stake in the company. He acquired the shares at an average cost of ₹0.06 per share. This stake was earlier valued at ₹2.84 crore. However, at the upper price band of the IPO, Aatrey’s stake is now valued at ₹5,245 crore. It is a gain of more than 1,800 times.

Sanjeev Kumar, Co-founder, Whole-time Director and CTO, owns 31.57 crore shares. It represents a 7.41% stake in the company. He acquired the shares at an average price of ₹0.02 per share. The stake was earlier valued at ₹63 lakh. However, it is now worth ₹3,504 crore at the upper price band of the IPO. The gain is more than 5,500 times.

Early Institutional Investors Headed For Strong Gains

Elevation Capital

• Shares held: 57.95 crore
• Stake: 13.6%
• Average acquisition price: ₹3.04
• Earlier valuation: ₹177 crore
• Current valuation: ₹6,433 crore

Peak XV Partners

• Shares held: 48.12 crore
• Stake: 11.3%
• Average acquisition price: ₹4.29
• Earlier valuation: ₹207 crore
• Current valuation: ₹5,342 crore

YC Continuity Fund

• Shares held: 5.2 crore
• Stake: 1.22%
• Average acquisition price: ₹1.02
• Earlier valuation: ₹5.3 crore
• Current valuation: ₹576 crore

Other early backers include Venture Highway, with its stake increasing from ₹73.5 crore to ₹175 crore, and Gemini Investments, with its stake increasing from ₹8.3 crore to ₹493 crore.

What’s Ahead for Meesho IPO?

Meesho IPO is set to open on December 3, and will close on December 5. The share allotment for Meesho IPO is expected on December 8, with the company crediting shares and initiating refunds on December 9. The shares of the company are expected to list on NSE and BSE on December 10. The issue size for Meesho IPO is significant, and its investors and founders are headed for immense gains. The IPO is expected to garner strong demand in the three days it will remain open for subscription.

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