Meesho IPO: SPAC itemizing in US or public providing in India on the playing cards

Social commerce market Meesho is seeking to finalise a location and construct a compliance framework by the tip of this month, for its public providing deliberate within the first half of 2023, in accordance with folks with data of the matter. The Facebook and Softbank-backed firm is considering selecting from both a public itemizing in India or a SPAC-listing within the US.

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The firm is learnt to be presently engaged on defining key efficiency indicators and enterprise metrics for its traders, and constructing compliance adherence on its app and web site. According to folks with data of the matter, Meesho is aiming to be “IPO-ready” by the tip of 2022. “To stick to the timeline, the company needs to make sure that its governance, financial reporting, and internal processes are in place to meet regulatory requirements by the end of the year,” one of many individuals mentioned.

“The company is still contemplating a Special Purpose Acquisition Company (SPAC) listing in the US, or a traditional listing in India,” one other particular person mentioned. “Currently, it is carrying an internal discussion on the differences between the two types of listings, which will eventually determine where it lists”.

Several corporations use the SPAC path to go public within the US. SPACs are publicly listed funding autos that haven’t any operations and are shaped with the intention of merging with a personal firm. India’s most dear startup, edtech agency Byju’s can be reportedly contemplating a SPAC itemizing within the US.

“Meesho also hired former JP Morgan executive Dhiresh Bansal as its chief financial officer to guide the company through the listing process,” one of many folks mentioned.

At the second it isn’t clear whether or not Meesho’s public itemizing can be an preliminary public providing or a suggestion on the market (OFS) which might be for the only real function of giving its traders an entire or partial exit from the corporate, or a mixture of each.

In response to an in depth questionnaire, a Meesho spokesperson mentioned that the “commentary here is inundated with factually incorrect information”. However, the corporate didn’t elaborate on its assertion or the claimed inaccuracies, regardless of a number of requests.

Sources additionally mentioned Meesho is presently not worthwhile however “has zero debt”. “The company has lots of funding still left in the bank to continue the zero per cent commission it charges from sellers on its platform,” an organization supply mentioned.

The firm had final raised $570 million led by Fidelity Management and Eduardo Saverin’s B Capital Group, valuing it at round $5  billion in September final 12 months. At the time, the corporate had mentioned it was eyeing to achieve 100 million month-to-month transacting customers by December 2022. Google can be seeking to make investments $50-$75 million within the social commerce startup.

Meesho began out as a reseller led platform the place it helped these resellers not solely supply their merchandise, but additionally present logistics and tech assist. But, within the final one-and-a-half years, the share of Meesho’s customers — most from tier 2 and tier 3 cities — shopping for immediately from the corporate has been rising.

Notably, Meesho is presently looking at an intensifying aggressive state of affairs with homegrown gamers akin to Flipkart, and international corporations like Shopee having entered the social commerce house within the final one 12 months.

Also, during the last 12 months, India witnessed a collection of recent financial system tech IPOs, which noticed success by way of subscription of the providing however have these days seen a pointy correction. These embrace Zomato, PB Fintech (Policybazaar), One97 Communications (Paytm), and so forth.