Westbridge Capital buys stake in Meesho

Westbridge Capital has acquired 1.5% of Meesho at a valuation of $3.5 billion, two people with knowledge of the deal said. The investment firm acquired the stake from Meesho's seed investor, Venture Highway.

- Ranjani Raghavan

Venture Highway will retain around 3.8% of Meesho, one of the people cited above added, requesting anonymity. In a statement, Venture Highway said it generated over 50 times its initial investment.

"Venture Highway, an early and long-term backer of Meesho, invested in the company's first seed round over eight years ago," the firm said in the statement.

Meesho raised capital in a primary round in September 2021, when it was valued at $4.7 billion. Since then, investors have marked down startups on their books.

However, secondary share sales such as this one-typically happen at a discount to primary capital raise.