RPS Ventures, a late-stage venture capital firm and early backer of Meesho, has offloaded nearly 3.9 crore shares worth about ₹900 crore, marking a significant reduction of its stake in the ecommerce startup.
- RPS Ventures sold nearly 3.9 crore Meesho shares for ₹899.7 crore.
- Sale represents over 71% reduction in RPS’s stake in Meesho.
- Shares bought by multiple institutional investors including Singapore government fund.
What happened
RPS Ventures, which joined Meesho's cap table in 2018 during its $50 million Series C funding round, has sold approximately 3.86 crore of its equity shares in a single block deal. This accounts for about 0.8% of the total equity in Meesho and garnered approximately ₹900 crore at a price slightly below the closing market value.
The buyers of these shares include prominent institutional investors such as the Government of Singapore, Mirae Asset Mutual Fund, Societe Generale, BNP Paribas Arbitrage, and others. Post-sale, RPS Ventures' holding in Meesho dropped from around 1.1% to significantly lower, reflecting a reduction of more than 71% in its stake.
Why it matters
The divestment by RPS Ventures is part of a broader pattern observed over recent months where several major Meesho investors have offloaded large stakes. Earlier, Y Combinator, Elevation Capital, Peak XV Partners, and Fidelity executed similar bulk sales amounting to significant value in the hundreds of crores.
This wave of share sales by early and late-stage backers highlights a maturing market for Meesho's equity as initial investors capitalize on the company's public market listing and solid financial performance. Despite these sales, Meesho's stock has shown positive momentum bolstered by quarterly earnings reflecting revenue growth and declining net losses.
What to watch next
Market participants will be closely monitoring further shareholding changes among Meesho’s investor base to gauge confidence levels in its growth trajectory and valuation sustainability. Continued institutional buying or selling pressure can significantly influence Meesho’s stock movement on the exchanges.
Additionally, Meesho’s financial performance in upcoming quarters will be critical, as its recent report showed a 48% increase in operating revenue and a 54% reduction in consolidated net loss. Sustained improvement in these metrics may attract fresh investments or limit further stake sales by existing shareholders.