Japanese conglomerate SoftBank has further scaled back its holdings in India's e-commerce sector by selling a 1.65% stake in Bangalore-based Meesho for Rs 1,885 crore, marking the latest step in its broader portfolio reduction strategy in the country.
- SoftBank sold 1.65% stake in Meesho for Rs 1,885 crore
- Buyers included prominent domestic and global institutional investors
- Part of ongoing SoftBank divestment in Indian consumer tech firms
What happened
SoftBank Group affiliate SVF II Meerkat (DE) LLC sold 7.64 crore shares in Meesho via a block deal on the National Stock Exchange, averaging Rs 246.75 per share and raising Rs 1,885.17 crore. This divestment has reduced SoftBank’s overall stake in the Bangalore-based e-commerce platform from 6.84% to 5.19%.
The sale attracted interest from a range of investors both domestic and international. Major buyers included Paris-based Societe Generale, which acquired over 1.47 crore shares, as well as mutual funds and insurance companies like Motilal Oswal, HDFC, Edelweiss, Aditya Birla Sun Life, and Bajaj Life Insurance. Global investors such as Morgan Stanley, Fidelity, BNP Paribas, and sovereign wealth funds from Singapore and Norway also participated.
Why it matters
This transaction is part of SoftBank’s continuing strategy to monetize its stakes in Indian tech startups, particularly in the e-commerce and consumer technology sectors. SoftBank has been gradually reducing holdings in key portfolio companies over the year, including multiple recent stake sales in Meesho and Lenskart, reflecting a shift in its investment approach in the region.
The participation of a diverse set of institutional investors underscores strong continued interest and confidence in India’s growing digital economy, even as large early investors like SoftBank scale back exposure. Meesho’s share price responded positively, closing modestly higher following the deal.
What to watch next
Market observers will look closely at SoftBank’s next moves regarding remaining Indian holdings across its portfolio. Continued divestments could signal shifting global investment trends or SoftBank recalibrating risk exposure amid evolving macroeconomic conditions.
For Meesho and other Indian startups, attracting stable and diversified institutional investors will be crucial for sustaining growth momentum and supporting future funding rounds given SoftBank’s reduced backing. The response of local and global investors to such divestments will provide key insight into the long-term outlook for India’s tech ecosystem.