Meesho shares fell nearly 1% to ₹190.50 on Wednesday following the completion of a significant block deal involving 10.48 crore shares representing 2.3% of the company's outstanding equity. According to The Hindu BusinessLine, the transactions were executed on Tuesday at an average price of ₹186 per share, taking the total deal value to ₹1,949.28 crore. The identities of the buyers and sellers were not immediately disclosed, though the block deal comes after Meesho reported improved quarterly performance. The stock's decline contrasts with Tuesday's 2.22% gain to ₹195.90 per share, indicating market volatility around the major stake sale.
The Meesho stake sale follows the company's Q2 results showing significant improvement, with consolidated net loss narrowing to ₹132.8 crore compared to ₹289.4 crore in the previous year. As reported by NDTV Profit, the company's revenue from operations increased 48% year-on-year to ₹3,713 crore, while marketplace revenue climbed 48% to ₹3,707 crore. The EBITDA loss improved to ₹224.7 crore from ₹264.4 crore last fiscal, indicating better operational efficiency. The company also reported a 34% year-on-year increase in Net Merchandise Value (NMV) to ₹11,614 crore, with contribution margin expanding 54 basis points quarter-on-quarter to 4.6% of NMV. Morgan Stanley had previously maintained its Equal Weight rating with a target price of ₹190, noting that profitability improved faster than revenue growth.
Following the latest transaction, Elevation Capital's holding in Meesho fell to 10.91% from 12.04%, while Peak XV Partners' stake declined to 8.93% from 10.06%. According to The Hindu BusinessLine, at the end of the June quarter, Peak XV Partners Investments V held around 10.06% stake in Meesho, while Peak XV Partners Growth Investments IV held 1.39% stake and Elevation Capital V Ltd held 12.04% stake. Despite the divestment, Elevation Capital and Peak XV Partners continue to remain among the largest public shareholders in Meesho, along with Naspers holding an 11.27% stake and tech investor SoftBank through its arm SVF II Meerkat (DE) LLC owned a 8.60% holding. This follows Elevation Capital's pattern of trimming public stakes, having offloaded 1.86% stake in November 2025 and a 1.34% selldown in May before the current transaction.
The block deal saw participation from 27 investors who acquired shares from Elevation Capital V and Peak XV Partners Investments V. According to The Hindu BusinessLine, domestic investors comprised UTI Mutual Fund, Kotak Mahindra MF, HSBC MF, Franklin Templeton MF, Aditya Birla Sun Life MF, Axis MF, and Edelweiss MF. Among insurance firms, Factory Mutual Insurance Company and ICICI Prudential Life Insurance purchased shares. Foreign investors included Societe Generale, Prudential Hong Kong, Morgan Stanley, Goldman Sachs, Susquehanna International Group, Fidelity, Abu Dhabi Investment Authority, and Dendana Investments Mauritius. The stake sale comes weeks after Meesho reported its first-quarter results, with the two venture capital firms together selling a 2.3% stake in the company.
Meesho's board approved an investment of ₹75 crore in its wholly-owned subsidiary, Meesho Grocery Pvt. Ltd., to support the expansion of its grocery business and strengthen operations. As reported by NDTV Profit, the capital infusion will help improve operational efficiency and expand the subsidiary's offerings. Looking ahead, the company expects higher user growth and spending in the current quarter but relatively slower NMV growth due to changes in the festive calendar. Meesho said it is prioritising long-term platform expansion over near-term growth metrics, indicating a strategic shift toward sustainable growth over short-term profitability targets.
