E-commerce platform Meesho is set to raise $300 million from a group of investors, which includes Tiger Global and SoftBank, according to industry sources.

The funding round values Meesho at $3.9 billion, which is 20% lower than $4.9 billion it commanded during its previous fund raise in 2021. The reduction in value comes after Fidelity cut Meesho’s valuation to around $3.5 billion in January.

The development assumes significance as Tiger Global and SoftBank have not invested in India for around 18 months now. Further, once through, the funding round will be among the very few large rounds that have materialized in the last one year.

According to sources, existing and other investors, such as Peak XV Partners and Mars Growth Capital, will also participate in the round. Tiger Global and Peak XV Partners, are together putting in $150 million. Peak XV, along with some of its limited partners (LPs), is likely to pump in $70 million.

While Tiger will be a new investor in Meesho, Peak XV is an existing backer that had first invested in the e-commerce firm in 2018.

The remaining $150 million will come from SoftBank, Singapore’s Mars Growth Capital, and UK’s Think Ventures. While SoftBank is an existing investor and will put in more money to retain its stake in the company, Mars and Think will be funding Meesho for the first time.

The funding round will largely consist of primary capital but also have a small portion of secondaries which will be used to buy out early investors. Venture Highway, Meta, and Y Combinator are a few of Meesho’s early backers, as per Tracxn data.

Meesho declined to comment on the matter.

Meesho’s fundraise comes at a time when rival Flipkart has already received $600 million from parent Walmartas part of a larger $1 billion round. Even Amazon has infused $100 million in its India entity last month.

Meesho started reporting a monthly profit of Rs 4-5 crore since July 2023, and has largely remained profitable since then, according to CFO Dhiresh Bansal.

In FY23, the company halved its losses to Rs 1,675 crore from Rs 3,251 crore in FY22. Revenue from operations grew 77% from Rs 3,232 crore in FY22 to Rs 5,735 crore in FY23.

Meesho set to raise $300 million from Tiger Global, SoftBank