Meesho has struggled with increasing losses and slowing funding. Vidit Aatrey, the company’s co-founder and CEO, is unfazed. He claims that the company does not need to raise funds right now.

Meesho, an e-commerce platform, raised $570 million in a Series F round led by Fidelity Investments and B Capital Group nearly 15 months ago in September 2021. It had previously raised a $300 million Series E round led by SoftBank Vision Fund six months prior.

While industry insiders say Bengaluru-based Meesho has struggled to raise its next round of funding, particularly in late-stage deals, Co-founder and CEO Vidit Aatrey is unfazed. His claim: Meesho does not need to raise a round at this time.

“We are fortunate that we raised a substantial amount of money in 2021, much more than we needed. As of now, we have no plans to raise funds because we have more than enough in the bank and can run the business in a very healthy manner for many years,” Aatrey exclusively told Business Today.

He also mentioned that Meesho’s next round of funding could come from the public markets. “There is a good likelihood that our next round [of financing] would be an IPO. However, the goal for 2023 is to achieve profitability as soon as possible. “Once that happens, the need for external capital decreases dramatically,” Aatrey explained.

Meesho is still one of India’s most funded startups, having raised more than $1 billion in venture capital from a slew of domestic and international investors. According to Tracxn, its valuation increased from $700 million to $4.9 billion between August 2019 and September 2021. While the company’s rapid growth was initially fueled by venture capital funds, the company’s focus has not shifted to profitability.

“Once we reach profitability, we will be ready for an IPO,” Vidit says, adding, “but the market must also be ready.”

Meanwhile, two of Meesho’s key investors, SoftBank and Prosus Ventures (earlier Naspers), are confident that the e-commerce company will reach profitability “within months, not years”.

Sarthak Misra, Investment Director at SoftBank Vision Fund, told Business Today in a separate interview, “Meesho is better placed than a lot of upstarts and smaller companies given the market.”

The balance sheet’s strength provides it with 2+ years of runway. Before that, it will be profitable. They have been able to keep their costs under control. The organic growth of the contribution margin is strong, and if current trends continue, Meesho should be profitable in 2023.

Commending Aatrey’s “desire to go public”, Misra added, “Meesho will consider going public when the capital market is ready and at the right time to discover its value on the bourses. It’s fantastic that Vidit wants to go public and is preparing the company for an IPO.”