Y Combinator Sells 1.05% Stake in E-commerce Marketplace Meesho for ₹970 Crore

Silicon Valley-based investor Y Combinator has sold a 1.05 per cent stake in e-commerce marketplace Meesho for nearly ₹970 crore through open market transactions. The transaction was executed on the National Stock Exchange (NSE).

According to block deal data on the NSE, the stake sale was conducted through three Y Combinator affiliates: Y Combinator Continuity Holdings I LLC, YCS16 Holdings LLC, and YCVC Fund I LP. Together, these entities sold a total of 4,84,79,341 shares in the Bengaluru-based company.

The shares were disposed of at an average price of ₹200.01 apiece, bringing the total aggregate deal value to ₹969.63 crore. Following the transaction, Meesho's shares closed marginally lower at ₹205.19 apiece on the NSE.

This marks the second major stake reduction by Y Combinator in a prominent Indian new-age company within a week. On August 18, the firm divested a 1.2 per cent stake in Billionbrains Garage Ventures, the parent company of fintech platform Groww, for ₹1,435 crore.

On the buying side, a diverse group of domestic and foreign institutional investors stepped in to acquire the Meesho shares. Domestic buyers included mutual funds managed by Canara Robeco, Edelweiss, Franklin Templeton, HSBC, and Nippon India, alongside Aagam Investments, an affiliate of NBFC firm Aagam Capital.

Institutional insurers such as Bajaj Life Insurance and HDFC Life Insurance also participated in the share purchase.

Additionally, several foreign institutional investors acquired stakes in the company, including Societe Generale, BNP Paribas Financial Markets, BofA Securities, Citigroup Global Markets Mauritius, Ghisallo Capital Management, Goldman Sachs, Integrated Core Strategies Asia, Morgan Stanley, Kuwait Investment Authority, and Viridian Asset Management.

The latest open market transaction forms part of broader secondary market activity involving Meesho. Earlier in the month, private equity investors Elevation Capital and Peak XV Partners sold a combined 2.3 per cent stake in Meesho for ₹1,949 crore.

"Secondary market transactions of this scale indicate healthy liquidity options for early-stage backers in mature Indian startups. When institutional investors step in to absorb large blocks of shares from global funds, it demonstrates continued market depth and confidence in foundational businesses like Meesho. Such liquidity events are a natural progression for growth-stage companies as their early investors rebalance portfolios." — Dr. Shishir Gupta, Founder & CEO, StartupLanes