**Prosus Expands Investment in India’s Consumer Internet Sector**
The Netherlands-based Prosus is reaping the rewards of its investment strategy in India, with plans to allocate more long-term capital into consumer internet, artificial intelligence (AI), and fintech sectors, according to senior executives. A significant indicator of this success is Meesho, where Prosus stands as one of the largest institutional investors. The company’s impressive market debut, which saw its shares rise over 53% above the initial public offering (IPO) price, has significantly increased the value of Prosus’s investment and reinforced its belief in India’s potential for long-term growth.
On the National Stock Exchange, Meesho’s share price closed at ₹170.45 on its listing day, reflecting a 53.6% premium over the IPO price of ₹111. Although the stock experienced a slight decline of over 1% the following day, its market capitalization reached ₹75,942 crore (approximately $8 billion). With an 11.2% stake in the online retailer, Prosus has made a lucrative investment and is not in a rush to divest.
The relationship between Prosus and Meesho began with a simple cold email to the founders. Ashutosh Sharma, head of India Ecosystem at Prosus, recalled meeting the founders in early 2018 and being impressed by their vision. Prosus first invested in Meesho, which was primarily a reseller platform at the time, in 2019 and continued to support the company through subsequent funding rounds until 2024. This partnership has facilitated Meesho’s evolution from a social commerce platform to a large-scale e-commerce entity.
Saurav Jain, principal investor at Prosus, emphasized the team’s strategic vision to cater to the next 300-500 million users, noting their effective decision-making in transitioning from a reseller model to a direct-to-consumer approach. This confidence in Meesho’s leadership has led Prosus to maintain its investment, with Sharma stating that any selling during the IPO was merely to comply with regulatory requirements.
In the past 12-18 months, Prosus has witnessed four of its key portfolio companies, including Swiggy, Bluestone, Urban Company, and Meesho, successfully list on Indian stock exchanges. As of Thursday’s trading close, Prosus is estimated to have accrued $3.95 billion in gains from these investments. Other companies in Prosus’s portfolio, such as Rapido, PayU, Vastu Housing, and Minitfi, are also on the path to potential public offerings.
**FAQ**
**What is Prosus’s investment strategy in India?**
Prosus aims to invest long-term capital in consumer internet, AI, and fintech sectors, focusing on companies with strong growth potential like Meesho.