Mutual Funds Increase Meesho Stake as Foreign Investors Trim Holdings
Domestic mutual funds boosted their exposure to Indian e-commerce platform Meesho in the first quarter of FY27. This offset stake sales by several early foreign backers after the company's post-IPO lock-in period ended.
Domestic institutional investors significantly increased their holdings in Indian e-commerce platform Meesho during the April-June 2026 quarter. This occurred as several foreign investors began selling shares after the company's post-initial public offering (IPO) lock-up period expired on June 9.
According to the company's shareholding pattern report, foreign corporate holdings decreased from 65.51% at the end of March to 62.05% by the end of June. During this quarter, 17 foreign companies divested their stakes, reducing the total number of foreign entities to 50.
Fidelity and Astrend India were among the notable foreign sellers. However, major investors such as Peak XV Partners and SoftBank maintained their positions. Collectively, smaller foreign shareholders sold 16.68 million shares during the quarter.
In contrast, domestic mutual funds saw a substantial increase in their investments, adding over 15.18 million shares. By the end of June, 27 mutual funds held a combined 7.93% stake in Meesho. Holdings by domestic alternative investment funds (AIFs) also grew, rising from 2.59 million to 3.74 million shares.
This shift towards domestic ownership reflects a broader trend among India's listed new-age technology companies, indicating growing confidence from local investors and a reduced reliance on foreign capital.