Meesho Resets Boardroom, MyGate Elevates Rohit Jindal, and Namma Yatri’s Welfare Trust

E-commerce giant Meesho is in the news for making its boardroom leaner as it prepares for the public markets. In a recent move, the company added Mohit Bhatnagar from Peak XV and Mukul Arora from Elevation Capital to its board, while SoftBank and Prosus chose to relinquish their board seats. This reflects a familiar pattern in India’s startup ecosystem, one that often precedes an IPO.

Let’s start with the compliance angle. India’s Securities and Exchange Board (SEBI) mandates that at least one-third of a listed company’s board must comprise independent directors if the chairperson is non-executive and non-independent. It also expects companies to maintain a healthy balance between executive and non-executive members and limit the influence of large shareholders. For startups backed by multiple VC firms and global funds, this often means trimming board size or rotating seats before filing the Draft Red Herring Prospectus (DRHP).

This move is also a signal to the market. A lean board with fewer financial investors and more strategic or independent voices is viewed more favorably by public markets. It suggests the company is shifting from a growth-stage governance structure to one that’s more mature and transparent.

SoftBank (9.9% stake) and Prosus (13.1% stake) stepping back also fits a well-known playbook. They’ve done this before, both in India and globally. For IPO-bound companies, both firms prefer to exit board roles to focus on monetizing their stakes, while leaving daily operations to the company’s internal leadership and other early-stage backers.

Take Paytm, for instance. SoftBank, an early investor, stepped down from its board in 2022 before selling a large portion of its stake in the open market. The same happened at Policybazaar, where SoftBank chose to dilute gradually post-listing. In the global context, when Coupang (South Korea) and DoorDash (US) prepared for IPOs, SoftBank took a similar approach - reduce influence before the listing and exit progressively.

Prosus has followed the same path. It exited the board of Byju’s in 2023 amid governance concerns and then turned its focus toward stake dilution and financial return. Similar story in cases like Delivery Hero and OLX; Prosus rarely sticks around for operational control once a company begins preparing to go public. Their strategy is very typical - support businesses as they develop, and then cash out when the business becomes publicly traded.

Meesho is doing what many in the Indian startup ecosystem are starting to emulate - managing perception and governance ahead of a high-stakes IPO. With its losses shrinking over the last three years and growth stabilizing, the company is hoping to ride the current momentum in India’s IPO market. Meesho wants to position itself as a retail-friendly internet company with a clear path to profitability and better governance.

In our opinion, Meesho should consider bringing in truly independent board members with backgrounds in retail, finance, or governance. Not from the startup ecosystem, but from mature and publicly listed companies. That would strengthen the governance story even more.

Second, it must clearly communicate how it plans to sustain profitability. While revenue growth is essential, public market investors prioritize unit economics and responsible capital use. Meesho's getting better at managing its money, and it's important to present this well.

Third, investor exits must be balanced with retail investor confidence. The company must ensure that this doesn’t spark fear among public investors about valuation or long-term potential. A clear communication strategy about long-term value creation will be crucial.

In the end, Meesho is playing it right. Board reshuffles, narrative control, and strategic exits by global VCs are all steps in preparing for life as a public company. If managed well, this transition could help Meesho position itself as a mature business ready to perform under public scrutiny.

Let’s go through what else is happening in Indian startup world - Grab your simmering cup of StartupChai.in and unwind with our hand-brewed memes.

“Hum Saath Saath Hai”: MakeMyTrip To Pay $3 Bn To Repurchase Stake

MakeMyTrip is buying back its own shares in a massive $3B deal with China’s Trip.com, aiming to wrap it up by early July.

While Trip.com will still hold a 16.9% stake, this move helps MMT dial down foreign control - just weeks after allegations surfaced about potential data risks involving Indian soldiers. Strategic or symbolic? Either way, it's a high-stakes detour.

Read more here

“Workers Of The World Unite”: Namma Yatri launches welfare trust for its Karnataka driver partners

Namma Yatri has announced the launch of the Namma Driver Welfare Trust, a step toward securing the financial and social well-being of its driver partners across Karnataka.

Funded by 2% of the platform’s revenue, the trust will be independently governed, with driver representatives and external advisors overseeing its operations. Set to begin accepting applications in July, the trust is expected to become fully operational by August 15.

Read more here

“Aao Twist Kare”: MyGate Elevates Rohit Jindal To Cofounder

MyGate just gave its leadership a new twist - Rohit Jindal has been elevated to cofounder status.

Announced by existing cofounder Abhishek Kumar on LinkedIn, the move recognizes Jindal’s solid track record across big names like Practo, HSBC, and Citibank. Looks like the gate to bigger things at MyGate just opened wider.

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1. AuraML has raised $1Mn in a pre-seed round led by Turbostart to build a generative simulation platform for robotics. The funds will power its US expansion and enterprise pilots in warehouse automation.
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2. D2C jewellery brand GIVA has raised ₹530 Cr in a round led by Creaegis, pushing its valuation to $374 Mn. The startup also elevated COO Aditya Labroo to cofounder as it eyes deeper market sparkle.
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3. Defence tech startup Armory, founded by a former ideaForge executive, has raised ₹13 Cr in a round led by growX ventures. The funds will fuel R&D and scale up manufacturing of its indigenous anti-drone systems.
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4. Sahi, a trading startup founded by a former Swiggy executive, has raised $10.5 Mn in Series A funding led by Accel and Elevation. The capital will fuel product development, team expansion, and market growth for its AI-driven trading platform.
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5. Amicus Capital has closed its second fund at $214 Mn, surpassing its original $200 Mn target. The SEBI-registered AIF aims to back high-growth mid-market businesses across India.
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