Meesho receives Sebi nod for ₹6,600-crore IPO
Bengaluru: E-commerce marketplace Meesho receives regulatory approval ₹6,600-crore initial public offering in which some of its early investors, including Elevation Capital and Peak XV Partners, will cash in by selling some of their stakes in the company.
Will talk about Meesho ₹4,250 crore in IPO by issuing new shares. The remaining IPO amount will come from the offer-for-sale component, in which shareholders sell their shares to new investors.
The digital marketplace, founded by Vidit Aatrey and Sanjeev Barnwal in 2015, is targeting a public listing in December, according to an updated IPO document filed with the Securities and Exchange Board of India on Sunday.
Meesho’s CEO Aatrey and chief technology officer Barnwal will also sell some of their shares in the company during the IPO.
The Bengaluru-based company, which moved its headquarters from the US to India in June, reported a net loss. ₹3,941 crore for 2024–25. In its IPO filing, the company attributed the loss to “one-time IPO-related costs, including reverse tax and surtax required for the company’s transition to a publicly traded structure.”
By other financial measures, the company has performed well in FY25.
Meesho’s FY25 operating income increased by 25% ₹9,390 crore and its net business value increased by 30% ₹30,000 crore. Net product value is gross sales excluding returns and cancellations but including taxes.
Meesho’s annual transacting user base grew nearly 28% in FY25 and reached 213 million in the April-June quarter. Between FY23 and FY25, the company’s order frequency increased from 7.5 times to 9.2 times per year, Meesho said in its IPO filing.
Meesho’s growth drivers
Meesho’s logistics arm Valmo has emerged as the company’s biggest growth driver, handling nearly 300 million shipments in April-June, surpassing logistics platforms like Delhivery Ltd, according to industry executives.
Of course, Valmo has fulfilled about 61% of Meesho’s orders since its launch in February last year.
Meesho, which also focuses on online shoppers in tier 2 and tier 3 cities and beyond, has raised more than $1.3 billion in private funding and was last valued at nearly $4 billion.
According to Bain & Co.’s March report, e-commerce adoption is already spreading from tier 2 cities to tier 3 cities; Three in five new shoppers since 2020 are from cities designated as tier 3 or lower.
Meesho had first submitted a confidential draft IPO to Sebi in July. Confidential pre-IPO filings allow companies to keep sensitive information private longer and submit updated documents closer to the actual share sale.
Shadowfax Technologies, Steamhouse India, Groww and Physics Wallah also chose the private route for their IPOs.
