Homegrown e-commerce giant Meesho has taken a significant step toward becoming a publicly listed company. The firm filed a confidential Draft Red Herring Prospectus (DRHP) with SEBI to raise ₹4,250 crore (approximately $500 million) in fresh equity capital. Shareholders have approved the move and key structural changes, positioning Meesho for a landmark IPO.
What Meesho Plans to Raise
Meesho intends to raise ₹4,250 crore through a fresh issue of shares. There will also be an offer-for-sale (OFS) by existing investors. Combined, the IPO could total around ₹8,500 crore—including primary issuance and secondary sales.
Confidential DRHP Filing
Meesho has chosen the confidential filing route under SEBI’s updated IPO rules. This allows the company to submit its IPO draft privately, avoiding premature media reporting. Once the IPO is finalised, the DRHP will be made public.
Leadership and Governance Update
Along with fundraising, Meesho has confirmed expanded leadership roles:
- Vidit Aatrey, co-founder and CEO, has been named Chairman, MD, and CEO.
- Board reshuffle was approved: representatives from SoftBank and Prosus stepped down, while board seats were retained by Elevation Capital and Peak XV Partners.
Strategic Domicile Shift to India
Meesho recently merged its US-based parent with its Indian entity and now operates under Meesho Private Limited, domiciled in India. This “reverse-flip” realignment was completed in May via NCLT approval.
This move aligns the company with Indian regulatory requirements for listing and strengthens its case for a domestic IPO.
Strong Financial and Operational Performance
- Orders: Meesho processed over 1.8 billion orders in FY25 — a 37% increase from FY24’s 1.3 billion.
- Users: It serves nearly 190 million users across India.
- Revenue: The company’s annual revenue stands at approximately ₹7,615 crore, with a significant improvement in bottom-line performance.
This combination of scale and improving profitability strengthens Meesho’s IPO readiness.
Why This IPO Matters
- First Horizontal E-Commerce Listing: Meesho would become the first broad-based marketplace in India to enter stock markets, following the path of niche platforms like Nykaa and Mamaearth.
- Enabling Other Tech Firms: A successful IPO could encourage similar e-commerce rivals, including Flipkart, to launch public offerings.
- Ward Against Tax & Regulation Risks: The domicile shift helps resolve legal and tax uncertainties tied to foreign registration ahead of listing.
What Will IPO Funds Be Used For?
Specific details are pending, but indications suggest Meesho will use IPO proceeds to:
- Invest in the Valmo logistics arm to enhance delivery infrastructure and reliability.
- Scale up technology and AI systems for seller onboarding, search, and recommendation.
- Expand user acquisition and marketing to reach wider demographics, especially in Tier 2 & 3 towns.
- From the current fundraising stage, Meesho will decide the mix of primary capital and OFS closer to the IPO launch.
Next Steps and Timeline
- DRHP Submission: Scheduled confidential submission to SEBI in the coming weeks.
- Public DRHP: Will be shared once SEBI clears the draft under the rules.
- Listing Timeline: Targeted for late 2025 or early 2026, depending on market conditions and regulatory approvals.
- Bankers: Meesho has appointed leading investment banks, including Kotak Mahindra, Morgan Stanley, JPMorgan, and Citi, as lead managers.
Investor Confidence
Key backers—Elevation Capital, Peak XV, Prosus, SoftBank, WestBridge, and Fidelity—continue to hold significant stakes (10–15%). Their board engagement signals continued belief in Meesho’s long-term potential.
Final Take
Meesho’s confidential DRHP filing marks a significant milestone, not just for the company, but for India’s digital economy. With strong financial momentum, strategic structural changes, and a robust governance setup, Meesho is well-positioned to become a leading public e-commerce marketplace.
For investors and market watchers, Meesho’s IPO could set the tone for a new wave of listings by horizontal consumer-tech platforms. Its success could influence valuations, regulatory responses, and investor appetite for India’s next generation of tech-driven businesses.
