Meesho Files for ₹4250 Crore IPO: Aiming to Become India’s First Horizontal E-Commerce Giant to List
In a bold move that could redefine India’s digital commerce landscape, social commerce platform Meesho has filed a confidential Draft Red Herring Prospectus (DRHP) with SEBI, marking the beginning of its highly anticipated ₹4250 crore initial public offering (IPO).
With plans to list on Indian stock exchanges by September–October 2025, Meesho aims to become India’s first horizontal e-commerce company to go public, outpacing heavyweight rivals like Flipkart and Jiomart.
Company Overview: Meesho
- Founded: 2015 by Vidit Aatrey and Sanjeev Barnwal
- Headquarters: Bengaluru, India
- Business Model: Social commerce platform enabling individuals (mostly homemakers & small businesses) to resell products via WhatsApp, Facebook, Instagram, etc.
Key Features:
- Zero commission from sellers
- Focus on Tier 2+ cities and value-conscious buyers
- Own logistics arm – Valmo
IPO Structure: A Balanced Offering
The IPO will include:
- A primary share issuance of ₹4,250 crore, meant to raise fresh capital for business expansion and technological advancements.
- An offer-for-sale (OFS) component worth an additional ₹4,250 crore, enabling early investors like SoftBank, Prosus Ventures, and Peak XV Partners to partially exit.
This dual approach brings the total IPO size to ₹8,500 crore, or approximately $1 billion, placing it among the most significant public offerings of the year.
From Startup to Profitable Giant
Founded in 2015 by Vidit Aatrey and Sanjeev Barnwal, Meesho has evolved from a reseller-focused app into a full-fledged, zero-commission e-commerce platform that empowers millions of small businesses across India, particularly in Tier-2 and Tier-3 cities.
In FY24, Meesho posted:
- Revenue: ₹7,615 crore (up 33% YoY)
- Orders: 1.8 billion (up 37% YoY)
- Net loss: Narrowed sharply from ₹1,675 crore to just ₹53 crore
Notably, the company achieved profitability in the second half of FY24—a critical milestone ahead of its public debut.
Meesho Financials (FY24) –
| Metric | FY24 | FY23 |
|---|---|---|
| Revenue | ₹7,615 crore | ₹5,735 crore |
| Net Loss | ₹53 crore (narrowed 97%) | ₹1,675 crore |
| EBITDA | Nearly breakeven | Substantial negative margin |
| Orders Processed | 1.8+ billion | 1.3 billion |
| Cash Reserves | Over $300 million | – |
Strategic Changes Before Listing
In preparation for the IPO:
- Meesho converted from a private to a public limited company in India
- It shifted its domicile from Delaware (U.S.) to India
- Approved internal restructuring including ESOP expansion and board governance realignment
By adopting SEBI’s pre-filing (confidential) route, Meesho gains flexibility to adapt the IPO terms based on market dynamics—a strategy recently favored by high-growth tech firms.
Backed by Global Investors
Meesho’s growth has been supported by some of the world’s top venture capital and strategic investors:
- SoftBank Vision Fund
- Prosus Ventures
- Peak XV Partners (formerly Sequoia India)
- Meta (formerly Facebook)
- Elevation Capital
With a current valuation in the range of $3.9–4.0 billion, the company is expected to command a premium listing backed by its strong fundamentals and unique market positioning.
A Watershed Moment for Indian E-Commerce
If successful, the Meesho IPO will open the floodgates for more digital-first Indian unicorns to enter public markets. It also reflects a maturing consumer ecosystem outside metro cities, where Meesho has firmly entrenched itself as the preferred low-cost e-commerce platform.
The offering could serve as a blueprint for future listings from companies like Udaan, Flipkart, DealShare, and Snapdeal—each seeking to capitalize on India’s booming internet economy.
Looking Ahead
While the exact price band, lot size, and listing date are yet to be disclosed, all eyes are now on SEBI’s approval process and the company’s final public filing, expected in the coming months.
For now, Meesho’s IPO is being watched closely—not just by investors and analysts—but by the millions of Indian entrepreneurs and users who helped build it from the ground up.
