Meesho will raise about ₹4,250 crore in the IPO by issuing new shares. The remaining IPO amount will flow from an offer-for-sale component, in which shareholders sell their shares to new investors.
The digital marketplace, which was founded in 2015 by Vidit Aatrey and Sanjeev Barnwal, is targeting a public market listing in December, as per its updated IPO document, filed with the Securities and Exchange Board of India on Sunday.
Aatrey, Meesho’s chief executive, and Barnwal, the chief technology officer, will also sell some of their stakes in the company during the IPO.
The Bengaluru-based company, which moved back its headquarters to India from the US in June, reported a net loss of ₹3,941 crore for 2024–25. In its IPO filing, the company pinned the loss on “one-time IPO related costs, including reverse flip tax and perquisite tax which were necessary for the company’s transition to a public structure”.
On other financial metrics, the company did well in FY25.
Meesho’s FY25 operating revenue jumped 25% to ₹9,390 crore, and its net merchandise value increased 30% to ₹30,000 crore. Net merchandise value is gross sales excluding returns and cancellations, but inclusive of taxes.
Meesho’s annual transacting user base grew by about 28% in FY25, and hit 213 million in the April-June quarter. Between FY23 and FY25, the company’s order frequency improved from 7.5 times to 9.2x per year, Meesho said in its IPO document.
Meesho’s growth drivers
Meesho’s logistics arm, Valmo, has emerged as the company’s biggest growth driver, handling about 300 million shipments in April–June, outpacing logistics platforms such as Delhivery Ltd, according to industry executives.
To be sure, Valmo has handled nearly 61% of Meesho’s orders since it was launched 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.
E-commerce adoption is already spreading from tier-2 to tier-3 cities, with three in five new shoppers since 2020 coming from cities designated tier-3 or smaller, according to a March report by Bain & Co.
Meesho had originally filed a confidential IPO draft prospectus with Sebi in July. Confidential pre-IPO filings allow companies to keep sensitive information private for a longer duration and submit updated documents closer to the actual share sale.
Shadowfax Technologies, Steamhouse India, Groww, and Physics Wallah, too, have opted for the confidential route for their IPO.
