Meesho Gets SEBI Approval for ₹6,600 Crore IPO
E-commerce platform Meesho has secured regulatory approval from SEBI for its ₹6,600-crore initial public offering, paving the way for one of India’s most anticipated market debuts in December.
Key Takeaways
- Meesho receives SEBI nod for ₹6,600 crore IPO
- Company targets December listing with ₹4,250 crore fresh issue
- Founders and early investors to partially exit through offer-for-sale
- Despite ₹3,941 crore loss in FY25, revenue grew 25% to ₹9,390 crore
IPO Structure and Timeline
The IPO comprises a fresh issue of ₹4,250 crore and an offer-for-sale component where early investors including Elevation Capital and Peak XV Partners will sell part of their stakes. Founders Vidit Aatrey and Sanjeev Barnwal will also divest some of their holdings.
According to documents filed with SEBI on Sunday, the company founded in 2015 is targeting a December listing. The Bengaluru-based firm recently moved its headquarters back to India from the US in June.
Financial Performance
Meesho reported a net loss of ₹3,941 crore for 2024-25, attributing it to “one-time IPO related costs, including reverse flip tax and perquisite tax which were necessary for the company’s transition to a public structure”.
However, the company showed strong operational growth with FY25 operating revenue jumping 25% to ₹9,390 crore and net merchandise value increasing 30% to ₹30,000 crore.
User Growth and Engagement
Meesho’s annual transacting user base grew by approximately 28% in FY25, reaching 213 million in the April-June quarter. Order frequency improved significantly from 7.5 times per year in FY23 to 9.2x in FY25, indicating stronger customer engagement.
Valmo: The Logistics Advantage
Meesho’s logistics arm Valmo has become its biggest growth driver, handling about 300 million shipments in April-June quarter – outpacing established logistics platforms. Since its launch in February last year, Valmo has managed nearly 61% of Meesho’s orders.
Tier-2 and Tier-3 Market Focus
The company’s strategy focusing on smaller cities continues to pay dividends. According to Bain & Co, three in five new shoppers since 2020 have come from tier-3 cities or smaller, validating Meesho’s market approach.
Meesho has raised over $1.3 billion in private funding and was last valued at nearly $4 billion. The company had filed a confidential IPO draft with SEBI in July, joining other startups like Shadowfax Technologies, Steamhouse India, Groww, and Physics Wallah in opting for this route.
