Meesho has gotten into a big corporate fight with AWS (Amazon Web Services). AWS is claiming Meesho owes unpaid cloud bills worth INR 127 crore (around $14.4 million). In contrast, Meesho says AWS didn’t deliver its best services, resulting in losses. Now, many wonder what could happen to Meesho’s image? Will this legal battle with AWS impact Meesho’s plans for IPO? Whose side is stronger in the lawsuit? For all that, learn more.
What AWS Says?
AWS directly bashed Meesho for not paying its cloud bills and for breaching certain contract terms. AWS says:
- The legal battle concerns their deal, the Private Pricing Addendum (PPA), signed in February 2022.
- Under the deal, AWS accused Meesho of failing to meet its minimum spending commitment.
- AWS approached a three-member arbitration tribunal in New Delhi (it’s a legal panel that looks after business disputes under India’s Arbitration and Conciliation Act, 1996).
Apparently, AWS is demanding INR 127.45 crore, which includes:
- The unpaid “spend shortfall” (meaning the money Meesha promised in the deal to spend but didn’t).
- Pending service fees.
- Interest on delayed payments.
- Legal/arbitration costs.
What Meesho Says?
Meesha strongly disagrees with AWS’s claims.
In its defence, Meesho argues:
- AWS didn’t deliver the services it promised, and Meesho had to settle for poor-quality services and received insufficient technical support.
- And due to AWS’s fault, Meesha had to suffer business disruptions and losses.
On 31, Meesho filed a counterclaim asking AWS to pay INR 86.49 crore for damages like:
- Losses due to AWS service disruptions.
- Salary losses that the company had to bear while moving (migrating) away from AWS.
- Interest on the losses and legal costs.
AWS replied to these claims in March 2025. The case is still under review by the arbitration tribunal.
Why Does This Matter to Meesho?
Meesho’s business model depends heavily on cloud services like AWS for almost everything it does, like:
- Managing orders..
- Handling payments.
- Running its product recommendation systems.
According to Meesha, it has processed over 1.59 billion orders in FY25. So, any issue in the cloud system could directly impact its business and raise costs on almost everything.
To avoid these problems, Meesho plans to invest INR 1,390 crore (out of the INR 4,250 crore in the upcoming IPO) in cloud infrastructure technology.
What Else Is Meesho Facing Legally?
Well, Meesho is another legal battle on tax and vendor disputes worth INR 710 crore. And there’s an INR 572 crore income tax claim as well. It had mentioned these in its IPO filing (DRHP).
Why Meesho’s Investors Care?
Meesho is expected to go public in 2026. Although it has strong cash flow and positive growth, the legal battle with AWS could damage its image. Cases like these can shake investors’ trust in the company.
Anik Banerjee
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