E-commerce platform Meesho has filed an updated draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI). The move marks another big step toward its much-awaited initial public offering (IPO).
IPO Details and Fundraising Plans
According to sources, Meesho now plans to raise $700–800 million through the IPO. This includes a $500 million fresh issue and an offer-for-sale (OFS) component worth $200–300 million. The Bengaluru-based company had earlier filed a confidential DRHP in July 2024, which proposed only a $500 million primary issue.
The updated filing now provides a clearer picture of Meesho’s equity structure and includes details of existing shareholders who plan to sell part of their stakes through the OFS route.
Investment banks such as Kotak Mahindra Capital, Morgan Stanley, Citi, and Axis Capital are managing the IPO. The company aims to get listed by December 2025 or January 2026.
Ahead of the listing, Meesho also plans to raise up to INR 850 crore via a pre-IPO placement. This amount will be adjusted from the fresh issue proceeds.
Key Shareholders and OFS Details
As part of the OFS, major investors including Elevation Capital, Peak XV Partners, and Venture Highway will sell some of their holdings. Founders Vidit Aatrey and Sanjeev Kumar will also offload 1.1 crore shares each.
Nitin Konde
Use of IPO Proceeds
Meesho plans to use the funds raised from the IPO for several key initiatives:
- INR 1,390 crore will go toward cloud infrastructure for Meesho Technologies Private Limited.
- INR 480 crore will be used for salaries of existing and new hires in its AI, machine learning, and technology teams.
- INR 1,020 crore will support marketing and brand campaigns.
- The remaining funds will be used for acquisitions, strategic investments, and general corporate purposes.
Financial Performance
Meesho reported strong growth in FY25 with operating revenue of INR 9,389 crore, up 23% from INR 7,615 crore in FY24. Its total expenses increased 24% to INR 10,009 crore in FY25.
The company posted a net loss of INR 3,914 crore for FY25, compared to INR 327 crore in FY24. However, most of this loss came from one-time exceptional items, mainly reverse flip tax and perquisite tax, linked to Meesho’s restructuring and redomiciling process. Excluding these, Meesho’s actual operating loss was only INR 108 crore.
In the first quarter of FY26, Meesho reported revenue of INR 2,503 crore and total expenses of INR 2,777 crore.
| Financial Year / Period | Operating Revenue (INR Cr) | Total Expenses (INR Cr) | Net Loss (INR Cr) | Notes |
|---|---|---|---|---|
| FY24 | 7,615 | 8,173 | 327 | Baseline year before redomiciling |
| FY25 | 9,389 | 10,009 | 3,914 | Includes one-time reverse flip & perquisite tax (INR 3,883 Cr) |
| FY25 (Excl. exceptional items) | 9,389 | 10,009 | 108 | Adjusted operating loss |
| Q1 FY26 | 2,503 | 2,777 | — | Quarterly performance |
Continued Growth and Market Outlook
Meesho’s Net Merchandise Value (NMV) grew 29% year-on-year to INR 29,988 crore in FY25, showing strong customer activity. In Q1 FY26, NMV growth accelerated to 36%, reaching INR 8,679 crore.
The company’s focus on affordability, digital adoption, and small business empowerment continues to strengthen its position as one of India’s fastest-growing e-commerce platforms.
Nitin Konde
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