Meesho to raise ₹5,421 crore at ₹50,096 crore valuation; IPO to open on Dec 3

The highly anticipated initial public offering (IPO) of e-commerce firm Meesho is set to hit Dalal Street on December 3, aiming to raise ₹5,421 crore through a public listing on the domestic bourses. The unicorn has set the price band at ₹105–₹111 per equity share, valuing the company at ₹50,096 crore ($5.6 billion) at the upper end of the range.

The allocation to anchor investors will take place on December 2, while the three-day issue will open on December 3 and close on December 5. The allotment for the Meesho IPO is expected to be finalised on December 8, and the shares are scheduled to list on the BSE and NSE on December 10, 2025.

The IPO of the Bengaluru-based company comprises a fresh issue of equity shares worth ₹4,250 crore and an offer for sale (OFS) of 10.55 crore shares worth ₹1,171 crore. Among the selling shareholders in the OFS are Elevation Capital, Peak XV Partners, Golden Summit, Y Combinator, and the promoters.

The promoters currently hold 18.5% in Meesho, while public shareholders own 81.5% of the company. The largest shareholders include Elevation Capital (15.11%), Prosus' Naspers Ventures (12.34%), and Peak XV Partners (11.3%), followed by SoftBank-owned SVF II Meerkat (9.3%) and WestBridge Crossover Fund (3.92%).

The lot size for the IPO is 135 equity shares and in multiples thereafter.

Backed by marquee investors including SoftBank, Prosus, and Elevation Capital, Meesho filed its updated draft red herring prospectus (UDRHP) with the market regulator Sebi on October 18. The company had submitted their IPO paper through a confidential route in July this year, which was approved by the regulator on October 14.

Meesho plans to use the proceeds from its fresh equity issuance to enhance its cloud infrastructure through its subsidiary, Meesho Technologies Private Limited, support salaries for its AI, machine learning and technology teams, and step up investments in marketing, brand building and strategic acquisitions. A portion of the funds will also be allocated to general corporate purposes.

In FY25, Meesho became India’s largest e-commerce platform in terms of annual transacting users (ATUs) and annual placed orders, connecting more than 500,000 sellers with around 199 million ATUs and processing 1.8 billion orders. User engagement continued to strengthen—ATUs rose 28% year-on-year to about 213 million for the 12 months ending June 2025. Order frequency also improved from 7.5x in FY23 to 9.4x by mid-2025, signalling deeper buyer loyalty.

According to the DRHP, total orders grew from 1 billion in FY23 to 1.8 billion in FY25, with 562 million orders recorded in the June 2025 quarter alone—a 50% increase year-on-year. Growth was broad-based: orders from the top eight cities jumped 46%, outpacing the platform’s overall 37% expansion.

Meesho’s net merchandise value (NMV) climbed 29% year-on-year to ₹29,988 crore in FY25, and accelerated further in Q1 FY26 to ₹8,679 crore—up 36% from the same period last year.

Despite aggressive investments, Meesho turned free cash flow positive in FY25, swinging from a negative ₹2,336 crore in the previous year to a positive ₹1,032 crore (including interest income). Its loss before tax and exceptional items narrowed sharply to ₹108 crore in FY25 from ₹1,672 crore in FY23. However, net loss widened to ₹3,942 crore due to one-time charges tied to its corporate restructuring and “reverse flip” tax liabilities.

In Q1 FY26, the company continued to scale operations, reporting a 36% rise in NMV and a 50% increase in orders. Higher spending on technology and servers pushed its loss before exceptional items to ₹148 crore, while net loss stood at ₹289 crore—reflecting its ongoing expansion strategy.

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