Meesho, the SoftBank-backed e-commerce company, is set to go public in India. The company plans to raise USD 1 billion (~INR 8,600 crore) and will be valued at USD 10 billion. According to some industry reports, Morgan Stanley, Kotak Mahindra Capital and Citi have been appointed as lead managers. JP Morgan is close to joining the syndicate.
Meesho IPO Filing and Timeline
The DRHP is expected to be filed with SEBI in a few weeks. Meesho is looking to list between September and October, around Diwali. This timeline is ahead of Flipkart which is still waiting for a go-ahead from Walmart.
A USD 10 billion valuation will significantly increase from Meesho’s last reported valuation of USD 3.9 billion in 2024. The company has been growing steadily with investor confidence and fresh capital. In recent funding rounds, Meesho has raised USD 550 million (~INR 4,700 crore) from investors like Tiger Global, Peak XV, Think Investments, Mars Growth Capital and WestBridge Capital.
Meesho IPO – Reverse Merger Process
A critical step in the Meesho IPO process is the relocation of its headquarters from Delaware to India. The company has filed with NCLT for a reverse merger between its Indian entity Fashnear Technologies and its US parent company. This will trigger a tax liability of around USD 300 million (INR 2,580 crore) but is necessary for regulatory compliance.
Financials
The company’s financials show growth and discipline. Revenue has grown from IR 3,240 crore in FY22 to INR 5,735 crore in FY23 and then to INR 7,615 crore in FY24. Net losses have come down significantly from INR 3,248 crore in FY22 to INR 305 crore in FY24. Most importantly Meesho reported an operating cash flow of INR 232 crore in FY24 — the first for any horizontal e-commerce company in India.
Market Strategy and User Base
Meesho has focused on Tier 3 and smaller markets, catering to value-conscious consumers and it has worked for the company. The company saw 35% growth in order volumes in 2024 and now has around 175 million annual transacting users. Almost 50% of these users are from Tier 4 towns and beyond.
Bottomline
India’s e-commerce market currently stands at USD 70 billion and it is expected to be USD 325 billion by 2030. Meesho’s listing will put it in the same league as other big Indian startups like PhysicsWallah, Ather Energy and Lenskart which are also going public to raise valuations higher than their private rounds.
Meesho’s transformation from a reseller platform to a horizontal e-commerce company has been fast but measured. With bankers in place, strong financials and regulatory restructuring underway Meesho IPO is ready to be one of India’s biggest tech public offers. If it succeeds Meesho will not only be ahead of Flipkart in the markets but also prove that profitability and scale can go together for Indian startups.
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