Indian E-commerce Giant Meesho Files Confidential IPO Papers, Eyes ₹4,250 Crore Raise
Indian e-commerce unicorn Meesho has taken a significant step toward going public by filing a confidential Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI). The Bengaluru-based startup aims to raise Rs 4,250 crore (approximately $500 million) in primary capital through its Initial Public Offering (IPO), with a potential total IPO size of up to $1 billion, including an offer-for-sale (OFS) component. This move positions Meesho to become the first horizontal e-commerce company to list on Indian stock exchanges, marking a pivotal moment for India’s startup ecosystem.
Meesho’s Journey to IPO
Founded in 2015 by IIT alumni Vidit Aatrey and Sanjeev Barnwal, Meesho has emerged as a leading player in India’s competitive e-commerce market, rivaling giants like Amazon and Flipkart. The company’s focus on value-conscious consumers in Tier 3 and smaller markets has driven its rapid growth, with a reported gross merchandise value (GMV) of $6.2 billion in FY25, making it India’s third-largest e-commerce platform by GMV. Meesho’s revenue surged 33% year-on-year to Rs 7,615 crore in FY24, while its losses narrowed significantly to Rs 305 crore from Rs 3,248 crore in FY22, showcasing its path to profitability.
Key Details of the Meesho IPO
Meesho’s IPO includes a fresh equity issue of Rs 4,250 crore and an OFS by existing shareholders, with prominent investors like Elevation Capital, Peak XV Partners, Prosus, SoftBank, and WestBridge Capital holding significant stakes. The company has opted for SEBI’s confidential filing route, allowing it to refine its IPO plans without disclosing sensitive financial details publicly. Meesho is eyeing a listing around September-October 2025, with Citi, Kotak Mahindra Capital, Morgan Stanley, and Axis Capital appointed as bankers for the IPO.
Strategic Moves Ahead of the IPO
In preparation for its public listing, Meesho completed a reverse flip, shifting its domicile from Delaware, USA, to India, a move approved by the National Company Law Tribunal (NCLT) in June 2025. This restructuring aligns with Meesho’s commitment to the Indian market and facilitates its domestic listing. Additionally, shareholders approved the appointment of co-founder Vidit Aatrey as Chairman, Managing Director, and CEO, consolidating leadership as the company gears up for this milestone. Meesho also expanded its 2024 employee stock option plan (ESOP) by adding 1.1 million options, bringing the total to 7.5 million, signaling confidence in its growth trajectory.
Why Meesho’s IPO Matters
Meesho’s IPO is a landmark event for India’s startup ecosystem, reflecting a growing trend of tech companies opting for public listings. The company’s focus on social commerce and its BharatMLStack, an open-source AI platform that powered 66.9 trillion feature retrievals in FY25, underscores its technological innovation. As India’s IPO market rebounds, with $5.86 billion raised globally as of June 30, 2025, Meesho’s listing could redefine valuations for the social commerce segment and inspire other Indian startups like Groww and Shadowfax, which have also filed confidential IPO papers.
Conclusion
Meesho’s filing for a Rs 4,250 crore IPO marks a defining moment for the Indian e-commerce landscape. With its strong financial performance, strategic restructuring, and focus on Tier 3 markets, Meesho is poised to make a significant impact on India’s stock exchanges. As the company prepares for its anticipated September-October 2025 listing, investors and industry observers are keenly watching how this unicorn will shape the future of e-commerce in India. Stay tuned for more updates on Meesho’s journey to becoming a publicly listed company.
Stay tuned for more updates on Meesho’s IPO and other breaking tech news!