Highlights
Meesho’s co-founders, Vidit Aatrey and Sanjeev Kumar, have taken action on equity shares in line with the company’s 2024 ESOP plan. This development occurs as Meesho prepares for its Initial Public Offering (IPO).
According to regulatory filings obtained from the Registrar of Companies (RoC), the board of Meesho has approved the allocation of 20,65,211 equity shares to Vidit Aatrey and 6,59,323 equity shares to Sanjeev Kumar following their exercise of stock options.
Startup Superb has estimated that the shares exercised under the 2024 ESOP plan are valued at about Rs 1,023 crore ($120 million). Nonetheless, a spokesperson from Meesho has asserted that these shares are not new additions, but rather part of the previously designated ESOP pool. The valuation mentioned in some communications has been labeled incorrect, as the shares do not possess any additional value; they are merely existing ESOPs that the founders opted to exercise.
Meesho’s IPO Plans and Valuation
Meesho is on track to go public this year and has plans to raise $1 billion through its IPO. Reports in the media suggest that the company is preparing to file its draft documents soon and is aiming for a listing around Diwali.
ESOP Buyback Initiative
In 2024, Meesho announced its largest ESOP buyback programme to date, valued at Rs 200 crore (around $25 million). This initiative is designed to benefit approximately 1,700 past and current employees, ranging from junior employees to senior management.
Meesho’s Market Position and Performance
Meesho stands as the third largest horizontal e-commerce company in India, following Flipkart and Amazon. The Bengaluru-based platform primarily focuses on value-conscious consumers across tier II and III cities. Additionally, it manages a logistics platform named Valmo, which currently oversees more than 50% of its total orders.
In the fiscal year ending March 2024, the firm achieved a 33% year-on-year revenue growth, reaching Rs 7,615 crore, while simultaneously reducing its adjusted losses by 97% to Rs 53 crore during the same timeframe. Remarkably, in the initial nine months of FY25, the company claims to have completed 1.3 billion orders.
