Meesho Private Limited: A Strategic Name Change Before the IPO

Meesho, a well-established e-commerce platform, has recently transitioned its legal name to Meesho Private Limited, as part of a strategic initiative ahead of its public offering.

Details of the Name Change

The company’s board and members have ratified a special resolution to rename the entity from “Fashnear Technologies Private Limited” to “Meesho Private Limited,” as disclosed in a regulatory filing with the Registrar of Companies (RoC).

Meesho’s Brand Strength

Meesho has cultivated a strong reputation, market dominance, and a high level of customer trust within the digital commerce landscape. The company has been functioning under the Meesho brand for several years, and given the substantial brand equity it has developed, the board asserts that aligning the corporate identity with the brand name is a vital advancement, according to the filing.

Preparing for a $1 Billion IPO

This announcement arrives just a month following reports that Meesho is gearing up for a $1 billion initial public offering (IPO). Media sources indicate that the firm has selected Morgan Stanley, Kotak Mahindra Capital, and Citi as its advisory team for the IPO, with ongoing discussions aimed at incorporating JP Morgan into the syndicate.

Valuation and Future Plans

Bankers have reportedly assessed Meesho’s valuation at $10 billion in relation to its IPO, with expectations to submit draft documents in the forthcoming months. The company is aiming for a stock exchange listing around Diwali this year.

Employee Benefits and Options

In 2024, Meesho also initiated its largest ESOP buyback program, valued at Rs 200 crore (approximately $25 million), which will benefit around 1,700 current and former employees across various levels, from junior staff to senior management. Earlier this month, the co-founders exercised options totalling 27 lakh, valued at $120 million. Startup Superb was the first to disclose this news last month.

Financial Performance

On a year-on-year basis, Meesho reported a 33% increase in revenue, reaching Rs 7,615 crore for the fiscal year ending in March 2024. The company successfully reduced its adjusted losses by 97%, which now stands at Rs 53 crore. In the first nine months of FY25, Meesho delivered a remarkable 1.3 billion orders.