Meesho’s Rs 4,250 Crore IPO Filing

E-commerce unicorn Meesho has confidentially submitted its draft red herring prospectus (DRHP) to the Securities and Exchange Board of India (SEBI) aiming to raise Rs 4,250 crore, approximately $500 million, via a primary share issue, as reported by Startup Superb. This filing follows Meesho’s recent transition back to India and its evolution into a public company last month.

Details of the IPO Filing

Previous reports had indicated that Meesho was targeting a $1 billion IPO comprising both primary and secondary elements. However, the new focus on the $500 million primary share issue raises uncertainties about the offer-for-sale (OFS) segment. Some early investors may have the chance to achieve partial exits with beneficial returns.

In response to inquiries from Startup Superb, Meesho opted not to provide any comments on the situation.

Bankers Involved in the IPO

Meesho has enlisted the assistance of Citi, Kotak Mahindra Capital, Morgan Stanley, and Axis Capital as bankers for its forthcoming initial public offering (IPO).

Financial Implications of Meesho’s Reverse Flip

Meesho’s reverse flip, an essential progression towards its public listing, reportedly cost the company around $288 million. Previously headquartered in the US, Meesho had not revealed its complete shareholding structure. However, following the reverse flip, reviews of the company’s filings by Startup Superb indicate that Elevation Capital is the largest external shareholder, holding a 14.49% stake, with Peak XV following closely at 13.64%. Additionally, SoftBank and Prosus possess 13.14% and 9.91%, respectively.

Performance Metrics

For the fiscal year ending March 2024, the company has demonstrated impressive growth, achieving a 33% year-on-year revenue increase to Rs 7,615 crore. Meanwhile, its adjusted losses significantly decreased by 97% to reach Rs 53 crore in FY24. The company is yet to present its financial statements for FY25.

Confidential Filing Trend in Indian Startups

Meesho is now the seventh company from the Indian startup ecosystem to opt for a confidential approach in filing draft IPO documents in 2025. Previous companies like Shadowfax, PhysicsWallah, Groww, Shiprocket, boAt, and Aequs have also pursued this confidential filing route.