Meesho Moves to Public Markets with IPO Announcement
E-commerce marketplace Meesho has taken a significant step towards entering public markets by submitting its red herring prospectus (RHP). The company based in Bengaluru is set to open its IPO for subscriptions on December 3, concluding this on December 5, while anchor investors will have a chance to participate a day earlier on December 2. This strategic move places Meesho among the most anticipated listings for 2025.
Meesho has established its price band ranging from Rs 105 to Rs 111 per share, which suggests an overall offering size of approximately Rs 5,421 crore at the higher end. This initial public offering includes a fresh issuance worth Rs 4,250 crore alongside an Offer for Sale (OFS) comprising 10.55 crore shares from early investors and some founders. Various investors, such as Elevation Capital, Peak XV Partners, and Venture Highway, will partially exit through the OFS, cashing in on a fraction of their long-term holdings in the firm.
For Meesho, the newly raised capital aims to enhance its technology infrastructure, broaden its cloud capabilities, increase brand recognition, and possibly pursue acquisitions. According to estimates from Startup Superb, the company has positioned itself with a valuation of $5.8 billion at the upper price limit.
The company has maintained a strong focus on its value-oriented e-commerce strategy, establishing itself as a major player in India’s tier-II markets and beyond. Its asset-light model, zero-commission seller approach, and competitive pricing tactics have facilitated the development of a high-frequency user base, although achieving profitability remains a challenge.
In the last fiscal year, the firm reported a revenue of Rs 9,390 crore, with losses before exceptional items and tax amounting to Rs 108 crore during the same period. For the first half of the current fiscal year (H1 FY26), it has revealed a revenue of Rs 5,577 crore.
As per the outlined timetable, the basis of allotment will be concluded on December 8, with share refunds and credits scheduled for December 9, leading to a potential listing on December 10. If all goes well, Meesho will join the ranks of Indian consumer-internet giants that have successfully transitioned to public markets over the last three years.
