Meesho IPO Plans Updated Draft with Significant Fundraising Goals

E-commerce platform Meesho has submitted a revised draft red herring prospectus (DRHP) to the Securities and Exchange Board of India (SEBI), as reported by two knowledgeable sources. Meesho is now targeting a fundraising goal of $700–800 million through its initial public offering (IPO), which consists of a $500 million fresh issue alongside an offer-for-sale segment ranging from $200–300 million. One source, who chose to remain anonymous, disclosed this information.

Background on Meesho’s IPO Journey

This update follows Meesho’s previous confidential DRHP submission made in July, which originally estimated the primary issue at $500 million. The latest filing provides clarity on the equity structure and highlights the involvement of existing shareholders who intend to partially divest their stakes via the OFS method.

Advisors Involved in the IPO Process

Several investment banks are providing consultation services to Meesho for the IPO, including Kotak Mahindra Capital, Morgan Stanley, Citi, and Axis Capital. The Bengaluru-based company is anticipated to make its public debut by December or January.

Meesho’s Financial Performance Insights

On the financial front, Meesho has maintained its growth trajectory in FY25, with operating revenue increasing to approximately Rs 9,000 crore from Rs 7,615 crore in FY24. Despite achieving better operational efficiency, the platform recorded a net loss of Rs 108 crore for the fiscal year, which excludes one-time tax and redomiciling expenses associated with its relocation from the US back to India.

Growth in Net Merchandise Value (NMV)

Continuing this upward trend, Meesho’s Net Merchandise Value (NMV) surged by approximately 29% year-on-year, reaching Rs 29,988 crore in FY25. According to the source mentioned earlier, NMV growth accelerated further in Q1 FY26, climbing to 36% and totalling Rs 8,679 crore. NMV signifies the cumulative checkout value of successfully delivered orders, inclusive of taxes, serving as a fundamental metric for platform health that indicates customer adoption and repeat usage.

Recent Financial Statistics

As reported, Meesho experienced a loss before exceptional items amounting to Rs 148 crore in Q1 FY26, while the net loss for the same period reached Rs 289 crore. Queries directed to Meesho on Saturday evening did not elicit a response. The article will be updated if the company provides any feedback.