Meesho’s IPO: Transformative Steps in E-Commerce

E-commerce platform Meesho is gearing up for a significant Initial Public Offering (IPO) following its recent transition from the United States back to India, a move that reportedly incurred costs of $288 million. The anticipated $1 billion IPO will mark a pivotal moment for its investors, founders, and other stakeholders. Attention is now focused on who will be the primary beneficiaries upon the company listing on public markets.

Ownership Insights for Meesho

While specifics of Meesho’s shareholding structure were initially confidential, Startup Superb has revealed comprehensive ownership details through an analysis of regulatory filings in India. The documents indicate that Elevation Capital possesses the largest share at 14.49%, trailed by Peak XV Partners at 13.64% and Prosus at 13.14%. SoftBank controls 9.91%, while co-founders Vidit Aatrey and Sanjeev Kumar hold 9.33% and 7.10%, respectively.

Key Stakeholders and Valuations

Other notable stakeholders include Fidelity Investments with 6.38%, WestBridge Capital at 4.17%, Y Combinator with 2.64%, Astrend India Investment Limited at 2.43%, and Venture Highway at 1.95%. The remaining 14.81% is distributed among various individuals and additional investors. Based on the most recent valuation of $3.9 billion, the co-founders’ stakes in the company are valued at $640 million, excluding their ESOPs. Elevation Capital holds shares valued at $565 million, while Peak XV controls an estimated $532 million in shares.

Meesho’s Valuation Goals

Meesho is aiming for a target valuation of $10 billion during its IPO, a significant growth from its current standing.

Board Composition for the Indian Entity

According to sources from Startup Superb, co-founder and CEO Aatrey will assume the role of Chairperson and continue as Managing Director. Co-founder Kumar will serve as whole-time Director and Chief Technology Officer. The board will also feature seasoned professionals such as Rohit Bhagat, Surojit Chatterjee, Hari Shanker Bhartia, and Kimsuka Narasimhan, who will serve as Independent Directors, bringing valuable expertise in finance, corporate governance, and strategic leadership.

Changes in the Board of Directors

Among the non-executive, non-independent directors are Mohit Bhatnagar (Peak XV) and Mukul Arora (Elevation Capital). Reports from Moneycontrol suggest that Sarthak Misra from SoftBank and Ashutosh Sharma from Prosus will be stepping down from their board positions.

Media sources indicate that Meesho may submit its Draft Red Herring Prospectus (DRHP) within the next two to three weeks. This will be a noteworthy event, as it will mark the first venture-funded horizontal e-commerce platform to be listed on the stock exchange. Major competitor Flipkart is also working on its reverse flip, preparing for a potential public listing.