E-commerce firm Meesho files confidentially for Rs 4,250 crore India IPO

Business Standard

2 days ago

E-commerce platform Meesho has confidentially filed for a Rs 4,250 crore IPO with market regulator the Securities and Exchange Board of India (SEBI), joining a wave of startups rushing to go public this year, according to people familiar with the matter. The Bengaluru-based company is targeting a market debut in September or October.
The move comes as Meesho has emerged as India's third-largest e-commerce platform, reaching a gross merchandise value run rate of $6.2 billion for FY 2025. The company reported a 33 per cent increase in revenue to Rs 7,615 crore for fiscal 2024, while narrowing its net loss to Rs 53 crore from Rs 1,569 crore the previous year.
Meesho's rapid ascent has disrupted the established duopoly of Flipkart and Amazon. Over the past four years, the company has increased its market share from low single digits to 8.9 per cent as of 2024. In contrast, Flipkart's share slipped from 33.7 per cent in 2020 to 32.1 per cent, while Amazon declined from 30.5 per cent to 28.3 per cent over the same period, according to a CLSA report.
The IPO filing positions Meesho ahead of many other startups in India's public market rush. Fintech firm Pine Labs filed its draft prospectus with the market regulator last week, while furniture retailer Wakefit and cloud kitchen operator Curefoods submitted pre-IPO documents recently, signalling renewed momentum among consumer-facing startups.
The company received shareholder approval last week to proceed with its initial public offering and to designate co-founder and chief executive Vidit Aatrey as chairman and managing director, according to sources. Till March 2024, Meesho was valued at about $3.9 billion, according to data platform Tracxn.
A recent CLSA report projects the company will grow at a 26 per cent compound annual growth rate through FY 2031, as Meesho's gains come at the expense of incumbent players.
Meesho did not respond to requests for comment on the company's IPO plans.
The company, which counts Fidelity Investments, SoftBank Group, Prosus, and Peak XV Partners among its backers, joins other startups using the confidential filing route. A confidential pre-IPO filing allows companies to submit offering documents without immediate public disclosure, giving them time to address regulatory feedback while keeping financial details shielded from competitors.
Online brokerage Groww, education platform PhysicsWallah, logistics firm Shadowfax Technologies, and industrial steam solutions provider Steamhouse India have recently filed for IPOs through the confidential route. Shadowfax Technologies, backed by Flipkart, is expected to raise between Rs 2,000 crore and Rs 2,500 crore, potentially valuing the company at around Rs 8,500 crore. Surat-based Steamhouse India is estimated to seek between Rs 500 crore and Rs 700 crore.
The IPO filing follows Meesho's completion of a crucial corporate restructuring. In June, the National Company Law Tribunal (NCLT) approved Meesho's plan to relocate its headquarters from Delaware to India. The company is reportedly expected to pay approximately $288 million in taxes related to the so-called reverse flip.
"This filing is part of our ongoing transition to re-domicile in India. With the majority of our operations, including customers, sellers, creators and Valmo partners already based here, this step aligns our corporate structure with our day-to-day business footprint," a Meesho spokesperson had said at the time.
India's e-commerce market is currently dominated by four players: Flipkart, Amazon, Meesho, and Myntra, with Meesho's rapid market share gains positioning it as a formidable challenger to the established leaders.