Meesho’s IPO marks one of the biggest new‑age tech listings of 2025, with the ecommerce major seeking to raise fresh capital, give partial exits to marquee investors, and capitalize on a sharp improvement in its financial profile.
Meesho IPO: Key Terms and Structure
- Issue structure:
- Price band: ₹105–₹111 per share; face value ₹1.
- Issue timeline:
- Implied valuation: At the upper band, Meesho is targeting a valuation of around ₹50,000 crore (~$5.6B).
- Share sale in OFS: Founders Vidit Aatrey and Sanjeev Barnwal will each sell up to 1.6 crore shares. Early backers including Elevation Capital, Peak XV Partners, Venture Highway, Prosus, and Y Combinator Continuity will also trim stakes.
Use of Proceeds (Fresh Issue)
According to the RHP, Meesho plans to deploy the net fresh issue primarily into its technology and growth engine via its subsidiary Meesho Technologies Pvt Ltd (MTPL):
| Purpose | Amount (₹ Cr) |
|---|---|
| Cloud infrastructure investment via MTPL | 1,390 |
| Salaries for existing & replacement ML/AI and tech teams (MTPL) | 480 |
| Marketing and brand initiatives for MTPL | 1,020 |
| Inorganic growth (acquisitions, strategic initiatives) & general corpus | Balance |
This clearly signals a push to deepen Meesho’s AI‑driven discovery, personalization, and logistics optimization while stepping up brand and category expansion.
Financial Performance: FY23–H1 FY26
Revenue & Profitability
Meesho has rapidly scaled topline while sharply cutting losses:
| Period | Operating Revenue (₹ Cr) | YoY Growth | Net Loss (₹ Cr) | YoY Change |
|---|---|---|---|---|
| FY23 | 5,734.5 | — | -1,672* | — |
| FY24 | 7,615.1 | +33% | n/a | — |
| FY25 | 9,389.9 | +23% | ~-108* | Big shrink |
| Q1 FY26 | 2,503.9 | — | n/a | — |
| H1 FY26 | 5,577.5 | +29.4% | -700.7 | -72% vs H1 FY25 |
*Loss before tax and exceptional items; Meesho’s loss before tax narrowed from ~₹1,672 crore in FY23 to ~₹108 crore in FY25, with free cash flow turning positive (~₹1,032 crore including interest) in FY25.
- H1 FY26 EBITDA: While revenue rose 29%, EBITDA loss widened on account of stepped‑up investments in technology, logistics, and marketing to consolidate growth.
- Tax demands: Meesho has disclosed Income Tax demand notices of ₹572 crore for AY 2022–23; it has challenged these in the Karnataka High Court, which has granted an interim stay.
Strategic Moves Towards IPO
Over the last 18–24 months Meesho has:
- Pivoted from pure reseller‑led social commerce to a low‑price horizontal marketplace, focusing on fashion, beauty, home, and long‑tail categories.
- Significantly reduced cash burn, cut deep discounting, and pushed for sustainable unit economics, leading to near‑breakeven levels in FY25 on a pre‑exceptional basis.
- Invested heavily in AI‑driven cataloging, seller tools, and logistics routing, which is where a big chunk of IPO proceeds will be directed.
These moves have set up Meesho as a credible, large‑scale ecommerce player beyond Tier‑1 India, often competing on price with Flipkart and Amazon for value‑conscious shoppers.
Recent Startup IPOs in 2025: How Are They Doing?
Below is a snapshot of some notable Indian tech/startup IPOs of 2025 and their current trading scenario:
| Company | Sector | Listing Date (2025) | Issue Price (₹) | Listing Price (₹) | Listing Gain | Latest Price* (₹) | Trend vs Issue |
|---|---|---|---|---|---|---|---|
| Urban Company | Home services | 16 Sep | 103 | 162.5 | +57.5% | ~175–185 | Strongly above |
| PhysicsWallah | Edtech | 18 Nov | 109 | 143.1 (NSE) | +31.3% | ~150–160 | Above, stable |
| Pine Labs | Fintech | mid‑Oct | n/a | modest premium | Low double‑digit | Mixed | |
| Groww (Eternal) | Broking/Fintech | 12 Nov | 100 | 112–115 | +12–15% | ~165–180 | Strongly above |
| Lenskart | D2C eyewear | early Oct | n/a | slight premium | ~10–12% | Range‑bound | |
| Capillary Tech | SaaS/Martech | 21 Nov | 577 | 606.5 | +5.1% | ~676 | Solid uptick |
*Latest prices approximate, based on most recent trading data and performance trackers.
Overall, 2025 has been a much better year for new‑age listings than the 2021–22 cycle: investors have rewarded profitable or near‑profitable, cash‑generative models (Urban Company, PhysicsWallah, Groww), while being more cautious on companies with still‑heavy losses.
How Meesho Fits into This IPO Wave
- Scale & Growth: With H1 FY26 revenue of ₹5,577.5 crore, Meesho is one of the fastest‑growing ecommerce players by topline.
- Profitability Trajectory: The 72% reduction in H1 losses and near‑breakeven FY25 P&L put it in a better position than many earlier‑stage tech issuers.
- Risks: Tax litigation (₹572 crore), intense ecommerce competition, and continued need for marketing/infra investment will be key points watchful investors focus on.
If Meesho delivers on its promised path to sustainable profitability while leveraging IPO proceeds for tech, brand, and selective M&A, it is well‑placed to join the cohort of Indian listed startups that are re‑rating upward on Dalal Street.
Read this: Meesho to Go Public by December, Files Updated DRHP to Raise Rs 4,250 Cr via Fresh Issue
