E-commerce unicorn Meesho has taken a major step toward its long-awaited market debut, filing its updated Draft Red Herring Prospectus (UDRHP) with SEBI. The Bengaluru-based company plans to raise ₹4,250 crore through a fresh issue and an additional sum via an offer for sale (OFS) by early investors such as Elevation Capital, Peak XV Partners, Y Combinator, and Venture Highway. Co-founders Vidit Aatrey and Sanjeev Barnwal will also dilute part of their holdings as Meesho targets a December 2025 listing, making it one of India’s largest consumer tech IPOs of the year.
A Long-Awaited Public Debut
The IPO filing follows its earlier confidential submission in July 2025, during which the company sought SEBI’s feedback before making financial details public. This move formalizes its objective to become India’s first pure-play online marketplace to list on domestic exchanges. The company’s board and shareholders cleared the IPO proposal in mid-2025, reaffirming its focus on building sustainable scale after several years of rapid growth and profitability improvements.
Read this: Meesho Converts to Public Company Ahead of Its $300-500 Million IPO.
Financial Performance and Growth Momentum
Meesho’s financial performance has shown remarkable recovery over the past two fiscal years. The company reported ₹9,390 crore in operating revenue for FY25, registering a 25% year-on-year rise from ₹7,615 crore in FY24. However, its bottom line reflected a net loss of ₹3,914 crore, much of which was a one-time expense of ₹3,883 crore incurred during its corporate restructuring and relocation to India ahead of the IPO. Excluding this adjustment, Meesho’s core operating loss narrowed to ₹108 crore, signaling its path toward near-term profitability.
The platform handled over 1.8 billion orders in FY25, growing its Net Merchandise Value (NMV) to nearly ₹30,000 crore, while active transacting users jumped 28% year-on-year, strengthening Meesho’s leadership in value commerce.
Use of IPO Proceeds
Proceeds from the public issue will drive Meesho’s next growth cycle. Around ₹1,390 crore will be dedicated to technology and cloud infrastructure, while another ₹1,020 crore will fund marketing and brand expansion. Approximately ₹480 crore is earmarked for developing AI and automation capabilities, enhancing Meesho’s internal AI-driven commerce tools under its in-house “AI Labs.” The rest will be allocated for inorganic growth opportunities, including strategic acquisitions and working capital.
A Decade of Funding and Expansion
Since its founding in 2015, Meesho has raised over $1 billion from leading global investors. It became a unicorn in 2021 after securing $300 million from SoftBank at a $2.1 billion valuation, followed by a $570 million Series F round led by Fidelity and B Capital at a $4.9 billion valuation. Pre-IPO funding rounds in 2024 and early 2025, totaling $275 million, were designed to strengthen its cash reserves and improve its financial readiness for public markets.
Reinventing E-Commerce for Bharat
Meesho has built a distinct identity as India’s most inclusive e-commerce marketplace, catering specifically to tier-2 and tier-3 consumers with its zero-commission model and low average order pricing. The platform now boasts over 187 million annual transacting users and supports 1.1 lakh registered sellers. With its logistics arm Valmo handling over half of Meesho’s total deliveries, the company has achieved strong control over fulfillment costs and delivery efficiency.
IPO Outlook and Market Significance
Analysts view Meesho’s IPO as a pivotal moment for India’s startup ecosystem, coming amid a resurgence in global investor appetite for Indian consumer-tech companies. With peers like Lenskart and Groww also preparing for listings, Meesho’s public debut could redefine investor confidence in Indian e-commerce models focusing on affordability and tier-2 penetration. Post-listing, the company is expected to be valued between $7–8 billion, positioning it as one of India’s top five internet companies by market capitalization.
