If everything goes smoothly, the IPO is expected to launch around September or October 2025
Meesho, the fast-growing e-commerce company from Bengaluru, is preparing to make its debut on the stock market. The company has taken a big step by filing a confidential draft with SEBI (Securities and Exchange Board of India) to launch its Initial Public Offering (IPO). The plan is to raise ₹4,250 crore through this offering, and possibly even more through additional share sales by existing investors. If everything goes smoothly, the IPO is expected to launch around September or October 2025.
This move marks a significant turning point for Meesho, as it transitions from a high-growth startup to a public company. The filing suggests that the company is confident in its business model and ready to scale further.
Business Restructuring and Legal Preparations
Before filing for the IPO, Meesho made several important changes to align with public listing rules. First, it changed its status from a private limited company to a public limited company. It also brought its U.S.-based Delaware unit under the Indian operations, making the entire structure more streamlined and easier to manage under Indian laws.
The National Company Law Tribunal (NCLT) approved these changes, and co-founder Vidit Aatrey was appointed as both Chairman and Managing Director. These legal and structural adjustments are standard for any company preparing to go public, and they ensure that Meesho follows all regulatory requirements.
Why a Confidential Filing?
Meesho chose to file its draft documents confidentially. This means that the details of its financials, IPO pricing, and shareholding structure are not yet available to the public. A confidential filing allows the company to fine-tune its offer, make strategic decisions behind the scenes, and avoid revealing sensitive information too early.
Several other Indian startups have used this method in recent times, including boAt, Groww, Pine Labs, and Wakefit. It is becoming a preferred route for companies that want more flexibility in preparing for their IPO.
Raising Funds and Exit for Early Investors
The IPO will be a mix of two parts: a fresh issue and an offer for sale. The fresh issue will raise ₹4,250 crore, which Meesho will use to expand its operations, improve logistics, and invest in technology. The offer for sale (OFS) will allow early investors to sell some of their shares, which could take the total offering size up to ₹8,500 crore.
Several well-known investors like Prosus, SoftBank, WestBridge, Elevation Capital, and Peak XV are expected to participate in the OFS. This gives them a chance to cash in on their early bets while remaining invested if they choose to.
Strong Financial Performance
Meesho has shown impressive growth over the past year. In the financial year 2023–24, the company recorded ₹7,615 crore in revenue, a 33% increase compared to the previous year. More importantly, it managed to cut its losses drastically. The net loss came down from ₹1,569 crore in the previous year to just ₹53 crore in FY24.
For FY25, the company’s Gross Merchandise Value (GMV)—the total value of goods sold—has reached $6.2 billion, making Meesho the third-largest e-commerce platform in India by this measure. These numbers show that Meesho is not only growing quickly but also moving closer to profitability, which is a big plus for potential investors.
Business Model Focused on Bharat
Meesho has built a unique position in the Indian e-commerce space by targeting value-conscious shoppers in smaller cities and towns. It allows sellers and resellers to use platforms like WhatsApp and Facebook to sell products, helping them earn without holding inventory.
With over 120 million monthly active users, Meesho has become a favorite in Tier II and Tier III cities. This focus on affordability and accessibility has helped it grow faster than some traditional e-commerce giants.
To improve order delivery, Meesho has also developed its own logistics arm, Valmo. This in-house delivery network now handles more than half of Meesho’s daily shipments, allowing the company to cut costs and offer faster services.
Top Investment Banks Involved
Several leading investment banks are working with Meesho to manage the IPO process. These include Citigroup, Morgan Stanley, Kotak Mahindra Capital, Axis Capital, and JP Morgan. They will help with pricing, marketing, and finalizing the offering.
While Meesho’s valuation is not yet confirmed, estimates suggest it could be valued between $7 billion and $10 billion, depending on market conditions and investor interest. These numbers will become clearer once the full draft red herring prospectus is made public.
A Hot IPO Market in 2025
The timing of Meesho’s IPO appears favorable. The Indian stock market has seen strong IPO activity this year. By June 2025, Indian companies had already raised close to $6 billion through public offerings. There are over 140 more IPOs planned for the rest of the year, showing strong investor appetite.
Meesho’s IPO is expected to be one of the largest tech listings this year and could set the tone for other startups considering a market debut.
Potential Challenges and Risks
Despite strong performance, Meesho faces several challenges. The competition in the e-commerce space is intense, with global giants like Amazon and Flipkart holding large market shares. These companies have deeper pockets and wider reach.
Another challenge is profitability. While Meesho has cut its losses significantly, it still has a way to go before it becomes fully profitable. Logistics, marketing, and tech development will continue to demand large investments.
Also, as a public company, Meesho will face greater scrutiny and pressure from shareholders. Execution of plans and delivery of consistent financial results will become even more critical.
Next Steps for Meesho
The next phase involves SEBI reviewing Meesho’s confidential draft. Once approved, the company will file its final draft with complete details. This will be followed by investor roadshows, where company leaders meet large investors to build interest and explain the company’s growth story.
After that, the IPO price band will be announced, and bidding will open for both institutional and retail investors. The actual listing on the stock exchange is expected to take place between September and October 2025.
A Defining Moment for India’s Startup Story
Meesho’s move to go public is a major event in India’s startup ecosystem. The company has built a strong business model focused on underserved markets and is now preparing for the next big leap. With a healthy mix of growth, cost control, and a massive customer base, Meesho seems ready to take on the responsibilities of a public company.
Investors, industry watchers, and other startups will be paying close attention. If successful, Meesho’s IPO could become a benchmark for new-age tech listings in India and open the door for more startups to follow suit.
