New Delhi. E-commerce platform Meesho is in the news in the market even before its IPO. Its shares are trading at a premium of up to 38 percent in the gray market, which clearly shows that investors are excited about the listing gains. All investors, from small to big, are constantly taking updates regarding this issue, which will open in December, because Meesho has become a great example of a fast-growing digital business model in the last few years.
The public issue of the company will be open for subscription from December 3 to December 5. The company has fixed the price band at Rs 105 111 and is preparing to raise a total of Rs 5,421 crore. At the upper end, its valuation comes to Rs 50,096 crore, which places it firmly among the new age tech companies.
Investors’ mood is increasing in promoters’ confidence
Meesho has significantly reduced the size of its Offer For Sale i.e. OFS, which market experts are seeing as the strong intentions of the promoters and confidence in the future of the company. According to analysts, when existing investors sell their shares short, it sends a positive message to new investors about the company’s long-term strategy. The company will use the new funds in cloud infrastructure, marketing, brand building and inorganic growth.
Big bet on tech, help in reducing expenses
Meesho presents itself as a tech first company and its entire growth machinery also runs on this philosophy. The company has included GenAI in its engineering workflow, due to which the process from code generation to development is happening much faster. Less manual intervention and the mobile app being designed according to the user behavior of India is considered its biggest strength. This is the reason that even on such a large scale, its operating expenses remain under control.
Model unique, no one to compete directly
Market experts believe that there is no listed company in India that can give direct competition to Meesho. Low average order value, large user base, asset light delivery and NMV based economics set it apart from platforms like Zomato, Nykaa or Mamaearth. Research head Nirav Karkera says that the scale of Meesho has become so big that it is difficult to compare it with any one company, hence the comparison going on in the market is mostly sentiment based.
Loss reduced, revenue increased, business on track
Even looking at the financial numbers, the condition of the company has improved a lot in the last two years. The company saw a net loss of Rs 3,942 crore in FY25 but this was mostly related to exceptional expenses incurred during shifting to the public structure. In the first half of FY26, the company’s loss came down to just Rs 700.72 crore whereas in the same period last year it was Rs 2,513 crore. Revenue also increased from Rs 4,311 crore to Rs 5,577 crore, which indicates a strong recovery.
Easy way for sellers and buyers with zero commission model
Meesho has come into limelight because of its zero commission model. Company founder and CEO Vidit Athreya says that Meesho aims to provide low prices every day and for this, tech-based processes play a big role. Small sellers benefit from this model because their costs are lower and they are able to list products at cheaper prices. This is the reason why all types of products are available on Meesho, from unbranded items to big labels and the platform is rapidly attracting new users.
