Meesho IPO: Companies in India’s e-commerce market are growing rapidly. Many companies are listed in the market and now Meesho is also preparing to enter the stock market. Its IPO is expected to come in the month of December. Meesho has planned to raise around Rs 4,250 crore from the IPO. The company had filed draft papers confidentially with SEBI in July. After that, the updated draft red herring prospectus was also submitted on October 18. Now another updated version will be filed soon.
The company has finalized the valuation after road show and talks with investors. If we look at the details of IPO, it also has fresh issue and offer for sale (OFS). Fresh issue will issue new shares worth up to Rs 4,250 crore. At the same time, 17,56,96,602 shares will be sold by the existing shareholders. This includes the company’s early investors like Elevation, Peak XV, Venture Highway and Y Combinator. According to media reports, these investors will sell 5 to 7 percent of their holding. The book running lead managers of this IPO are Kotak Investment Banking, JP Morgan, Axis Capital, Citi and Morgan Stanley.
company valuation
Talking about the valuation of the company, it has not been finalized yet, but it is estimated that it could be around 5 billion dollars. Meesho had completed a funding round last year in 2024 at a valuation of $3.9 billion. It may increase after IPO. India’s e-commerce market is growing rapidly. Meesho has created its own place among big players like Amazon and Flipkart. Its reach is especially strong in Tier-2 and Tier-3 cities. The company’s model is based on social media, where sales are done through platforms like WhatsApp, Facebook.
Where will the company use the funds raised from IPO?
The company has planned to use the money received from IPO. Most of the funds will be invested in Meesho Technologies Private Limited (MTPL). This is a subsidiary, which will work on tech and cloud infrastructure. AI, machine learning and technology teams will be strengthened with the money. This will be spent on salaries of existing and new recruits. Apart from this, there will also be investment on marketing and brand building. The aim of the company is to upgrade the technology so that sellers get better service.
When was the company started?
Meesho was started in 2015. This is a social commerce platform, where small shopkeepers and women can sell products sitting at home. The company’s focus is on lower income groups, who live in small towns and villages. The specialty of Meesho is that it connects sellers for free and does not charge any commission. Today, Meesho has more than 1.5 crore sellers and crores of orders are processed every month. The company has so far raised $1.4 billion from private funding. Now it will enter the public market through IPO.
This IPO is a big opportunity for Indian investors. By investing in a company like Meesho, even small investors can become stakeholders in the future of e-commerce. The business model of the company is strong and Meesho’s revenue in the financial year 2024 was Rs 7,600 crore, which doubled from the previous year. The company is moving towards becoming profitable. When the IPO comes in December, subscription will be open for retail investors. Meesho founders Vidhit Jain and Sanjay Sachdev made the company a platform to support small businesses. After this IPO, the company’s expansion will accelerate further. There are plans like entry into new markets, increasing the product range. Investors are excited and people are waiting for this IPO.
