Meesho, the Bengaluru-based social commerce platform has enlisted the investment bankers as it plans to launch its initial public offering (IPO). The company has already enlisted Morgan Stanley, Kotak Mahindra Capital and Citi as investment bankers and could add JP Morgan to the list of advisors on the road to IPO, a report by MoneyControl said. The report also mentions that the company aims to launch the IPO during September-October 2025 and is expected to file its draft red-herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) in the upcoming weeks.
The company is expecting to raise around $1 billion at a valuation of $10 billion according to the report. As per data by Tracxn, Meesho has so far raised a total of $1.36 billion over 12 rounds and the last funding round pegged its valuation at around $39 billion. The IPO plans put its valuation at nearly 2.5 times of what it is now. The company’s last funding round of around $250-$275 million saw participation from investors including Tiger Global, Think Investments and Mars Growth Capital.
However, the company needs to first move its headquarters to India from Delaware, U.S., before proceeding with the IPO plans. Meesho will likely have to pay around $300 million in taxes due to the reverse merger. Meesho had already filed an application with NCLT for reverse merge of its Indian subsidiary Fashnear Technologies Private Limited with its US-based company Meesho Inc.
Meesho had posted a revenue of Rs 7,615 crore in FY24 with losses of Rs 53 crore. In comparison, the revenue was Rs 5.735 crore in FY23 while the losses were Rs 1,569 crore. While the company’s revenue grew at 33% between FY23 to FY24, the losses contracted by 97%.
Notably, the company’s cash flow turned positive to Rs 232 crore in FY24 from a negative cash flow of Rs 2,303 crore in FY23. The company achieved this by reducing customer acquisition costs, optimizing supply chain and diversifying its revenue streams.
Meesho is currently the third biggest horizontal e-commerce players in India, specially in the social commerce and low-cost retail segments. The platform has carved its niche in low-cost retail segment and competes with Shopsy (Flipkart’s budget-focused platform). Meesho boasts of having over 14 crore annual transacting users with over 62 crore orders. Around 80% of the Meesho’s users come from Tier 2+ cities. In 2023, Meesho became the world’s fastest shopping app to garner over 50 crore downloads cumulatively on Apple App Store and Google Play Store.
While the IPO activity has been slow in February and March 2025, the months leading to the financial year’s end, several startups such as Ather Energy, PhysicsWallah and players in eCommerce space such as Flipkart and Zepto are already poised to go public in the upcoming months.
