Meesho Files Updated Draft Papers with SEBI for INR 4,250 Cr IPO Elevation Capital and Peak XV will lead the secondary sale, offering 5.54 crore and 3 crore shares respectively, while investors like Prosus and SoftBank, which hold 12.34% and 9.31% stakes, will retain their shares.
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Ecommerce platform Meesho has filed its Updated Draft Red Herring Prospectus (UDRHP) with the Securities and Exchange Board of India (SEBI), marking a major step toward its public market debut.
The proposed initial public offering (IPO) includes a fresh issue of equity shares worth up to INR 4,250 crore and an offer for sale (OFS) of up to 17.56 crore equity shares by existing shareholders.
The selling shareholders in the OFS include major investors such as Elevation Capital V Limited, Peak XV Partners Investments V, Venture Highway, Y Combinator Continuity Holdings, Golden Summit Limited, and individual shareholders including Vidit Aatrey and Sanjeev Kumar, Meesho's co-founders.
According to the filing, Aatrey and Kumar will together sell 2.35 crore shares, representing only a small portion of their holdings.
Elevation Capital and Peak XV will lead the secondary sale, offering 5.54 crore and 3 crore shares respectively, while investors like Prosus and SoftBank, which hold 12.34% and 9.31% stakes, will retain their shares.
The company may also consider a pre-IPO placement of INR 850 crore, which would reduce the size of the fresh issue.
The company intends to use the net proceeds to strengthen its cloud infrastructure, fund salaries for its AI and ML teams, support marketing and brand initiatives, and pursue inorganic growth through acquisitions and strategic partnerships.
In FY25, Meesho emerged as India's largest ecommerce platform by annual transacting users and placed orders, connecting over 500,000 sellers with nearly 199 million users and facilitating 1.8 billion orders.
The company reported a significant turnaround in cash flow, generating INR 1,032 crore in free cash flow, compared to a loss of INR 2,336 crore the previous year. Its loss before tax narrowed to INR 108 crore in FY25 from INR 1,672 crore in FY23.
Despite a net loss of INR 3,942 crore in FY25, mainly due to one-time restructuring expenses, Meesho continues to invest in growth. In Q1 FY26, its net merchandise value (NMV) rose by 36% year-on-year and placed orders grew by 50%, reflecting continued user and seller engagement.
The IPO will be managed by Kotak Mahindra Capital, J.P. Morgan India, Morgan Stanley India, Axis Capital, and Citigroup Global Markets India.
According to reports, Meesho is targeting a domestic listing in December 2025. The company, which competes with Flipkart and Amazon, joins other startups such as Groww, Razorpay, Wakefit.co, and Lenskart that are preparing for public listings this year.
