Meesho Sets December Date for Highly Anticipated Public Debut
The e-commerce platform Meesho, backed by Japanese investment giant SoftBank, has officially announced the opening date for its initial public offering. According to documents filed with regulatory authorities, the IPO will commence on December 3, 2024, marking a significant milestone for the Indian startup ecosystem.
The public offering will feature a substantial fresh issue of shares worth Rs 4,250 crore, as confirmed by the red herring prospectus submitted on Thursday. The subscription window will remain open for three days, closing on December 5, while anchor investors will receive their share allocations a day earlier on December 2.
Investor Participation and Share Sale Details
Beyond the fresh issue, the IPO includes a significant offer-for-sale component where existing investors will divest part of their holdings. Early backers including Elevation, Peak XV, Venture Highway and Y Combinator will collectively offer 10.55 crore shares through the OFS route.
This move allows some of the company's earliest supporters to partially exit their investments while bringing new public market participants into Meesho's ownership structure. The complete pricing details, including the price band that will determine the company's final valuation, are scheduled for announcement on Friday.
Strategic Allocation of IPO Proceeds
Meesho has outlined clear plans for utilizing the capital raised through the fresh issue. The company stated that funds will be directed toward several strategic initiatives including significant investments in cloud infrastructure, marketing and brand-building campaigns, and potential acquisitions for inorganic growth.
Additional capital will support other strategic plans and general corporate purposes, providing the company with financial flexibility as it continues to scale operations in the competitive e-commerce landscape.
Platform Performance and Financial Metrics
Recent platform metrics demonstrate Meesho's substantial market traction. During fiscal year 2025, the company connected over 500,000 transacting sellers with 199 million annual transacting users, facilitating an impressive 1.8 billion placed orders through its platform.
The company's Net Merchandise Value, a key performance indicator representing the total value of successfully delivered orders including taxes, showed robust growth. NMV increased 29% year-on-year to Rs 29,988 crore in FY25, building on the 21% growth achieved in the previous fiscal year.
Financially, Meesho reported a net loss of Rs 3,942 crore for FY25, primarily driven by one-time exceptional items. These included expenses related to reverse flip tax and perquisite tax associated with the company's transition to a public corporate structure, rather than reflecting ongoing operational performance.
The IPO represents a watershed moment for India's startup landscape, showcasing the maturation of homegrown e-commerce platforms and their readiness for public market scrutiny. Market observers will closely watch investor response to Meesho's public offering as it sets the tone for future technology IPOs in the country.
