Meesho Refiles DRHP with SEBI, Aims to Raise ₹4,250 Crore Through Fresh Equity
Bengaluru-based e-commerce platform Meesho has refiled its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI), signaling its continued push towards an initial public offering (IPO). The company is eyeing a December 2025 listing on the Indian bourses.
Through the IPO, Meesho aims to raise ₹4,250 crore through the issuance of fresh equity shares. The IPO will also include an offer for sale (OFS) of up to 175,696,602 equity shares by existing shareholders. This move will make Meesho the first pure-play horizontal e-commerce marketplace to list in India.
Several of Meesho's early investors are expected to partially offload their stakes through the OFS. These include Elevation Capital, Peak XV Partners, Venture Highway, and Y Combinator. Even the company's co-founders, Vidit Aatrey and Sanjeev Barnwal, who are tagged as promoters, plan to partially reduce their holdings.
Meesho intends to utilize the net proceeds from the fresh issue for several key objectives. These include investments in scaling server infrastructure, strengthening its corporate capabilities, and supporting overall growth. A portion of the funds will also be directed towards funding AI and technology development, marketing and brand initiatives, and potential inorganic growth opportunities through acquisitions.
Meesho's IPO plans follow a period of significant financial and operational progress. In fiscal year 2025, the company consolidated its position as one of India's largest e-commerce platforms based on annual transacting users and placed orders. The platform boasts a network of over 5 lakh sellers and connects them with approximately 199 million transacting users, facilitating 1.8 billion placed orders during the year. The company also reported it had become India's largest free cash flow generator among scaled e-commerce players, with a swing from a negative ₹2,336 crore to a positive ₹1,032 crore in FY25, including interest income. For the fiscal year ending March 2025, Meesho reported ₹9,390 crore in operating revenue, 23% higher than FY24.
Meesho's journey to its IPO has involved strategic shifts, including a transition from a social commerce platform to a pure-play e-commerce model. The company has focused on capturing the non-metro markets. In preparation for the IPO, Meesho has also undertaken significant internal restructuring, including recasting its board and transitioning into a public entity. The company has also shifted its domicile from the United States to India.
The listing is expected to add to a series of substantial IPOs by Indian new-age companies this year. The merchant bankers for the IPO are Kotak Mahindra Capital, JP Morgan India, Morgan Stanley India, Axis Capital, and Citigroup Global Markets India.
