Meesho, a cost-effective e-commerce platform, has taken a significant step towards going public by filing its draft red herring prospectus (DRHP) confidentially with the Securities and Exchange Board of India (SEBI). The company aims to raise Rs 4,250 crore in primary capital through this initial public offering (IPO), as suggested by media reports citing sources.
The move places Meesho alongside other emerging companies such as Pine Labs, Wakefit, and Curefoods, who have also recently initiated steps to enter the public markets. Collectively, these firms are set to raise approximately Rs 6,000 crore in primary capital, according to recent media reports. This does not include funds raised through the offer-for-sale (OFS) component.
Meesho’s IPO is anticipated around September-October, with expectations of raising up to Rs 4,250 crore through a combination of primary capital and secondary share sales. In preparation, the Bengaluru-based company has restructured its board, transitioned to a public entity, and completed its return to India, as suggested by media reports.
Opting for the confidential route allows Meesho to safeguard sensitive information from competitors like Flipkart and Amazon and provides flexibility in adjusting IPO plans based on market conditions. The IPO structure includes a fresh equity issue of up to Rs 4,250 crore and an OFS by existing shareholders.
Prominent investors back Meesho, including Meta, Peak XV Partners, Elevation Capital, Prosus, and SoftBank. Financially, the company’s revenue increased substantially from Rs 3,240 crore in FY22 to Rs 7,615 crore in FY24, while net losses diminished from Rs 3,248 crore in FY22 to Rs 305 crore in FY24. The funds raised will support expansion in last-mile logistics, backend system upgrades, and bolstering rural and semi-urban seller networks.
Co-founder Vidit Aatrey, now serving as chairman, managing director, and CEO, has been pivotal in Meesho’s preparations for the IPO. This development marks a significant phase in Meesho’s growth trajectory as it aims to solidify its position in the competitive e-commerce landscape.
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