Meesho Prepares for $1 Billion IPO, Taps Morgan Stanley and Citi as Advisors

Homegrown e-commerce platform Meesho is gearing up for its highly anticipated public listing, aiming to raise approximately $1 billion through an initial public offering (IPO). The company has enlisted Morgan Stanley, Kotak Mahindra Capital, and Citi as its advisors, while discussions are underway to potentially bring JP Morgan on board. If the IPO proceeds as planned, Meesho will surpass its competitor Flipkart, which is still awaiting a decision from parent company Walmart regarding its IPO plans.

Valuation and Listing Timeline

According to industry reports, bankers have pitched a valuation of around $10 billion for Meesho's IPO. The company plans to file draft documents in the coming weeks and is expected to debut on stock exchanges between September and October, aligning with the Diwali festive season. This move is set to make Meesho one of the most valuable startups in India's booming e-commerce space.

Meesho's Recent Fundraising Efforts

Earlier this year, Meesho successfully raised approximately $250-$270 million from investors, including Tiger Global, Think Investments, and Mars Growth Capital. This funding round contributed to the company’s total fundraising of around $550 million. A large portion of these funds came from secondary transactions, reflecting strong investor confidence in Meesho's growth potential. The valuation during this funding round stood at approximately $3.9-$4 billion.

Reverse Merger Application with NCLT

Meesho has filed an application with the National Company Law Tribunal (NCLT) for a reverse merger of its Indian subsidiary, Fashnear Technologies, with its US-based parent entity, Meesho Inc. This strategic move is expected to streamline its corporate structure and enhance operational efficiencies ahead of its IPO.

Financial Performance and Growth Trajectory

Meesho has showcased robust financial growth in the financial year 2023-24 (FY24). The company's operating revenue surged by 33 percent to ₹7,615 crore, up from ₹5,735 crore in the previous year. Additionally, Meesho significantly reduced its adjusted losses by 97 percent, narrowing them to ₹53 crore from ₹1,569 crore in the previous fiscal year. This financial turnaround highlights Meesho's improved business model and operational efficiency.

Expanding User Base and Market Reach

At the close of 2024, Meesho reported a 35 percent year-on-year increase in orders, reaching approximately 175 million annual transacting users. Notably, around 50 percent of its user base hails from tier-4 and smaller towns, underlining its deep penetration into India’s rural and semi-urban markets. By focusing on affordability and accessibility, Meesho has successfully positioned itself as a preferred online shopping destination for millions of Indians.

Future Outlook

With a strong financial standing, a growing customer base, and strategic corporate restructuring, Meesho's upcoming IPO is expected to be a game-changer in India’s e-commerce landscape. The company’s decision to go public reflects its confidence in sustaining long-term growth and profitability while strengthening its market position.