Indian e-commerce upstart Meesho, has confidentially filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) as it prepares to launch its initial public offering (IPO). Through this IPO, the company plans to raise around ₹4,250 crore (~ $500 million) in fresh equity capital, reports Moneycontrol.
Notably, confidential filing is becoming a growing trend in India’s startup space. This approach allows startups to evaluate investor interest while keeping their business details private until they are ready to go public. Since SEBI introduced this route in 2022, several well-known companies (like Swiggy, Groww, Pine Labs, Shadowfax, and Ola Electric) have opted for it to quietly explore public listing.
The IPO will include both a fresh issue and an Offer for Sale (OFS), allowing some early investors to partially exit. Meesho’s major backers include SoftBank, Prosus Ventures, Peak XV Partners, Elevation Capital, WestBridge Capital, and Tiger Global. While the fresh issue will raise ₹4,250 crore for the company’s expansion and operational needs, the OFS component will provide liquidity to existing stakeholders. The final size of the IPO is expected to be larger once the OFS portion is added.
According to the report, the e-commerce firm has appointed a group of leading investment banks to manage the IPO process. These include Morgan Stanley, Kotak Mahindra Capital, JP Morgan, Citi, and Axis Capital. The banks will support Meesho through the regulatory process, investor roadshows, pricing, and eventual listing.
The public debut is tentatively planned for between September and October 2025, subject to market conditions and regulatory approvals. Meanwhile, ahead of its IPO, Meesho shifted its legal base from Delaware to Bengaluru, restructured as a public limited company, and issued bonus shares to streamline its capital structure. Co-founder and CEO Vidit Aatrey was also appointed as Managing Director and Chairman. Last month, the company received approval from the NCLT to execute a reverse-flip, demerging its Indian business from its US parent and redomiciling fully in India.
On the financial side, the company reported a 33% year-on-year growth in operating revenue for FY24, reaching ₹7,615 crore (up from ₹5,735 crore in FY23). The company also made significant progress in reducing its net losses, from over ₹1,600 crore in the previous year to between ₹53 crore and ₹305 crore (depending on the accounting standard applied). It also achieved positive operating cash flow.
However, despite all its efforts, the company is under increasing regulatory scrutiny, grappling with controversies tied to security lapses, tax compliance issues, ethical concerns, counterfeit goods, and a dip in customer trust. These concerns become significant as the company is primarily known for its focus on small sellers and value-conscious customers.
