Meesho, the fast-growing Indian e-commerce company competing with Amazon and Walmart-owned Flipkart, has announced a $606 million IPO.
The listing includes small sell-downs from early backers but no share sales from major investors such as SoftBank and Prosus, highlighting strong confidence in India’s expanding online retail market.
The ten-year-old startup plans to price its shares at ₹105–111, raising about ₹42.50 billion in fresh capital and the rest through secondary sales.
This values Meesho at roughly ₹501 billion, or $5.60 billion, slightly above its last private valuation in 2021.
Meesho will become India’s first major horizontal e-commerce platform to go public, with Flipkart expected to follow next year and Amazon exploring a potential India spin-off for a future listing.
Early shareholders, including Elevation Capital, Peak XV Partners, and Y Combinator, are selling small portions of their stakes, while SoftBank, Prosus, and Fidelity are retaining all of their shares.
Founded in 2015, Meesho began as a social commerce platform on WhatsApp before evolving into a large value-focused marketplace. Its low-cost, commission-light model has resonated with India’s price-sensitive consumers and small merchants, placing competitive pressure on larger rivals.
The company earns primarily from logistics fees, ads, and services, with commissions applying only to its Meesho Mall channel.
Meesho reported ₹55.78 billion in revenue for the six months ending September 30, up from ₹43.11 billion a year earlier.
Net merchandise value rose 44% to ₹191.94 billion. Losses widened to ₹4.33 billion for the half-year, compared to ₹0.24 billion the year prior.
Over the last 12 months, Meesho has had 234.20 million transacting users and more than 706,000 annual transacting sellers. Its creator network includes over 50,000 active content creators.
The company states that the IPO will strengthen its brand, enhance talent acquisition, and foster deeper trust among consumers, sellers, and partners.
Public subscription opens on December 3, with the anchor book scheduled for release on December 2.
Most of the offer is reserved for institutional buyers, followed by non-institutional and retail investors.
Key Takeaways:
- Meesho launches a $606 million IPO, becoming India’s first primary e-commerce listing.
- SoftBank, Prosus, and Fidelity are not selling any shares, signaling strong conviction.
- Revenue rose 29% year-over-year, though losses also widened.
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