Mumbai: E-commerce major Meesho Limited has filed its Updated Draft Red Herring Prospectus (UDRHP-I) with the Securities and Exchange Board of India (SEBI) for its proposed initial public offering (Meesho IPO).
The Meesho IPO will include a fresh issue of equity shares worth ₹4,250 crore and an offer for sale (OFS) of up to 17,56,96,602 equity shares by existing shareholders.
View the full UDRHP here.
Meesho IPO Structure and Key Shareholders
The offer for sale will involve equity dilution by investors including Elevation Capital V Limited, Peak XV Partners Investments V, Venture Highway SPVs LLC, Y Combinator Continuity Holdings I LLC, Golden Summit Limited, and VH Capital entities, along with founders Vidit Aatrey, Sanjeev Kumar, and individual shareholder Man Hay Tam.
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Proceeds from the Meesho IPO will be directed toward cloud infrastructure investments, AI and machine learning team expansion, marketing initiatives, inorganic growth via acquisitions, and general corporate purposes.
Meesho’s Market Leadership and FY25 Growth Metrics
In FY25, Meesho established itself as India’s largest e-commerce platform by both Annual Transacting Users (ATUs) and Placed Orders, linking more than 500,000 sellers to nearly 199 million users and enabling around 1.8 billion transactions during the year.
ATUs grew 28% year-on-year to reach approximately 213 million by June 2025, while order frequency improved from 7.5x in FY23 to 9.4x in FY25, underscoring deepening consumer engagement and trust.
Total orders surged from 1 billion in FY23 to 1.8 billion in FY25, recording 562 million orders in Q1 FY26, a 50% year-on-year increase. Meesho’s strong growth was broad-based, with orders from India’s top eight cities rising 46%, outpacing the platform’s overall growth rate of 37%.
Robust Financial Turnaround Ahead of Meesho IPO
Building on its operational scale, Meesho’s Net Merchandise Value (NMV) rose 29% year-on-year to ₹29,988 crore in FY25, after 21% growth in FY24. The momentum continued in Q1 FY26 with 36% NMV growth, reaching ₹8,679 crore.
Notably, Meesho turned cash flow positive in FY25, becoming the largest free cash flow generator among scaled Indian e-commerce companies. Its free cash flow improved from negative ₹2,336 crore to positive ₹1,032 crore (with interest income).
Loss before tax and exceptional items narrowed sharply from ₹1,672 crore in FY23 to ₹108 crore in FY25, despite continued investments in AI, technology, and user acquisition.
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However, the company reported a net loss of ₹3,942 crore in FY25, attributed primarily to one-time restructuring and tax-related costs tied to its transition to a public entity.
Outlook and Lead Managers for the Meesho IPO
In Q1 FY26, Meesho maintained its growth trajectory, with NMV up 36% YoY and Placed Orders increasing 50%. The company continues to invest in infrastructure and technology to support scaling operations, reinforcing its position as a leader in democratizing internet commerce across India.
The Book Running Lead Managers (BRLMs) for the Meesho IPO are Kotak Mahindra Capital Company Limited, J.P. Morgan India Private Limited, Morgan Stanley India Company Private Limited, Axis Capital Limited, and Citigroup Global Markets India Private Limited.
