Meesho gears up for $1 bn IPO; enlists Morgan Stanley, Citi as advisors

Bankers have pitched a valuation of $10 billion for Meesho's IPO with plans to file draft papers in the coming weeks, seeks listing by Diwali

Homegrown e-commerce platform Meesho is preparing to go public later this year, 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 IPO advisers, and discussions are underway to potentially include JP Morgan in the syndicate, according to a report by Moneycontrol.

 

If Meesho proceeds with its public listing as planned, it will outpace its rival Flipkart, which has been considering an IPO but is awaiting a decision from its parent company, Walmart.

 

Bankers have reportedly pitched a valuation of $10 billion for Meesho's IPO, with plans to file draft documents in the coming weeks. The company is expected to debut on the stock exchanges likely between September and October, around Diwali.  ALSO READ | PhysicsWallah files draft red herring prospectus via confidential route

 

Meesho raises $550 million in funding

Earlier this year, Meesho raised approximately $250-$270 million in funding from investors such as Tiger Global, Think Investments, and Mars Growth Capital. This round brought the company’s total fundraising to about $550 million, with a significant portion comprising secondary transactions. The valuation from this round stood at approximately $3.9-4 billion.

 

Meesho has also 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.

 

Meesho reported a strong financial performance in the financial year 2023-24 (FY24). The company’s operating revenue grew by 33 per cent to  ₹7,615 crore from  ₹5,735 crore year-on-year. Additionally, its adjusted losses narrowed significantly by 97 per cent, to  ₹53 crore from  ₹1,569 crore.  ALSO READ | Fintech firm Pine Labs targeting Indian IPO in second half of 2025: CEO

 

At the end of 2024, the platform reported a 35 per cent year-on-year increase in orders, reaching approximately 175 million annual transacting users. Around 50 per cent of its user base came from tier-4 and smaller towns, highlighting its penetration into India's rural and semi-urban markets.