Meesho files updated IPO papers, aims to raise up to $800 million

E-commerce firm targets December IPO as filing details equity structure, investor stake sales via offer for sale.

E-commerce firm Meesho has filed an updated draft red herring prospectus with the Securities and Exchange Board of India (SEBI), as the company prepares for a December public listing, according to sources.

 

The latest filing outlines plans to raise between $700 million and $800 million, including a primary share sale of $500 million. The revised prospectus offers greater transparency around the company’s equity structure and details the participation of existing shareholders who intend to sell part of their stakes through an offer for sale.

 

Some of them include Elevation Capital, Peak XV Partners and Venture Highway, according to sources. Meesho’s co-founders, Vidit Aatrey and Sanjeev Barnwal, listed as promoters in the filing—also plan to partially reduce their holdings. 

 

The updated submission follows a confidential filing made in July, which had already earmarked $500 million for the primary issue.

 

Elevation Capital owns 14 per cent stake in the company and Peak XV Partners owns 13.2 per cent, according to the data platform Tracxn. Other top investors in the firm include SoftBank, Prosus, WestBridge Capital and Fidelity.

 

Meesho has emerged as India's third-largest ecommerce platform, reaching a gross merchandise value run rate of $6.2 billion for 2024-25 (FY25). 

 

Till March 2024, Meesho was valued at about $3.9 billion, according to Tracxn.

 

A recent CLSA report projects the company will grow at a 26 per cent compound annual growth rate through FY31, as Meesho's gains come at the expense of incumbent players.

 

The new developments at Meesho follow its completion of a crucial corporate restructuring. In June, the National Company Law Tribunal (NCLT) approved Meesho's plan to relocate its headquarters from Delaware to India. The company is reportedly expected to pay approximately $288 million in taxes related to the so-called reverse flip.

 

A growing number of startups are accelerating plans to go public this year, deploying a range of strategic maneuvers in a bid to capitalise on improving market conditions and investor appetite.

 

Eyewear retailer Lenskart plans to add 450 stores in the current financial year, its fastest expansion in three years, as the company prepares for a public listing that could value it at up to $10 billion.The company expects to raise as much as ₹8,000 crore ($900 million) through its IPO, which could debut before November 12, according to  sources. Stockbroking startup Groww is preparing to launch a ₹7,000-crore initial public offering as early as next month.