E-commerce firm Meesho's ₹2,439 cr anchor book sees 30x oversubscription

This is led by SBI MF, GIC, Fidelity, BlackRock, Axis MF, Aditya Birla MF and prominent tech investors like Dragoneer

E-commerce firm Meesho has allocated Rs 2,439 crore to more than 60 anchor investors ahead of its initial public offering. The anchor tranche includes participation from leading global institutional investors GIC, Fidelity and BlackRock; India’s largest domestic mutual funds SBI Mutual Fund, Axis Mutual Fund and Birla Mutual Fund; and globally prominent technology-focused investors such as Dragoneer Investment Group, Morgan Stanley Investment Management (Counterpoint Global), Goldman Sachs Asset Management and WCM Investment Management.

 

The anchor book witnessed demand of over Rs 80,000 crore, translating into nearly 30 times oversubscription. This strong response reflects deep institutional confidence in Meesho’s governance practices, disciplined execution and long-term opportunity within India’s rapidly expanding digital commerce ecosystem.

 

 

Out of the total allocation of 219,778,524 equity shares to the anchor investors, 45.91 per cent of the total allocation to anchor investors was allocated to 14 domestic mutual funds and five domestic insurance companies.

 

The combination of global long-only investors, leading Indian mutual funds and high-signal technology specialists highlights the strength and diversity of Meesho’s anchor book. It also highlights the company’s position as one of the most compelling technology platforms to come to market in recent years.

 

Meesho, one of India's first major e-commerce platforms preparing to go public, has turned free cash flow positive despite posting losses in FY26. The company recently said profitability will follow as an "outcome" of disciplined capital allocation.

 

In an interview with Business Standard, Sanjeev Kumar, the company's co-founder, whole-time director and chief technology officer, earlier said Meesho generated about Rs 1,010 crore in positive free cash flow in FY25, including interest income, as accelerating order growth and a low-cost logistics network offset continued losses.

 

The company is now betting on artificial intelligence (AI), logistics efficiency and advertising to drive sustainable margins.

 

Kumar said Meesho has already crossed an important financial threshold and is entering the market from a position of strengthened fundamentals. The company’s investment priorities — AI, customer acquisition and selective inorganic expansion — are structured to accelerate growth while reinforcing the platform’s core business model.

 

Investments in AI are central to the platform’s growth and user engagement. Kumar also highlighted AI’s role in enhancing customer interactions, particularly in deeper rural markets.

 

The company already leverages AI to manage a growing ecosystem of over 706,000 sellers in the last 12 months as of September 30, 2025, and 1.26 billion placed orders for H1FY26.

 

In the six months ended September 30, 2025, Meesho reported 234.2 million annual transacting users, up from 175.1 million a year earlier. Orders rose to 1,261.14 million from 824.59 million over the same period in 2024. On the seller side, annual transacting sellers climbed to 706,000 in the 12 months through September 2025, compared with 440,000 a year earlier, with each seller averaging 3,214.5 orders — a sign of strong engagement and platform stickiness.