Meesho IPO: Here is what it means to be India’s first Horizontal E-Commerce Listing

The fact that Meesho is the first e-commerce corporation that offers horizontal service and is getting listed on the exchange is good news to users. It indicates the rise of the company and inculcation of strength with the investors. It can result in improved services, an increased range of products and also improved shopping experiences on Meesho. In addition, being a listed company implies that Meesho will strive more to remain reliable and transparent as this is in the interest of customers. All in all, its post-IPO evolution will bring more thrilling offers, quicker deliveries, and new possibilities to the table to be enjoyed by the users.

Meesho based in Bengaluru, has received a green signal on its proposed initial public offering (IPO) by its shareholders who have approved the issuance of fresh equity shares to raise 4,250 crore (approx 500 million dollars), as per the filings made with the Registrar of Companies. The shareholding vote was passed at an extraordinary general meeting and this means that Meesho will be the first horizontal e-commerce unicorn to list in the Indian stock markets, which will be history to the business.

Meesho to become a Horizontal E-Commerce online entry

Meesho IPO will involve both the primary fundraise, as well as, an offer of sale (OFS) by existing shareholders, and will raise a total issue size of approximately Rs.8,500 crore (1 billion dollars). Moneycontrol reports that Meesho shareholders approved raising Rs4,250 crore in primary capital through the IPO, with the total issue size (including the offer for sale by existing shareholders) expected to be around Rs 8,500 crore (1 billion dollars). The company will first file its draft red herring prospectus (DRHP) with SEBI through the confidential route, which became a possibility after Meesho shifted domicile of its headquarters from the US to India earlier this year. It was after the order of the National Company Law Tribunal that this strategic relocation was finalised, in the month of May 2025.

This will enable the firm to maintain its confidential information relating to financial and business matters during the process of closing down the IPO transaction. Meesho will have the ability to time the release of this information to the general population and the investors and can prevent the unnecessary exposure to them at the same time it will allow them to control market perception and relieve some pressure during the preparation process. Essentially, it allows Meesho to plan in advance before displaying the entire information to the world.

Sanjeev Barnwal, co-founder, added on LinkedIn "This IPO is a testament to the resilience and innovation of our sellers and employees. We’re building for Bharat, and this is just the beginning."

The investors are Elevation Capital, 13-15%, and Peak XV Partners, with 13- 15% of the company and Prosus 13-15% and SoftBank almost 10 percent. Other investors include WestBridge Capital and Fidelity. It was also a board decision to appoint co-founder Vidit Aatrey as the chairman, managing director and the chief executive officer of the company, which indicates a new priority in leadership with the company going into the public markets.

The final round of the company supported Meesho with 550 million dollars (mostly by secondary sales), which raised its value to approximately 3.9 billion dollars (slightly lower than its highest estimation of 5 billion dollars). It has had a solid performance too, processing more than 1.8 billion orders during FY25, which is a 37 percent increase year-on-year, compared to 1.3 billion in FY24, a recent Prosus investor presentation says. Meesho also saw its revenues grow 33 percent to Rs.7,615 crore and reduced its net loss by 82 percent to Rs.304.9 crore to turn profitable and reported a positive free cash flow of Rs.197 crore in FY25.

Future outlook

This is India IPO through which Meesho will be the first horizontal e-commerce firm that will make history, beating other rivals such as Flipkart that are also planning a domestic IPO. The step will also be seen as a precedent that influences other internet-first and new age firms like Groww, Pine Labs, Urban Company, and Lenskart, which are seeking go-public options in the near future. On X, Vidit Aatrey, Meesho’s co-founder and CEO, wrote "Taking Meesho public is a dream come true for our team and partners. We’re proud to lead the way as India’s first horizontal e-commerce IPO."

The IPO could prove to be a historic occasion in the Indian e-commerce industry with the DRHP filing just around the corner and a fortified management team. Being the first horizontal e-commerce listing in the market, it will be eyed by the industry players, investors, and competitors.

Read More

Is the IPO race back again?

Why is PhysicsWallah IPO Raising Such a Large Amount?

Hexaware’s ₹8,750 Crore IPO Sets a New Benchmark in India

Indian Startups to Benefit from IPO Boom: Booming Tech Ecosystem