Meesho IPO to debut on Dalal Street, with an aim to raise Rs 5,421 Cr

Meesho, the SoftBank-backed e-commerce platform is scheduled to open for subscription on 3^rd December. The company aims to raise Rs 5,421 crore through the public listing on the domestic stock exchanges, the BSE and NSE, with a tentative listing date of 10 December 2025

Meesho plans to fix the IPO price bands at Rs 105 to Rs 111 per equity share. At the upper end of the band, the company is valued at Rs 50,096 crore (approx. USD 5.6 billion).

The total issue size of Rs 5, 421 crore comprises of two components. A fresh issue of shares worth Rs 4,250 crore. And, an Offer for Sale (OFS) of 10.55 crores shares, valued at approximately Rs 1,171 crore at the upper price band by existing investors.

Early backers participating in the OFS include prominent names like Elevation Capital, Peak XV Partners, Venture Highway, and Y Combinator.

How Meesho plans to use the capital?

The funds raised through thr Fresh Issue component will be channeled towards strengthening the company’s growth. Meesho’s primary objectives for the net proceeds are investing Rs 1,390 crore in cloud infrastruture within its subsidiary, Meesho Technologies Private Limited (MTPL).

Allocating ₹1,020 crore for expenditure toward marketing and brand-building activities to expand its market presence. Then, designating ₹480 crore for salaries of existing and replacement hires within the Machine Learning and Artificial Intelligence (AI) technology teams for continued development.

And, funding inorganic growth through acquisitions and other strategic initiatives, along with general corporate purposes.

Meesho’s E-commerce position and financial health

Founded in 2015 by Vidit Aatrey and Sanjeev Kumar, Meesho established itself as a major player in the Indian e-commerce space by focusing on the value-conscious segment and non-metro cities.

While the company reported strong traction in platform metrics, its financial filing for FY25 showed a net loss of Rs 3,942 crore. The company attributed a significant portion of this loss to one-time exceptional items, including expenses related to reverse flip tax and perquisite tax, necessary for the transition to a public structure.

Despite the reported loss, the company has shown signs of improving operational health. Its Net Merchandise Value (NMV) grew by 29% year-on-year in FY25 to Rs 29,988 crore, following 21% growth in FY24.25 This growth, coupled with a focus on cost control and operational efficiency, positions Meesho's listing as a significant test for investor appetite