Meesho's Board Clears IPO Plan for ₹4,250 Crore Fresh Issue; OFS Component Likely

Meesho has received its board approval for an initial public offering, raising up to ₹4,250 crore along with an offer for sale component. The e-commerce unicorn’s shareholders approved raising up to ₹4,250 crore through issuance of fresh equity shares. However, the final IPO size will be known only when the company files the draft papers.

According to a report by The Economic Times, Meesho plans to file its draft red herring prospectus with the Securities and Exchange Board of India through the confidential route. The shareholders have also approved a change in the designation of the company’s Co-Founder and CEO Vidit Aatrey as chairman and managing director of the company, the report added.

The approval for its IPO came after Meesho completed its domicile shift to India from Delaware in the US. The company has merged its Delaware-based entity with its Indian arm, which was approved by the Bengaluru bench of the National Company Law Tribunal. It had also changed its name recently from Fashnear Technologies Pvt. Ltd. to Meesho Pvt. Ltd.

The e-commerce platform was founded in 2015 and is currently, the third-largest e-commerce firm in the country, by gross merchandise value.

According to reports, Meesho has made significant progress on profitability, slashing its losses by 82% to ₹304.9 crore in FY25 from ₹1,675 crore in FY23. Its revenue from operations rose 33% to ₹7,614.9 crore from ₹5,734.5 crore a year ago. Meesho had claimed in its annual report that it is the first horizontal Indian e-commerce firm to have achieved profitability in FY24, generating a positive free cash flow of ₹197 crore for the year.

The company had also approved to issue ₹411.4 crore worth of bonus shares in May. The company will issue bonus shares of ₹1 each to equity shareholders at a ratio of 47:1, taking its paid-up share capital to ₹420.1 crore from ₹8.7 crore.