Meesho's $1 Bn IPO Plan in Full Swing; Picks Morgan Stanlay, Citi as Advisers

Ecommerce major Meesho has reportedly picked advisers, including Morgan Stanley, Kotak Mahindra Capital, and Citi for its IPO (initial public offering). Currently, the company has started discussions about its plan to raise $1 billion through IPO, according to a report published by MoneyControl.

Adding to the list, JP Morgan may also get added to the IPO syndicate if the talks materialise, the report said. While the company which is expected to go public later in the year is aiming to raise $1 billion, bankers have suggested a valuation of $10 billion.

Meesho will file the draft documents for its upcoming IPO in the coming weeks, it added. This came two months after the ecommerce giant secured a fresh funding from investors like Think Investments, Mars Growth Capital, and Tiger Global.

“Meesho is one of the potential companies to be listed on the bourses in 18 months,” said Meesho’s backer Prosus during its investor presentation of H1 FY25 in December 2024.

Read More | Meesho Sees 35% Order Growth in 2024; Number of Users Up 25% to 175 Million

Meesho's 2024 Order Growth

SoftBank-backed e-commerce company Meesho has recorded a 35% annual growth in orders while the number of users on the platform increased 25% to 175 million in 2024. Despite challenging market conditions, it sustained growth trajectory and reached approximately 175 million annual transacting users in 2024, up 25% from 140 million users a year ago.

"With about 35% year-on-year increase in orders, the platform is a clear reflection of strong consumer sentiment and the rapidly expanding adoption of e-commerce across the country. This growth is driven by India's value-seeking shoppers, who are prioritising affordability in discretionary categories such as fashion, beauty, personal care, and home essentials," Meesho said in a statement.

Read More | Ecommerce Goes Beyond Metros! Meesho's 50% Customer Base Comes From Tier 4+ Cities

Founded in 2015 by Vidit Aatrey and Sanjeev Barnwal, Meesho has grown into one of India’s leading e-commerce platforms, claiming over 15 lakh sellers and more than 140 million annual transacting users.

Backed by marquee investors such as DST Partners, Elevation Capital, Meta (formerly Facebook), and Prosus, the ecommerce major has made significant strides in its financial performance. In FY24, Meesho reduced its net loss by 81.8% to Rs 304.9 crore from Rs 1,675 crore the previous year, while its operating revenue rose 32.8% to Rs 7,614.9 crore from Rs 5,734.5 crore in FY23.