Meesho to raise ₹4,250 crore via fresh equity issue.
Existing investors to sell 17.56 crore shares in OFS.
IPO funds to boost AI, cloud tech and marketing capabilities.
Meesho Limited, a multi-sided E-commerce platform has filed its Updated Draft Red Herring Prospectus (UDRHP) with the Securities and Exchange Board of India (SEBI).
The proposed initial public offering (IPO) includes a fresh issue of equity shares amounting up to ₹4,250 crore and an offer for sale (OFS) of up to 17.56 crore shares by existing shareholders.
IPO Fund Deployment
The company plans to utilise the net proceeds to fund cloud infrastructure investments in its subsidiary Meesho Technologies Pvt Ltd.; salary and talent investments in AI, machine learning and technology teams; marketing and brand-building initiatives; and strategic and general corporate purposes.
Ability to Scale
In FY 25, Meesho emerged as India’s largest e-commerce platform by Annual Transacting Users (ATUs) and Placed Orders.
According to reports, the company connected over 5,00,000 sellers with about 199 million ATUs, facilitating about 1.8 billion orders during 2025.
Between Fiscals 2023 and 2025, the company’s ATUs grew from 136.40 million to 198.77mn, and the Placed Orders grew from 1.02bn to 1.83bn. In the last twelve months ended June 30, 2025, Meesho’s ATUs grew to 213.17mn, and our Placed Orders grew to 2.02bn.
According to reports, Meesho also turned free cash flow positive in FY25, generating ₹1,032 crore, but it posted a net loss for the year at ₹3,942 crore, due to one-time exceptional item.
Offer for Sale
The offer for sale comprises of equity shares by Elevation Capital V Limited, Peak XV Partners Investments V, Highway Series 1, a Series of Venture Highway SPVs LLC, Y Combinator Continuity Holdings I, LLC, Golden Summit Limited, VH Capital, VH Capital XI (Corporate Selling Shareholders), Vidit Aatrey, Sanjeev Kumar (Promoter Selling Shareholders) and Man Hay Tam (Individual Selling Shareholder).
