Indian e-commerce major Meesho Limited has filed its Updated Draft Red Herring Prospectus (UDRHP-I) with the Securities and Exchange Board of India (SEBI), marking a major step toward its much-anticipated initial public offering (IPO).
The proposed IPO includes a fresh issue of equity shares worth ₹4,250 crore and an offer for sale (OFS) of 17.56 crore equity shares by existing investors including Elevation Capital, Peak XV Partners, Venture Highway, Y Combinator Continuity, and others. Founders Vidit Aatrey and Sanjeev Kumar, along with Man Hay Tam, are also among the selling shareholders.
According to the filing, Meesho plans to utilize the proceeds to invest in cloud infrastructure, AI and technology development, brand initiatives, and strategic acquisitions through its subsidiary Meesho Technologies Private Limited.
India’s Largest E-Commerce Platform by Users
Meesho has emerged as India’s largest e-commerce platform by Annual Transacting Users (ATUs) and Placed Orders in FY25, connecting over 500,000 sellers with nearly 199 million users, and enabling 1.8 billion orders during the year.
The company reported 28% annual growth in users, with order frequency rising from 7.5x in FY23 to 9.4x in FY25, signaling growing engagement and trust across Tier-2 and Tier-3 markets.
Financial Turnaround and Growth Momentum
Meesho’s Net Merchandise Value (NMV) rose 29% year-on-year to ₹29,988 crore in FY25, and further 36% in Q1 FY26, reaching ₹8,679 crore. The company also recorded a strong cash flow turnaround, becoming India’s largest free cash flow generator among scaled e-commerce players with ₹1,032 crore (including interest income).
Its loss before tax narrowed sharply from ₹1,672 crore in FY23 to ₹108 crore in FY25. However, the company reported a net loss of ₹3,942 crore in FY25 due to one-time exceptional items including reverse flip and perquisite taxes linked to its transition to a public structure.
Aiming for Sustainable Growth
Commenting on the filing, Meesho said it remains focused on democratizing internet commerce and expanding affordable access to online shopping across India.
The IPO will be jointly managed by Kotak Mahindra Capital, J.P. Morgan India, Morgan Stanley India, Axis Capital, and Citigroup Global Markets India.
