It aims to raise $480 million through new shares and an additional $250-300 million via secondary sale by investors.
E-commerce unicorn Meesho has filed its updated draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI), marking a significant step toward what could become one of India’s largest internet IPOs in 2025.
In July, Meesho had filed its DRHP with a total issue size of $500 million.
Meesho To Raise ₹4,250 Crore
The SoftBank-backed firm plans to raise ₹4,250 crore ($480 million) through a fresh equity issue, alongside an offer for sale (OFS) of up to 17.57 crore shares worth ₹2,200-₹2,600 crore ($250-300 mn) by existing investors and promoters. This takes the total IPO size to around $800 million.
The IPO structure comprises two parts, a fresh issue aimed at strengthening Meesho’s balance sheet and funding growth initiatives, and an OFS involving partial exits by early backers. The proceeds from the fresh issue will be used to improve AI and technology infrastructure, cloud capabilities, marketing efforts, and potential inorganic growth opportunities.
Kotak Mahindra Capital, JP Morgan India, Morgan Stanley India, Axis Capital, and Citigroup Global Markets India are the lead managers for this highly anticipated IPO.
Who Will Be Participating In Meesho OFS?
The OFS will see participation from marquee investors such as Elevation Capital, Peak XV Partners, Y Combinator, Golden Summit, and Venture Highway, along with co-founders Vidit Aatrey and Sanjeev Kumar.
Growing Business Momentum
Operationally, Meesho has continued to show strong business momentum. In FY25, it connected over five lakh sellers to 199 million users, processing 1.8 billion orders. The platform’s Net Merchandise Value (NMV) surged 29% YoY to ₹29,988 crore, with a further 36% growth in Q1 FY26.
Meesho also turned free cash flow positive in FY25 with ₹1,032 crore, despite posting a net loss of ₹3,942 crore due to a one-time exceptional item.
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