Meesho is bringing IPO of ₹6,600 crore
Big news has come about Meesho, which has made its special place in the e-commerce market of India, especially in small cities and towns. The company is fully ready for its Initial Public Offering (IPO). Market regulator SEBI has given approval to Meesho to launch an IPO of ₹ 6,600 crore. This could be one of the big IPOs of this year. The company plans to be listed in the stock market by December. This IPO means that now common investors will also be able to become shareholders in this fast growing company.
This is the account of IPO
Of this ₹6,600 crore IPO There will be two parts. The company will raise ₹4,250 crore by issuing new shares. This money will go directly to Meesho, which she will use to expand her business and for other needs. The remaining portion of the IPO will come through ‘Offer-for-Sale’ (OFS). This means that the existing investors of the company, who had initially placed bets on the company, will earn profits by selling some of their stake.
These investors include big names like Elevation Capital and Peak XV Partners. This is a common process where early investors cash out their investments when the company goes public. Interestingly, the company’s founder, CEO Vidit Aatrey and CTO Sanjeev Barnwal will also sell some of their shares in the IPO.
Big loss on one side, sharp jump in revenue on the other side
Now let’s talk about the financial health of the company, which is most important for any investor. Meesho has shown a net loss of ₹3,941 crore for the financial year 2024-25. This figure may surprise investors at first sight. However, the company has also clarified the reason for this loss in its IPO filing.
According to Meesho, this loss is mainly due to ‘one-time’ expenses. This includes the costs associated with the IPO, the tax on registering the company from the US back to India (reverse flip) and other acquisition taxes, which were necessary to convert the company into a public structure.
If we keep the losses aside, then other figures of the company in FY 2025 look quite strong. Meesho’s operating revenue increased by 25% to ₹9,390 crore. At the same time, the net merchandise value (NMV) of the company increased by 30% to ₹ 30,000 crore. NMV means the total amount of goods sold on the company’s platform (returns and cancellations have been deducted from this).
These are the two big engines of Meesho’s growth.
The real strength of Meesho is its customers, who mostly come from Tier-2, Tier-3 and even smaller cities. The company’s annual transacting user base has increased by 28% in the financial year 2025. This figure reached 213 million (21.3 crore) in the quarter from April to June this year.
It has also been seen that people are purchasing from Meesho again and again. While in FY2023, a customer used to order an average of 7.5 times a year, in FY25 it increased to 9.2 times. This trend is also important because the next growth of e-commerce in India is coming from these cities. A report by Bain & Company also says that since 2020, three out of every five new online buyers have come from tier-3 or smaller cities. Meesho has strengthened its hold on this market.
Behind this rapid growth of the company is its own logistics arm ‘Valmo’. Since its launch in February last year, Valmo has handled about 61% of Meesho’s orders. In April-June this year, Valmo handled 300 million (30 crore) shipments, which leaves behind even the big players in the industry like Delhivery.