Meesho, an Indian e-commerce platform backed by SoftBank, is preparing to go public later this year. The company plans to raise around $1 billion through an initial public offering (IPO), according to sources familiar with the development.
Meesho’s upcoming IPO is set to be one of the most anticipated in the Indian startup ecosystem. Meesho has selected Morgan Stanley, Kotak Mahindra Capital, and Citi as advisors for its IPO, sources said. Additionally, there is a possibility that JP Morgan will also be included in the IPO syndicate if discussions move forward.
If Meesho successfully lists on the stock exchange this year, it will be ahead of its main competitor, Flipkart, which is owned by Walmart. Flipkart, which has been a leading player in Indian e-commerce since its launch in 2007, is also planning to go public. However, it is currently waiting for its parent company, Walmart, to finalize a timeline for its IPO.
Meesho’s Valuation and IPO Timeline
Meesho is expected to file its draft IPO documents in the coming weeks, and the listing is likely to happen around Diwali (September-October period), according to sources. Bankers have pitched a valuation of around $10 billion for the company. If Meesho is listed at this valuation, it would mark a significant jump from its previous valuation of $3.9 billion in 2024, representing a 2.5 times increase.
With this move, Meesho will join a growing list of Indian startups such as PhysicsWallah (PW), Ather, and Lenskart, which are seeking higher valuations compared to their private market fundraising rounds. Many companies aim to expand aggressively and attract new investors by offering strong growth prospects.
However, in the past, some new-age companies like Ola Electric, MobiKwik, and FirstCry had to settle for IPO valuations lower than expected or even at a discount compared to their last private funding rounds. This strategy is often used to make shares more attractive for incoming investors, both retail and institutional.
Meesho’s Growth and Market Strategy
Although Meesho entered the e-commerce market relatively late in 2015, it has grown rapidly and improved its profitability. Despite facing competition from well-funded players like Flipkart and Amazon, Meesho has carved out a niche by targeting Tier 3 and smaller cities, focusing on value-conscious consumers.
Meesho’s financial performance has shown strong growth in recent years:
- Revenue: ₹3,240 crore in FY22 → ₹5,735 crore in FY23 → ₹7,615 crore in FY24
- Net Loss: ₹3,248 crore in FY22 → Reduced to ₹305 crore in FY24
This significant reduction in losses indicates that Meesho is moving towards profitability, which could boost investor confidence as it prepares for its IPO.
