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Meesho Limited filed UDRHP for IPO with SEBI, aiming to raise Rs 4,250 crore. In FY25, Meesho led India in ATUs and orders, showing strong growth and improved cash flow.
Meesho IPO: Shareholders’ green light for Rs 4,500 public issue.
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 IPO includes a fresh issue of equity shares worth up to Rs 4,250 crore and an offer for sale (OFS) of up to 17.56 crore shares by existing shareholders.
Offer for Sale Details
The OFS will see share sales by investors including Elevation Capital V Limited, Peak XV Partners Investments V, Venture Highway SPVs LLC, Y Combinator Continuity Holdings I, Golden Summit Limited, VH Capital, and others. Promoter selling shareholders Vidit Aatrey and Sanjeev Kumar, along with individual shareholder Man Hay Tam, will also participate in the sale.
IPO Proceeds and Utilisation
The company plans to use the net proceeds to fund:
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Cloud infrastructure investments in its subsidiary Meesho Technologies Pvt Ltd.
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Salary and talent investments in AI, machine learning, and technology teams.
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Marketing and brand-building initiatives.
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Strategic acquisitions and general corporate purposes.
India’s Largest E-commerce Platform by Users
In FY25, Meesho became India’s largest e-commerce platform by Annual Transacting Users (ATUs) and Placed Orders. The company connected over 500,000 sellers with ~199 million ATUs, facilitating ~1.8 billion orders during the year.
Strong User Growth and Engagement
ATUs grew ~28% year-on-year in FY25, reaching ~213 million in the last twelve months ended June 2025. Order frequency improved from 7.5x in FY23 to 9.4x in LTM June 2025, signaling rising user engagement and loyalty.
Rapid Growth in Orders and NMV
Total orders surged from ~1 billion in FY23 to ~1.8 billion in FY25, with ~562 million orders recorded in Q1 FY26 — up ~50% year-on-year.
Net Merchandise Value (NMV) grew ~29% YoY to Rs 29,988 crore in FY25, and further ~36% YoY in Q1 FY26, reaching Rs 8,679 crore.
Turnaround in Cash Flow and Profitability
Meesho reported a free cash flow turnaround, moving from a negative Rs 2,336 crore to a positive Rs 1,032 crore (with interest income) in FY25 — making it India’s largest free cash flow generator among scaled e-commerce players.
Loss before tax and exceptional items narrowed from Rs 1,672 crore in FY23 to Rs 108 crore in FY25.
Exceptional Items Impact FY25 Net Loss
The FY25 net loss of Rs 3,942 crore was mainly due to one-time exceptional costs, including reverse flip tax and perquisite tax, linked to the company’s transition to a public structure.
Q1 FY26: Continued Growth Momentum
In Q1 FY26, Meesho recorded ~36% YoY NMV growth and ~50% growth in orders, reaching 562 million transactions. The quarter’s loss before exceptional items stood at Rs 148 crore, with a net loss of Rs 289 crore, reflecting ongoing growth investments.
Lead Managers to the Issue
The book-running lead managers to the IPO are Kotak Mahindra Capital, J.P. Morgan India, Morgan Stanley India, Axis Capital, and Citigroup Global Markets India.
Varun Yadav is a Sub Editor at News18 Business Digital. He writes articles on markets, personal finance, technology, and more. He completed his post-graduation diploma in English Journalism from the Indian Inst…Read More
Varun Yadav is a Sub Editor at News18 Business Digital. He writes articles on markets, personal finance, technology, and more. He completed his post-graduation diploma in English Journalism from the Indian Inst… Read More
October 19, 2025, 12:14 IST
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