Meesho to Launch ₹6,000 Crore IPO in December: Key Details Investors Should Know

81
11 Nov 2025
5 min read

News Synopsis

Mumbai-based e-commerce platform Meesho is set to enter the stock market with a ₹6,000 crore IPO in December 2025. The offering will include a mix of fresh issuance and stake sales by existing investors, marking a major step in the company’s growth journey.

Meesho’s Massive IPO Set for December

Mumbai-based e-commerce platform Meesho is preparing to enter the capital markets soon. According to banking sources, the company plans to launch its Initial Public Offering (IPO) in the second week of December 2025, with an expected issue size ranging from ₹5,500 crore to ₹6,000 crore.

Capital Raise Through New Issue and OFS

Out of the total IPO size, Meesho is expected to raise around ₹4,250 crore through a fresh issue, while existing investors may sell ₹1,500–2,000 crore worth of shares via an Offer For Sale (OFS). The final size of the IPO is still under discussion.

For this IPO, Kotak Mahindra Capital, JP Morgan India, Morgan Stanley India, Axis Capital, and Citigroup Global Markets have been appointed as Lead Book Running Managers. As of now, neither Meesho nor the banks have made an official statement.

Major Investors to Partially Sell Stake

Several major investors in Meesho are reportedly planning to sell a portion of their holdings in this IPO. Key investors include:

  • Elevation Capital

  • Peak XV Partners (formerly Sequoia Capital India)

  • Venture Highway

  • Y Combinator Continuity

  • Golden Summit Limited

Additionally, founders Vidit Aatrey and Sanjeev Barnwal may also offload a part of their stakes.

Holding Structure Shift for Indian Listing

Earlier this year, Meesho shifted its holding structure from the U.S. to India to comply with Indian listing regulations and simplify compliance. The company’s IPO had already received approval from the Securities and Exchange Board of India (SEBI) last month.

Financial Overview: Losses and Revenue Growth

For FY24–25, Meesho reported a net loss of ₹3,941 crore, which may initially surprise investors. The company explained in its IPO filing that this loss was primarily due to one-time expenses, including:

  • IPO-related costs

  • Taxes incurred for reverse-flipping its registration from the U.S. to India

  • Other non-recurring regulatory costs

Excluding these one-time items, Meesho’s operating revenue for FY25 rose 25% to ₹9,390 crore, while its Net Merchandise Value (NMV) increased 30% to ₹30,000 crore. NMV represents the total value of goods sold on the platform, net of returns and cancellations.

Meesho’s Growth Engines

Meesho’s core strength lies in its customer base, primarily from Tier-2, Tier-3, and smaller cities. In FY25, the annual transacting user base grew 28%, reaching 213 million (21.3 crore) in the April–June quarter.

Additionally, repeat purchase behavior is rising. In FY23, each customer placed an average of 7.5 orders per year, which increased to 9.2 orders per year in FY25. This trend highlights the growing contribution of smaller cities to India’s e-commerce growth. A report by Bain & Company indicates that three out of every five new online buyers since 2020 are from Tier-3 or smaller cities, reinforcing Meesho’s market positioning.

Logistics Power: Valmo

A significant driver of Meesho’s rapid growth is its in-house logistics arm, Valmo, launched in February last year. Valmo handled approximately 61% of Meesho’s orders, and in the April–June quarter alone, it managed 300 million (30 crore) shipments, surpassing major logistics players like Delhivery.

Conclusion

With a projected IPO size of ₹5,500–6,000 crore, Meesho aims to capitalize on its strong revenue growth, expanding user base, and robust logistics network. While historical losses may concern some investors, the company’s underlying fundamentals and increasing repeat purchase rates present a promising growth story in India’s e-commerce sector.

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