Meesho Plans Major IPO Amid Rapid Valuation Surge
SoftBank-backed Meesho, the homegrown e-commerce platform, is set to make a blockbuster stock market debut by raising $1 billion through an Initial Public Offering (IPO). The company is expected to be valued at $10 billion, marking a 2.5X increase from its $3.9 billion valuation in 2024.
Meesho has already appointed Morgan Stanley, Kotak Mahindra Capital, and Citi as its investment bankers, with potential discussions underway to include JP Morgan in the IPO syndicate. According to sources, the company is moving swiftly, targeting a listing on Indian stock exchanges around Diwali 2025.
Meesho’s IPO to Outpace Flipkart
If Meesho successfully lists in September-October 2025, it will have beaten Walmart-owned Flipkart to the public markets. Flipkart, which has been dominant in the Indian e-commerce space since 2007, is also gearing up for an IPO, but its listing timeline remains uncertain, as it awaits a decision from its parent company, Walmart.
In contrast, Meesho, founded in 2015, has emerged as a major competitor, particularly by catering to value-conscious consumers in Tier-3 cities and beyond. The company’s unique business model and cost-effective seller onboarding process have allowed it to capture a significant market share despite facing strong competition from Amazon and Flipkart.
Investment Bankers and Listing Timeline
As per industry insiders:
Meesho has already confirmed Morgan Stanley, Kotak Mahindra Capital, and Citi as the lead advisers for its IPO.
JP Morgan may also be added to the syndicate, depending on ongoing discussions.
The company plans to file its draft IPO documents in the coming weeks.
Stock market debut expected around Diwali (September-October 2025).
Neither Meesho, Citi, Morgan Stanley, JP Morgan, nor Kotak Mahindra Capital has responded to inquiries regarding the listing.
Valuation Surge: Meesho’s Market Strategy Pays Off
The e-commerce company’s valuation jump from $3.9 billion in 2024 to a potential $10 billion underscores its strong growth trajectory.
Meesho’s planned IPO aligns with a trend where Indian startups like PhysicsWallah (PW), Ather, and Lenskart are seeking significantly higher valuations in the public markets than during private funding rounds.
However, some new-age tech firms like Ola Electric, MobiKwik, and Firstcry had to adjust their IPO valuations below initial expectations, ensuring they left some value for incoming investors.
Relocation of Headquarters & Tax Liabilities
Before launching its IPO, Meesho must flip its corporate headquarters from Delaware, USA, to India. The relocation process is reportedly in the advanced stages, and the company is expected to incur approximately $300 million in taxes due to the reverse merger.
This move is crucial as it aligns Meesho’s corporate structure with Indian regulatory norms, making it easier to comply with SEBI guidelines and attract domestic institutional investors.
Financial Growth and Profitability Trends
Meesho’s revenue growth and reduced losses signal improving financial health, which could strengthen investor confidence in the IPO.
| Financial Year | Revenue (₹ Crore) | Net Loss (₹ Crore) |
|---|---|---|
| FY22 | 3,240 | (3,248) |
| FY23 | 5,735 | – |
| FY24 | 7,615 | (305) |
The company’s revenues have more than doubled from ₹3,240 crore in FY22 to ₹7,615 crore in FY24, while net losses have significantly reduced from ₹3,248 crore to ₹305 crore.
This turnaround reflects operational efficiencies, strong customer retention, and a widening seller base, helping Meesho position itself as a high-growth yet profitable e-commerce player.
Competing in India’s E-Commerce Market
While Flipkart remains the market leader, Meesho’s unique approach of targeting non-metro and rural consumers has set it apart. The company has successfully:
Empowered small businesses and local sellers through a low-cost, reseller-driven model.
Gained traction among price-sensitive consumers in smaller towns and cities.
Reduced dependence on deep discounts, thereby improving profitability.
Meesho’s IPO comes at a time when India’s digital commerce industry is expanding rapidly, with increasing internet penetration and mobile commerce adoption.
