India’s leading social commerce platform Meesho has received the final nod from the Securities and Exchange Board of India (SEBI) to launch its Initial Public Offering (IPO). With this, Meesho becomes one of the most anticipated startup listings of 2025. The IPO size, originally planned at ₹8,000 crore, has now been revised to ₹6,600 crore.
IPO Structure and Details
According to SEBI’s approval, the Meesho IPO will include:
- Fresh Issue: ₹4,250 crore
- Offer for Sale (OFS): ₹2,350 crore
Under the OFS component, early investors like SoftBank, Prosus, Peak XV Partners, and Fidelity are expected to offload part of their holdings.
The IPO will be listed on both BSE and NSE, and Meesho is expected to file its Red Herring Prospectus (RHP) by mid-November 2025.
Expected Timeline
| Event | Tentative Date |
| IPO Opening Date | 2nd week of December 2025 |
| IPO Closing Date | 3rd week of December 2025 |
| Allotment Finalization | Last week of December 2025 |
| Listing Date | 1st week of January 2026 |
(Dates are tentative and subject to change in the final RHP.)
Why IPO Size Was Reduced from ₹8,000 Cr to ₹6,600 Cr
- Market Sentiment Adjustment
- The tech IPO environment has been cautious after moderate responses to other startup listings like FirstCry and Ola Electric.
- Reducing the IPO size makes it easier to achieve strong subscription and positive listing performance.
- Lower Offer for Sale (OFS)
- In the initial draft, OFS was about ₹3,500–₹3,800 crore.
- In the updated filing, it’s been cut down to ₹2,350 crore, indicating that existing investors are retaining confidence in the company’s future.
- Reduced Fresh Issue Requirement
- Meesho already holds cash reserves of around ₹2,000 crore.
- Hence, the company opted to raise ₹4,250 crore instead of ₹5,000 crore earlier planned.
- Adjusted Valuation Range
- The company’s IPO valuation has been revised from $4.8–5 billion to around $4.2–4.4 billion, aligning with current market conditions.
| Phase | Total IPO Size | Fresh Issue | OFS | Valuation (Approx.) |
| Initial DRHP (June 2025) | ₹8,000 Cr | ₹5,000 Cr | ₹3,000 Cr | $4.8–5 Billion |
| Updated DRHP (Oct 2025) | ₹6,600 Cr | ₹4,250 Cr | ₹2,350 Cr | $4.2–4.4 Billion |
(Sources: Economic Times, Mint, Business Standard)
Use of IPO Proceeds
Meesho plans to utilize the fresh issue amount for:
- Expanding its technology and product platform
- Strengthening its logistics and fulfillment arm Valmo
- Meeting working capital requirements
- Repaying part of its outstanding borrowings
Company Overview
Founded in: 2015 by Vidit Aatrey and Sanjeev Barnwal
Headquarters: Bengaluru, India
Meesho started as a social commerce platform enabling small businesses and individuals to sell products via social media channels like WhatsApp and Facebook. Over time, it transformed into a full-fledged e-commerce marketplace, directly competing with Amazon and Flipkart.
In 2024, Meesho relocated its parent holding entity from the US to India, allowing it to list as a domestic Indian company — a move that earned appreciation under the “Make in India IPO” initiative.
Financial Performance
| Metric | FY24 | FY25 |
| Operating Revenue | ₹7,640 Cr | ₹9,390 Cr |
| Net Loss | ₹3,248 Cr | ₹3,942 Cr |
| Order Volume | ~1.8 Billion | ~2.3 Billion |
| Active Sellers | 1.3 Million+ | 1.7 Million+ |
While losses remain, revenue growth and order volume expansion reflect strong user engagement and improving business efficiency.
Major Investors
- SoftBank Vision Fund
- Prosus Ventures (formerly Naspers)
- Peak XV Partners (Sequoia India)
- Fidelity Management
- Meta Platforms (Facebook)
These investors have backed Meesho through multiple rounds, with SoftBank and Prosus being the largest stakeholders.
Strategic Outlook
- Meesho is aiming to reach profitability by FY27 through a focus on low-cost logistics, AI-driven seller support, and sustainable commission structures.
- The company is also expanding into grocery and electronics, areas traditionally dominated by large e-commerce players.
- Its logistics arm Valmo is expected to become a separate profit center in the next two years.
Why This IPO Matters
- This will be India’s largest startup IPO of 2025, marking a significant milestone for the domestic tech ecosystem.
- Meesho will be one of the first homegrown e-commerce companies to list publicly in India.
- The move signals renewed investor confidence in India’s digital commerce sector.
Investor Takeaway
Meesho’s IPO combines growth potential with operational risk. While its path to profitability is still developing, its strong market position, loyal user base, and reduced IPO valuation make it an attractive long-term story for investors seeking exposure to India’s digital economy.
Outcome
With SEBI’s approval, Meesho is set to make history as one of the most prominent startup listings in India. The company’s decision to moderate its IPO size and valuation reflects maturity and market alignment — key factors that may drive positive investor sentiment during listing.
