Meesho posts Rs 289 Cr loss in June quarter on IPO-related costs, higher ad spends
Meesho, which received SEBI's approval for $800 million IPO, reported operating revenue of Rs 9,389 crore in FY25, a 23% increase from the previous year, while its loss widened to almost Rs 4,000 crore.
SoftBank-backed ecommerce platform Meesho reported a net loss of Rs 289 crore in the quarter ended June 2025 as it absorbed reverse flipping cost attached with its IPO process, the company's updated Draft Red Herring Prospectus (DRHP) showed.
Meesho generated Rs 2,503 crore in operating revenue in the quarter, while its net merchandise value—a unit to measure the value of all goods sold on the platform—stood at Rs 8,679 crore, the prospectus showed.
The company said its losses widened to Rs 3,941 crore in FY25 from Rs 327 crore in FY24, owing to one-time exceptional items, including reverse flip tax and other taxes attached with the reorganisation of the company to a public entity, additional costs due to accelerated ESOP held by its promoters, as well as an increase in advertising expenses.
The company clocked Rs 9,389 crore in operating revenue in FY25 compared with Rs 7,615 crore in FY24.
Meesho paid Rs 2,777 crore in total expenses in the quarter ended June 30, 2025, as it focused on making investments in manpower, technology, and marketing. During the period, it paid Rs 41.4 crore in taxes, as well as Rs 239 crore in expenses associated with advertising and sales promotion, the DRHP showed.
The platform, which competes with Amazon and Flipkart, saw its annual transacting users at 21.3 million in the quarter ended in June 2025. During the same period, it saw 5.7 lakh sellers on the platform.
The Bengaluru-based company plans to raise up to Rs 4,250 crore through a fresh issue of equity shares, along with an offer for sale of up to 17.56 crore shares by existing shareholders.
The selling shareholders include some of Meesho’s early backers, including Elevation Capital, Peak XV Partners, Venture Highway, and Y Combinator, as well as co-founders Vidit Aatrey and Sanjeev Kumar, and individual investor Man Hay Tam.
Proceeds from the primary fundraise are expected to be used towards investments in cloud infrastructure, funding AI and technology development, marketing and brand initiatives, and potential inorganic growth opportunities through acquisitions.
Edited by Suman Singh