Meesho gears for IPO; files updated DRHP with SEBI
Softbank-backed Meesho had confidentially filed its DRHP with SEBI to raise $500 million in fresh funds, two sources aware of the matter had told YourStory earlier in July.
Ecommerce platform Meesho has filed its updated draft red herring prospectus (UDRHP I) with the Securities and Exchange Board of India (SEBI), gearing up for its public debut.
Through this IPO, the Bengaluru 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.
According to the filing, the company aims to use the net proceeds towards investments in cloud infrastructure, funding AI and technology development, marketing and brand initiatives, and potential inorganic growth opportunities through acquisitions.
The Softbank-backed company had confidentially filed its DRHP with the market regulator to raise $500 million in fresh funds, YourStory had earlier reported in July.
Meesho's IPO follows its strong financial performance in FY25, which saw the company consolidate its position as India’s largest ecommerce platform by annual transacting users and placed orders. The platform connected over 5 lakh sellers with around 199 million transacting users, enabling 1.8 billion placed orders during the year.
According to the company, it has also become India’s largest free cash flow generator among scaled ecommerce players, swinging from a negative Rs 2,336 crore to a positive Rs 1,032 crore in FY25, including interest income.
Kotak Mahindra Capital, JP Morgan India, Morgan Stanley India, Axis Capital, and Citigroup Global Markets India are the book-running lead managers for the IPO.
Edited by Suman Singh