Meesho Announces IPO Plans with Morgan Stanley and Citi as Leads

In a major step geared towards financial expansion, Meesho is actively working on an ambitious initial public offering (IPO), meant to raise $1 billion, according to the sources.

Strategic Financial Advisors onboard

The e-commerce giant very tactically houses the triumvirate of Morgan Stanley, Kotak Mahindra Capital, and Citi to spearhead its IPO efforts. These money powerhouses are guiding Meesho to an intensive valuation of $10 billion extremely wide jump from the $3.9 billion valuation it received in 2024. Discussions are still on the boil to include JPMorgan in the IPO syndicate, thus stepping up the banking muscle behind Meesho's entry into the market.

Timing and Expected IPO

Meesho's IPO is being timed to coincide with the festive fervor of Diwali, targeting a listing on Dalal Street during the auspicious September-October period. With the company becoming a unicorn mostly supporting small businesses and individual entrepreneurs, this act is now all the more meaningful. Draft IPO papers are to be filed shortly, and this key event marks another step in the journey of growth for Meesho.

Relocation: A Strategic Move

Meesho is finalising its move for the upcoming IPO- the headquarters shift from Delaware back into India. This move is part and parcel of the compliance and operations framework, with a tax implication of nearly $300 million because of this reverse merger. This strategic relocation can easily be seen as Meesho's commitment to consolidating its operational base in its primary market.

Financial Milestones and Growth

• Meesho's financial state has improved remarkably over the years:
• Operating revenue of the company increased by 33% to end the last fiscal year at Rs 7,615 crore from Rs 5,735 crore.
• 97% reduction in adjusted losses, with the recent figures being at Rs 53 crore, compared to Rs 1,569 crore for FY23.

As per Meesho, it has 145 million unique annual transacting users, along with increased frequency of orders, especially from the fast-expanding non-metro areas of the country. The company is likely to follow a very definite road to realize sustainable profitability within the next fiscal year or two.  

By making such strategic moves coupled with a strong cash flow, Meesho will surely make great changes to the market, showing its readiness for entering a new period of greater growth and dominance in the market.