Meesho Files $800M IPO After SEBI Nod, Eyes India Listing

Meesho has received SEBI approval to launch an IPO sized at roughly $700–800 million, combining a fresh issue and an offer-for-sale. The timing aligns with a broader wave of new-age companies tapping public markets, but the company’s FY25 results, widened by restructuring costs tied to its base-flip, complicate the valuation narrative for public investors.

IPO size and structure: what Meesho is raising

Meesho is looking to raise around $480 million (Rs 4,250 crore) via a fresh issue, while the offer-for-sale (OFS) component may add $250–300 million (Rs 2,200–2,600 crore). That puts the total deal size in the $700–800 million range — a large debut that will include share sales by early backers and promoters alongside fresh capital for growth.

The company reported that Meesho's net loss for FY25 stood at Rs 3,941 crore, up from Rs 305 crore, due to expenses related to flipping its base from the US to India. Without the exceptional item, Meesho’s net loss was Rs 289 crore. That legal and accounting cost is material: it inflates headline losses and will be a talking point in investor meetings, even as management stresses the underlying operating trajectory.

Market norms suggest IPO dilutions of around 10%, which would imply a valuation in the $7–8 billion band if Meesho follows similar sizing. The book-building process — expected to take 30–45 days — will determine pricing. The company’s pitch must reconcile aggressive growth metrics with a near-term loss narrative made more visible by one-off costs.

Early investors including Peak XV Partners, Elevation Capital, Venture Highway (now part of General Catalyst), Y Combinator and others are expected to participate in the OFS, alongside promoters Vidit Aatrey and Sanjeev Barnwal. The composition of sellers and the share of OFS will shape aftermarket flows and investor perception during the listing

Meesho says funds will be used for tech costs, brand building and general corporate needs. For a platform that competes on network effects and low CAC, investment in product, marketplace quality and logistics can accelerate monetisation, but the capital intensity and time to profitable unit economics will be closely scrutinised.

Risks investors should know about:

1. One-off vs. recurring losses: separating the Delaware-to-India flip cost from core operating losses.

2. Path to profitability: timeframe and assumptions behind margin improvement.

3. Market competition and marketplace economics: how Meesho defends GMV and take rates vs rivals.

4. Post-IPO lockups and OFS volume: potential supply pressure in early trading.

SEBI approval positions Meesho as one of the next high-profile new-age listings, but the company must sell two narratives to public markets: a scalable, tech-driven growth engine and a credible, short-to-medium-term path to profitability starting with clear disclosure on the exceptional flip-related cost and its one-time nature.