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Meesho expects a valuation of ₹70,360 crore post-IPO.
E-commerce platform Meesho has received approval from SEBI for its Initial Public Offering i.e. IPO. Meesho has submitted its updated draft red herring prospectus (UDRHP) for the IPO with the Securities Exchange Board of India i.e. SEBI.
How much money will Meesho raise?
Meesho will raise about $ 480 million (Rs 4,221 crore) through fresh issue i.e. issuing new shares. Apart from this, shares worth $300 million (Rs 2,638 crore) will be sold in Offer for Sale (OFS).
The overall size of the IPO will be $ 800 million (Rs 7,036 crore). The company will use this fund on tech upgrades, brand building and general corporate expenses.
Meesho expects ₹70,360 crore valuation
The book building process will continue for 30-45 days, after which the IPO will be launched and the valuation will be finalised. But usually companies sell 10% shares in IPO, so Meesho’s valuation is expected to be set around $8 billion (Rs 70,360 crore).
Meesho’s founders Vidit Atre and Sanjeev Baranwal left their jobs in 2015 and started a startup named Fashionier.
Who will sell shares in OFS?
In the OFS, Meesho’s old investors like Peak XV Partners, Elevation Capital, Venture Highway (now part of General Catalyst), Y Combinator and others will sell their shares. Besides, the company’s founders Vidit Atre and Sanjeev Baranwal will also sell some of their stake.
Loss in FY25 stood at ₹3,941 crore
According to reports, the company’s revenue in FY24 was Rs 7,615 crore, but the loss was Rs 305 crore. Losses further increased to Rs 3,941 crore in FY25. The reason for this was that the company had incurred extra expenses on shifting from Delaware, America to India.
If these extra expenses were removed, the company’s FY25 loss would have been only Rs 108 crore. There was a loss of Rs 289 crore in Q1FY26 also. Meesho’s focus right now is on growth, not profit. The company will follow the same path in the coming quarters also.
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