Meesho files draft IPO papers to raise Rs 4,250 crore

New Delhi, Oct 19 (PTI) Softbank-backed e-commerce firm Meesho has filed updated draft papers with markets regulator Sebi to raise Rs 4,250 crore through an initial public offering.

The proposed initial public offering (IPO) comprises a fresh issue of equity shares aggregating up to Rs 4,250 crore and an offer for sale of up to 17,56,96,602 equity shares by certain existing shareholders.

The offer for sale includes the sale of equity shares by some of Meesho's early investors, including Elevation, Peak XV, Venture Highway and Y Combinator.

According to sources, existing investors are looking to sell around 5-7 per cent of their holdings.

The valuation of the firm and the total size of the IPO of Meesho will depend on the share price band that will be disclosed later.

According to the document, Meesho plans to utilise the net proceeds towards investment for cloud infrastructure in Meesho Technologies Private Limited, payment of salaries of existing and replacement hires for the machine learning and AI and technology teams for AI and technology development undertaken by Meesho, expenditure towards marketing and brand initiatives and funding inorganic growth through acquisitions and other strategic initiatives and general corporate purposes.

Kotak, JP Morgan, Morgan Stanley, Axis and Citi are the Book Running Lead Managers to the issue.

Meesho has reported around 29 per cent growth in net merchandise value on a year-on-year basis to Rs 29,988 crores in the financial year (FY) 2025, following around 21 per cent growth in FY24, according to the document.

The company, in the first quarter of FY26, has recorded around 36 per cent NMV growth to Rs 8,679 crore.

It posted a net loss of Rs 3,942 crore in FY25, primarily due to one-time exceptional items, including reverse flip tax and perquisite tax necessary for the company's transition to a public structure, the document said.

"Meesho is the largest e-commerce player in India in terms of annual placed orders in the last twelve months ended June 30, 2025 and for the fiscal year 2025. Meesho has the highest placed orders per day among the e-commerce players in India in the last twelve months ended June 30, 2025. In the last twelve months ended June 30, 2025, Meesho recorded approximately 5.8x the number of placed orders compared to the average of scaled e-commerce players," the document said.

The company had filed draft documents with SBI in July through a confidential route. PTI PRS BAL BAL