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News Topical, Digital Desk : Meesho IPO 2025: E-commerce platform Meesho has filed an updated draft red herring prospectus (UDRHP) with SEBI and received approval for its initial public offering (IPO). The company is now preparing to raise new funds from the public market. Meesho will raise approximately $480 million, or approximately Rs 4,250 crore, through this IPO.
The total IPO size is estimated to be ₹6,500-7,000 crore.
Additionally, an amount of $250-300 million, or approximately ₹2,200-2,600 crore, will come through an offer for sale (OFS). Consequently, the total IPO size is expected to be between ₹700-800 million, or approximately ₹6,500-7,000 crore. The company will use the raised funds for technology infrastructure, brand building, and general corporate needs.
The bookbuilding process for the IPO will be completed in the next 30 to 45 days, after which the final valuation will be determined. Companies typically dilute approximately 10% of their stake in an IPO, which could lead to a valuation of Meesho of approximately ₹7-8 billion. This would be slightly lower than its initial target of ₹10 billion to leave some margin for retail investors.
Is Meesho profitable? Under the OFS, Meesho's early investors, such as Peak XV Partners, Elevation Capital, Venture Highway (now part of General Catalyst), and Y Combinator, will sell their shares. Promoters Vidit Aatrey and Sanjeev Barnwal will also sell some of their shares. It's worth noting that the company is currently not profitable. The company will focus on growth over profitability . In FY24, Meesho's revenue was ₹7,615 crore, while the loss was ₹305 crore. In FY25, its loss widened to ₹3,941 crore due to expenses related to the base transfer from Delaware to India. However, after excluding exceptional items, the company's actual loss in FY25 was ₹108 crore. Meesho's net loss in Q1 FY26 was ₹289 crore. The company has clarified that it will continue to focus on growth over profitability in the coming quarters.
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