365telugu.com online news,Mumbai, 22nd October, 2025:Meesho Limited, a leading multi-sided e-commerce platform connecting consumers, sellers, logistics partners, and content creators, has filed its Updated Draft Red Herring Prospectus (UDRHP I) with the Securities and Exchange Board of India (SEBI).
The filing outlines Meesho’s proposed initial public offering (IPO), comprising a fresh issue of equity shares up to ₹4,250 crore (face value ₹1 each) and an offer for sale of up to 17,56,96,602 equity shares (face value ₹1 each) by shareholders, including Elevation Capital V Limited, Peak XV Partners Investments V, Highway Series 1, Y Combinator Continuity Holdings I, LLC, Golden Summit Limited, VH Capital, VH Capital XI, promoters Vidit Aatrey and Sanjeev Kumar, and individual shareholder Man Hay Tam.
Utilization of Proceeds
The net proceeds will fund:
- Cloud infrastructure investment for Meesho Technologies Private Limited (subsidiary).
- Salaries for AI, machine learning, and technology teams at the subsidiary.
- Marketing and brand initiatives through the subsidiary.
- Inorganic growth via acquisitions and strategic initiatives, plus general corporate purposes.
Meesho’s Market Leadership
In FY25, Meesho became India’s largest e-commerce platform by Annual Transacting Users (ATU) and annual Placed Orders, connecting over 500,000 sellers with ~199 million ATUs and facilitating ~1.8 billion orders. This reflects Meesho’s commitment to affordable, accessible, and engaging e-commerce across India.
For the Last Twelve Months (LTM) ending June 2025, ATUs reached ~213 million, with a ~28% year-on-year growth in FY25. Order frequency rose from 7.5x in FY23 to 9.2x in FY25 and 9.4x for LTM June 2025, driven by enhanced platform discovery and user experience.
Total orders grew from ~1 billion in FY23 to ~1.8 billion in FY25, with ~562 million orders in Q1 FY26, reflecting ~50% year-on-year growth. Notably, orders from the top 8 cities grew by ~46%, outpacing the platform’s overall ~37% growth in FY25.
Financial Performance
Meesho’s Net Merchandise Value (NMV), the cumulative checkout value of delivered orders (including taxes), increased by ~29% year-on-year to ₹29,988 crore in FY25, following ~21% growth in FY24. In Q1 FY26, NMV surged ~36% to ₹8,679 crore, driven by improved pricing, discovery, and assortment. NMV is a key indicator of platform health, reflecting customer adoption and repeat usage.
Meesho achieved a significant financial turnaround, becoming India’s largest free cash flow generator among scaled listed e-commerce companies in FY25. Free cash flow for LTM shifted from a negative ₹2,336 crore to a positive ₹1,032 crore (with interest income) and ₹591 crore (excluding interest income), highlighting its asset-light, capital-efficient model.
Loss before tax and exceptional items narrowed from ₹1,672 crore in FY23 to ₹108 crore in FY25, despite increased investments in technology and user acquisition. However, a net loss of ₹3,942 crore in FY25 was recorded, primarily due to one-time costs like reverse flip tax and perquisite tax for transitioning to a public structure. In Q1 FY26, loss before exceptional items was ₹148 crore, with a net loss of ₹289 crore, reflecting strategic growth investments.
Meesho’s FY25 and Q1 FY26 performance underscore its leadership in democratizing e-commerce. The company remains focused on expanding market reach, delivering long-term value, and building a sustainable growth foundation.
Kotak Mahindra Capital Company Limited, J.P. Morgan India Private Limited, Morgan Stanley India Company Private Limited, Axis Capital Limited, and Citigroup Global Markets India Private Limited are the Book Running Lead Managers for the IPO.