Meesho receives shareholder approval to raise ₹4,250cr via IPO
What's the story
Bengaluru-based e-commerce platform Meesho has bagged shareholder approval to launch its initial public offering (IPO). The company plans to raise ₹4,250 crore through this move. The decision was taken during an extraordinary general meeting of the company's shareholders and comes after Meesho's recent shift in domicile from the US to India.
IPO details
Meesho to file IPO under SEBI's confidential route
Meesho will file its draft IPO prospectus under SEBI's confidential route. The proposed offering will comprise a fresh issue of equity shares worth up to ₹4,250 crore and an offer for sale of equity shares by some existing shareholders. To note, the company's shareholders have approved the appointment of founder Vidit Aatrey as chairman, managing director, and CEO.
Investors
Last funding round valued firm at $3.9B
Meesho's largest institutional shareholders include Elevation Capital, Peak XV Partners, and Prosus, each holding a 13-15% stake. Japanese investor SoftBank owns nearly 10% of the value retail-focused e-tailer. Other investors in the company are WestBridge Capital and Fidelity. Meesho's last funding round was a $550 million one, mainly in secondary transactions, which valued it at around $3.9 billion—slightly lower than its peak valuation of $5 billion.
Business expansion
It could become India's 1st horizontal e-commerce company to list
The firm has expanded its 2024 employee stock option plan (ESOP) by adding 1.1 million options, bringing the total to 7.5 million stock options. In FY25, Meesho recorded over 1.8 billion orders—a whopping 37% year-on-year growth from fiscal 2024's 1.3 billion orders. With this IPO, Meesho could become the first horizontal e-commerce company to list on Indian bourses.