Meesho wants to raise $1B via IPO at $10B valuation
What's the story
SoftBank-backed e-commerce platform Meesho is gearing up for a public listing in India later this year. The company hopes to raise about $1 billion through its initial public offering (IPO), Moneycontrol has reported. The IPO is expected to value the company at around $10 billion, a significant jump from its 2024 valuation of $3.9 billion.
Advisory team
Meesho selects advisors for IPO
Meesho has hired Morgan Stanley, Kotak Mahindra Capital, and Citi as advisors for its IPO. Talks are said to be underway to add JP Morgan to the group. The company is likely to file its draft documents in the coming weeks and hopes to get listed on the stock exchanges around Diwali this year (between September and October).
Relocation
Shift to India and tax implications
Before going ahead with its IPO plans, Meesho has to shift its headquarters from Delaware, US to India. This is in advanced stages and will cost the company about $300 million in taxes due to the migration. If successful, Meesho will join the league of Indian start-ups like PhysicsWallah, Lenskart, and Ather Energy, seeking a valuation that is much higher than what they achieved during private market fundraising.
Expansion
Growth and market strategy
Despite entering the e-commerce sector later than competitors like Walmart's Flipkart and Amazon in 2015, Meesho has rapidly expanded its market share. The company has concentrated on Tier 3 cities and value-conscious consumers. In FY22, Meesho's revenues stood at ₹3,240 crore which rose to ₹5,735 crore in FY23 and ₹7,615 crore in FY24. Meanwhile, its net loss fell from ₹3,248 crore in FY22 to ₹305 crore in FY24.