Meesho files draft papers for its ₹4,250cr IPO
What's the story
E-commerce platform Meesho has filed a draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for its upcoming initial public offering (IPO). The company plans to raise around ₹4,250 crore in primary capital through this IPO. The filing was done under SEBI's pre-filing route, allowing companies to keep their prospectus details confidential.
Financial growth
33% increase in operating revenue
Meesho's shareholders had approved the IPO plan last week. The company, which is backed by SoftBank, Prosus, Peak XV Partners, and Tiger Global, moved its domicile from the US to India in June. In its annual report for FY24 released in March, Meesho reported a 33% increase in operating revenue to ₹7,615 crore. It also narrowed its adjusted loss by 97% to ₹53 crore and achieved positive operating cash flow.
Funding details
$550 million raised in last funding round
In its last funding round, Meesho raised $550 million mainly through secondary transactions. The round valued the company at about $3.9 billion, down from its peak valuation of $5 billion. A June presentation by investor Prosus revealed that in FY25, Meesho clocked over 1.8 billion orders, a 37% increase from the previous year.
Market debut
Meesho could become 1st horizontal e-commerce company to list
With this proposed IPO, Meesho could become the first horizontal e-commerce company to list on Indian bourses. Its rival, Walmart-owned Flipkart, is also shifting its domicile from Singapore to India ahead of a planned public issue next year. Meesho has appointed JP Morgan, Morgan Stanley, Citi, Kotak Mahindra Capital, and Axis as advisers for its IPO.