Meesho's IPO could value the company at $6B
What's the story
Leading value-focused e-commerce platform Meesho is eyeing a post-money valuation of around $5.93 billion (₹52,500 crore) for its upcoming initial public offering (IPO), according to Moneycontrol. The Bengaluru-based company will take on Walmart-owned Flipkart and Amazon in the Indian market. After roadshows and investor discussions, Meesho has finalized its valuation and is preparing for an early December listing.
IPO timeline
IPO journey and future plans
Meesho filed its draft papers with Securities and Exchange Board of India (SEBI) in July through the confidential route. The updated draft red herring prospectus (UDRHP-1) was submitted on October 18, with a second update likely next week. According to UDRHP-1, Meesho plans to raise ₹4,250 crore through fresh issues and offer up to 175,696,602 equity shares for sale. Some of the key selling shareholders include Elevation Capital, Peak XV Highway Series 1, and promoters Vidit Aatrey and Sanjeev Kumar.
Fund allocation
Proceeds to fund various initiatives
Meesho plans to use the funds from its IPO for cloud infrastructure, inorganic expansion, and other business initiatives. The company operates as a multi-sided technology platform, linking consumers, sellers, logistics partners, and content creators. Across India, Meesho offers consumers "Everyday Low Prices" by giving sellers a cost-effective way to provide a wide range of affordable products.
Information
Advisors and lead managers
Meesho has appointed Morgan Stanley, Kotak, and Citi as its IPO advisors. The book-running lead managers for the offering are Kotak Investment Banking, JPMorgan, Axis Capital, Citi, and Morgan Stanley. The company's upcoming IPO is one of the most anticipated tech listings of the year.