Meesho, a leading social commerce platform in the country, has secured a crucial approval for its plan to enter the stock market. The company is now rapidly moving towards raising fresh capital of ₹4250 crore. According to documents filed with the Registrar of Companies, Meesho received the green light after the approval of shareholders at its recent Extraordinary General Meeting (EGM).
Increased Momentum Following the Shift
Meesho recently transferred its domicile from the United States to India. This move is considered a strategic decision towards its upcoming listing. Immediately after this step, the company began preparing to file its Draft Red Herring Prospectus (DRHP) under the confidential route of the Securities and Exchange Board of India (SEBI).
Formal Launch of Entry into the Stock Market
The company plans to bring a fresh issue of up to ₹4250 crore. Simultaneously, some existing investors may also sell their stake in the market. This proposed IPO includes a plan to offer partial exits to investors through an Open Offer for Sale (OFS). According to market sources, Meesho's public offering may go live in the coming months after receiving SEBI's approval.
Co-founder Vidit Aatrey to be Chairman and CEO
Another important proposal was approved at the company's Extraordinary General Meeting. Under this, Meesho's co-founder, Vidit Aatrey, has now been assigned the responsibility of Chairman, Managing Director, and CEO. This decision was taken with a view to further strengthening the company's leadership, ensuring transparency and strategic direction in the IPO process.
Major Investors May Also Sell Stakes
Existing investors in Meesho include names like Elevation Capital, Peak XV Partners (formerly Sequoia India), Prosus, SoftBank, WestBridge Capital, and Fidelity. Some of these investors hold stakes of 10 to 15 percent. Reports suggest that some major investors like Prosus and Elevation Capital are considering partial stake sales during the IPO.
Preparation to Become the First Horizontal E-commerce Company
If everything goes according to the plan, Meesho could become the first horizontal e-commerce company to be listed in India. So far, no Indian company in this category has been listed. However, Walmart-owned Flipkart has also taken steps in this direction and is also in the process of transferring its domicile to India.
Assessment of Business Model and Growth
Meesho's business model focuses on connecting customers and sellers spread across the small towns and cities of India. The company has created a unique e-commerce ecosystem through social media and reselling. Over the past few years, it has achieved great success by delivering mainly low-cost products to Tier-2 and Tier-3 cities.
According to a presentation by Prosus, Meesho completed a total of 1.8 billion orders in FY2025. This figure is 37 percent higher than the 1.3 billion orders of the previous year. This increase has strengthened investor confidence.
Funding and Valuation Track Record
Meesho had raised about $550 million in its previous funding, which was mainly through secondary transactions. At that time, the company's valuation was around $3.9 billion. This was slightly lower than its previous highest valuation of $5 billion. In that round, new investors like Tiger Global, Think Investments, Mars Growth Capital also participated.
Significant Expansion in ESOP Scheme
Meesho has also recently made a major expansion in its Employee Stock Option Plan (ESOP). In 2024, 11 lakh new options have been added, bringing the total plan to 75 lakh options. This also creates the potential for significant benefits for the company's employees in the IPO.
When Will the Listing Happen?
Although no official date for the listing has been announced by the company, it may launch its IPO in the next two to three months after filing the DRHP. According to market experts, if the market conditions remain favorable, this could prove to be the most awaited IPO of this year.
