E-commerce Giant Meesho Files Confidential DRHP for ₹4,250 Crore IPO

E-commerce platform Meesho has taken a significant step towards its public listing, confidentially filing its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI).

The Bengaluru-based company aims to raise ₹4,250 crore in primary capital through this initial public offering (IPO). This move positions Meesho among a growing cohort of new-age companies seeking to list on Dalal Street.

Sources indicate that the total IPO size could reach up to ₹8,500 crore ($1 billion), incorporating both primary capital and a secondary share sale component. The company is reportedly targeting a listing around September-October this year.

Confidential Filing: A Strategic Play

Meesho's decision to pursue the confidential filing route is a strategic action. This approach allows the company to safeguard sensitive business information from rivals, such as Flipkart and Amazon.

Furthermore, it provides the flexibility to reassess and adjust IPO timelines should market conditions fluctuate. This confidential filing method has also been adopted by other notable new-age firms, including Pine Labs, Wakefit, Curefoods, Shadowfax, Groww, Steamhouse India, and PhysicsWallah.

Shadowfax, for instance, also recently filed confidential draft papers for a proposed IPO aiming to raise ₹2,000-2,500 crore.

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Pre-IPO Restructuring and Domicile Shift

In preparation for its public debut, Meesho has undertaken substantial internal restructuring. The company has recast its board, transitioned into a public entity, and completed its 'flip' back to India, formally shifting its domicile from the United States. This included the merger of its Delaware-based unit, Meesho Inc., with its Indian entity, Fashnear Technologies Private Limited. The National Company Law Tribunal (NCLT) approved this merger in May.

Subsequently, on May 13, 2025, Fashnear Technologies Private Limited was officially renamed Meesho Pvt Ltd, aligning with the company's focus on strengthening its brand identity as a leading Indian e-commerce platform.

Shareholders had previously granted their approval for the IPO and a change in the designation of co-founder and CEO Vidit Aatrey to Chairman and Managing Director.

Financial Resilience and Market Context

Founded in 2015 by Vidit Aatrey and Sanjeev Barnwal, Meesho operates as a low-cost e-commerce platform primarily serving online shoppers in tier-2, tier-3 cities and beyond.

The company has attracted significant investments from prominent entities, including SoftBank Group, Fidelity Investments, Prosus, and Peak XV Partners, and was last valued at nearly $4 billion. Financially, Meesho demonstrated resilience in the fiscal year 2023-24, with its revenue surging by 33% to ₹7,615 crore.

Notably, its loss significantly narrowed to ₹53 crore in FY24, a considerable improvement from a loss of ₹1,569 crore (excluding ESOP costs) in FY23. These financial improvements come as India's Nifty 50 has rebounded after dropping to a 12-month low earlier in the year, indicating a potentially more favourable market sentiment for new listings.

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Market Context and Sector Implications

Meesho’s IPO comes amid a resurgence in India’s tech IPO pipeline, with several digital-first companies filing for public listings in recent months. The move signals renewed investor appetite for high-growth, tech-led businesses after a prolonged funding winter.

Meesho’s listing is expected to set benchmarks for valuation and governance in the e-commerce sector, potentially paving the way for other unicorns to tap the public markets.

Conclusion

Meesho’s confidential DRHP filing for a ₹4,250 crore IPO marks a pivotal moment for India’s e-commerce and startup ecosystem. With strong financial growth, strategic governance changes, and robust investor backing, the company is poised to make a high-profile market debut later this year. The IPO’s success will be closely watched as a bellwether for the next wave of Indian tech listings.

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