Meesho Secures Shareholder Nod for ₹4,250 Crore IPO

E-commerce giant Meesho has received overwhelming shareholder approval to raise a substantial ₹4,250 crore through an initial public offering (IPO). This crucial development, confirmed through regulatory filings, marks a significant stride for the SoftBank-backed firm as it prepares for its highly anticipated public listing in India. The resolution for the IPO was officially passed during an extraordinary general meeting (EGM) held on June 25, 2025.

Strategic Domicile Shift Underpins IPO Bid

The shareholder approval comes on the heels of Meesho’s strategic completion of its domicile shift from the United States to India. This complex but vital move, which involved the merger of its Delaware-based entity, Meesho Inc., with its Indian arm, Fashnear, received the green light from the National Company Law Tribunal (NCLT), Bengaluru bench, on May 27. Regulatory filings indicated this transaction as a "merger involving a foreign company".

Furthermore, Fashnear Technologies Private Limited was officially rebranded as Meesho Private Limited on May 13, 2025, a change intended to bolster Meesho's brand identity as a dominant e-commerce platform in India and reflect its evolution into a comprehensive online marketplace. While such domicile shifts often entail significant tax payments to governments, this step is viewed as a prerequisite for its Indian public listing plans.

Notably, other major e-commerce players like Flipkart are also reportedly in the process of shifting their domiciles to India, signalling a broader trend.

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Leadership Rejig and Investor Backing

In tandem with its IPO preparations, Meesho has also enacted a key leadership change. Shareholders have approved the redesignation of Meesho Co-Founder and CEO, Vidit Aatrey, as the Chairman and Managing Director of the company, in addition to his CEO role. This leadership restructuring was supported by key investors, including Elevation Capital, Peak XV Partners, Prosus, and SoftBank.

The company has also recalibrated its board, with representatives from SoftBank and Prosus stepping down, while the largest shareholders, Elevation Capital (13.5% stake) and Peak XV Partners (12.5% stake), will continue to have their representatives on the board.

Strong Financial Performance Sets Stage

Meesho's recent financial performance provides a robust backdrop for its IPO aspirations.

The company significantly narrowed its losses (excluding ESOP costs) to just ₹53 crore in the financial year 2023-24, a drastic improvement from a net loss of ₹1,569 crore in the previous fiscal year.

Revenue from operations also saw a healthy 33% increase, reaching ₹7,615 crore in FY24 compared to ₹5,735 crore in FY23. This growth was primarily driven by an expansion in unique annual transacting users and increased order frequency from existing customers.

The e-commerce firm has proudly claimed to be the first horizontal Indian e-commerce company to achieve profitability in fiscal 2024 and generate a positive free cash flow of ₹197 crore for the full year.

Its platform boasted approximately 187 million unique Annual Transacting Users (ATUs) by December 2024, accounting for roughly 13% of India's population.

Total orders placed surged to 1.3 billion by the same period, indicating growing customer engagement and a wider range of purchases across categories such as Home & Kitchen, Beauty & Personal Care, and Baby Essentials.

The Road Ahead: Filing the DRHP

With shareholder approval secured, the next critical step for Meesho is to file its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI).

Reports suggest the company may opt for the confidential route for this filing. While shareholders have approved raising up to ₹4,250 crore through a fresh issuance of equity shares, the proposed offering is expected to include both a fresh issue and an offer for sale (OFS) component from existing shareholders, with a potential total fundraising target of around ₹8,500 crore ($1 billion).

The final size of the IPO, however, will only be determined closer to the DRHP filing date. This move positions Meesho firmly on the path to becoming a publicly listed entity in the Indian market, reflecting both its operational milestones and strategic corporate actions.

Conclusion

Meesho’s shareholder-approved ₹4,250 crore primary raise marks a pivotal milestone in India’s e-commerce landscape. With robust growth metrics, leadership stability, and strategic restructuring, the IPO positions Meesho as a bellwether for consumer-tech listings. Success could catalyse further public debuts from Indian startups, reshaping the market’s approach to tech investments.

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