SoftBank-backed e-commerce platform Meesho is reportedly planning to launch its planned initial public offering (IPO) later this year. The company has already selected Morgan Stanley, Kotak Mahindra Capital, and Citi as its banking advisers, a report by Moneycontrol said.
Citing sources in the know, the report noted that the firm aims to raise $1 billion through the IPO. If Meesho proceeds with its listing in 2025, it would surpass Walmart-owned Flipkart, a dominant player in the e-commerce industry. Notably, Flipkart has been preparing for a market debut but is still awaiting a final decision from its parent company.
Founded in 2007, Flipkart has been exploring IPO options, but Meesho’s rapid progress puts it ahead in the race to go public.
Citing a source familiar with the discussions, the report said that bankers proposed a valuation of $10 billion for Meesho, and talks about adding JP Morgan to the IPO syndicate were ongoing. The company plans to file its draft documents in the coming weeks and aims for a stock exchange listing around Diwali, likely in the September-October period, the report stated.
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Valuation and Market Positioning
If Meesho achieves a $10 billion valuation at the time of listing, it would represent a significant 2.5X jump from its $3.9 billion valuation in 2024. This would place Meesho among a growing list of Indian startups, including PhysicsWallah, Ather, and Lenskart, that have sought substantial valuation increases before going public.
Unlike some companies such as Ola Electric, MobiKwik, and Firstcry, which went public at lower valuations than their private fundraising rounds, Meesho appears confident in its ability to command a strong valuation. The company has expanded rapidly since its inception in 2015, gaining market share by focusing on price-sensitive consumers in smaller cities and rural areas, a segment largely untapped by bigger players like Flipkart and Amazon.
Financial Growth and Profitability
Meesho reported impressive financial growth, with revenue increasing from Rs 3,240 crore in FY22 to Rs 5,735 crore in FY23 and reaching Rs 7,615 crore in FY24. Meanwhile, net losses reduced significantly, declining from Rs 3,248 crore in FY22 to just Rs 305 crore in FY24.
Before moving forward with its IPO, however, Meesho needs to relocate its headquarters from Delaware, USA, to India. This process is already in advanced stages, with the company expected to pay approximately $300 million in taxes resulting from the reverse merger, media reports said.