One of the leading online fashion retailers and E-commerce players, Meesho, has filed a confidential DRHP to raise ₹4,250 crores from the primary market. Meesho IPO is likely to open in September-October 2025 and will unlock the space for retail investors to be part of this leading e-commerce company. So, let’s find out all the details about the Meesho IPO, including its business model, financials, and funding.
Meesho IPO: Joining the Bandwagon
Meesho has filed the confidential IPO draft papers with SEBI to raise ₹4,250 crores through a fresh issue and a similar amount in secondary share sales, bringing the total to ₹8,500 crores. The company has joined the bandwagon of leading companies that filed DRHP last week, including Pine Labs (fintech company), Wakefit (home and sleep solutions company), and Curefoods (cloud kitchen player).
With Meesho IPO’s confidential route, the company is keeping sensitive information private for a longer period of time. In the past, Shadowfox Technologies and Physics Wallah have also taken this route.
Recently, the company has also merged its Delaware-based company, Meesho Inc., into its Indian business arm. In May 2025, the company officially changed its name to Meesho Pvt. Ltd. from Fashnear Technologies Pvt. Ltd.
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Meesho IPO: About the Company
Meesho was founded in the year 2015 by Vidit Aatrey and Sanjeev Barnwal, and it caters to Tier-II and Tier-III cities across India, supports entrepreneurs (especially women) and small businesses, and expands the online shoppers’ base in underserved cities.
In 2021, Meesho became India’s first e-commerce company to provide a zero commission advantage, which allowed the seller to retain all their profits. With a focus on the low-cost segment, the company achieved a milestone of 11 crore daily active product listings across fashion, home, kitchen, beauty, and kids care categories as of December 2024.
Meesho IPO: Financial Performance
Meesho’s revenue from operations grew to ₹7,615 crores in FY24, a growth of 33% from the previous financial year. In FY23, the company made an operating revenue of ₹5,735 crores.
In the financial year 2023-24, Meesho became India’s first horizontal e-commerce company to achieve a positive free cash flow (FCF) of ₹197 crores. In FY23, it was under the negative FCF of ₹2,341 crores. This growth was largely driven by the increase in the unique Annual Transacting Users, along with the higher order frequency from repetitive customers.
The profitability, though still not achieved, its adjusted losses (excluding ESOP cost) reduced by a whopping 97% to ₹53 crores in FY24. However, the contribution profit (revenue left after the variable cost) increased by 85% YoY to ₹1,393 crores in the financial year 2023-24. The strong revenue, cash flow, and a step towards profitability can attract higher interest from retail investors in the Meesho IPO.
Meesho IPO: Operating Performance
In the period between April 2023 and March 2024, Meesho order count stood at over 134 crores, up 31% on a YoY basis. Between April 2024 to December 2024, this order count was steady at 133 crores, with a YoY growth of 34% and 48 lakh orders per day.
As of December 2024, Meesho has 18.7 crores of unique Annual Transacting Users (ATUs), and around 13% of India made purchases through the Meesho App in FY24. From FY22 to 9M FY25, the ATU of Meesho grew at a CAGR of 22% along with a constant growth in LTM (Last Twelve Months) frequency.
The increase in order count and ATU is a clear reflection of Meesho’s higher order frequency of daily needs products, ranging from home and kitchen essentials to beauty products and baby essentials.
Meesho IPO: Domicile and Funding
Backed by SoftBank, Prosus, Fidelity Investments, and Tiger Global, Meesho successfully shifted its domicile from the US to India in June 2025. This provides great visibility and an easy regulatory environment for the Meesho IPO process. The company has raised over $1.3 billion in private funding rounds and achieved a valuation of $4 billion.
Conclusion
Meesho IPO filing certainly created a buzz in the IPO market as investors are generally more interested in these new-age and growing business models. With robust financial numbers, a growing user base, and the rising interest of Gen Z consumers in the e-commerce space, this IPO can truly become the next big thing in the stock market this year. So, don’t miss the chance and open free Demat account by downloading the SMC ACE App today to invest in IPOs, mutual funds, stocks, and more.
Reference:
https://investor.meesho.com/investor-web/_next/docs/annual_report_2023_2024.pdf
Author: All Content is verified by SMC Global Securities.
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