Meesho IPO: Key Things To Know About Ecommerce Company's Public Issue From DHRP

Before the year ends, several companies are seeking to raise money via the primary market. After major public issues such as the Tata Capital IPO and LG Electronics India IPO hit the D-street, the public issue of Meesho is also expected to open soon.

The e-commerce company recently filed its updated draft red herring prospectus (UDRHP). While the exact date on which Meesho IPO will open for subscription is not known, the company is likely to float its public issue in the first week of December according to reports. Ahead of the opening of the public issue, here’s a look at some of the key details related to the public issue from the DRHP.

Meesho IPO: Issue Price and Key Dates

The exact issue size of the Meesho IPO is not known. However the company is said to be targeting an issue size ranging between Rs 5,800–6,600 crore. Notably the issue will also have a fresh issue component of Rs 4,250 crore as per the DRHP and an offer-for-sale of 175.7 million shares. The price band for the public issue has not been announced yet.

Meesho IPO: Selling Shareholders

Several early investors in Meesho Ltd will sell their stake in the company as a part of the offer-for-sale. Some of the major institutional sellers include Elevation Capital V Ltd, Peak XV Partners Investments V Ltd, Highway Series 1, Series of Venture Highway SPVs LLC Y Combinator Continuity Holdings I, LLC. On the other hand promoters of the company Vidit Aatre and Sanjeev Kumar will also reduce their stake in the OFS. Prior to the issue, the promoters held 18.51 per cent stake in the company.

Meesho IPO: Reservation

Meesho Ltd has set aside up to 75 per cent of the issue size for qualified institutional buyers, 10 per cent for retail investors and 15 per cent for non-institutional investors.

Meesho: Key Financials

In the quarter ended June 30, 2025 Meesho’s total income stood at Rs 2,629.96 crore, the company posted a net loss of Rs 289.36 crore and a net worth of Rs 1,322.11 crore.

Meesho Ltd total income for FY25 stood at Rs 9900.9 crore increasing by 26 per cent from Rs 7859.24 crore in FY24. The ecommerce company’s net loss widened to Rs 3,941.71 crore in FY25 from Rs 327.64 crore in FY24. The net worth of the company fell by 25 per cent to Rs 1561.88 crore in FY25 from Rs 2301.64 crore in the preceding fiscal.

Meesho: Key Competitors

Meesho competes with both online and offline businesses offering products and services to consumers, sellers and delivery personnel, including large horizontal marketplaces, category specific platforms, traditional retailers such as supermarkets and hypermarkets, and emerging models such as social and quick commerce platforms. Some of the major listed peers of Meesho Ltd as per the DRHP include Eternal Ltd, Swiggy Ltd, Brainbees Solutions Ltd, FSN E-Commerce Ventures Ltd, Vishal Mega Mart Ltd, Trent Ltd and Avenue Supermarts Ltd.

Meesho: Business Model

Meesho Ltd mentioned in its DRHP that the company operates as a multi-sided technology based ecommerce platform which operates by bringing together consumers, sellers, logistics partners and content creators. The company stated that its platform is designed to serve all segments of consumers across India by making ecommerce affordable, accessible and engaging. The company runs on a zero commission model for sellers enabling it to reduce the average cost charged to sellers and provide an assortment of products ranging from low cost unbranded products, regional brands and national brands on Meesho.

Meesho: Key Strengths and Risks

Some of the key strengths mentioned in Meesho’s DRHP include:

• Meesho claimed in its draft papers that it deploys a technology-driven approach for problem solving, rather than relying on manual interventions. The company added that as of June 30, 2025 the company’s technology workforce made up 56.55 per cent of its total employee base.

• The company added that its ‘everyday low prices’ policy is also among its qualitative strengths, as a part of the policy the company gives consumers products at low prices without having to rely on limited time discounts and event based flash sales.

• The ecommerce company claimed in its DRHP that it has an ability to scale in a capital efficient manner and operates on an asset-light business model and does not manufacture private label products, making it platform more capital efficient compared to organized retail models or other e-commerce models that may depend on physical stores, warehousing, owned inventory and/or captive logistics.

Some of the key risks mentioned in Meesho DRHP include:

• Meesho posted a substantial net loss of Rs 3,941 crore in FY25 on account of one-time restructuring costs associated with its re-domiciliation to India. However, the company posted a net loss again in Q1 FY26.

• Meesho mentioned in its DRHP that one of its service providers, Amazon Web Services India Private Limited (AWS) has initiated arbitration proceedings against the company before a three-person arbitral tribunal in New Delhi under the Arbitration and Conciliation Act, 1996. The arbitration was initiated for alleged non-payment of invoices pursuant to a private pricing addendum dated February 25, 2022 executed between AWS and Meesho. However, Meesho has disputed the invoices raised by AWS alleging deficiencies in the services provided by AWS. The amount claimed by AWS in the matter amounts to Rs 1,274.51 million.

• The company also cited over-reliance on cash-on-delivery for a large portion of orders. In the three months period ended June 30, 2025, cash-on-delivery orders made up 75.09 per cent of all shipped orders. The company added that CoD reduces the rate of successful deliveries and increases operational inefficiencies and risks related to cash handling CoD orders as consumers may refuse to accept the delivery of the product, leading to increased logistics costs, and operational inefficiencies.

Meesho IPO: Objective

Meesho seeks to use the proceeds of its public issue for investing in cloud infrastructure in Meesho Technologies Private Ltd, payment of salaries to existing and replacement hires and expenditure towards marketing and brand initiatives and for funding growth through acquisitions and other strategic initiatives.