E-commerce firm Meesho has filed an updated draft red herring prospectus with the Securities and Exchange Board of India (Sebi), as it prepares for an initial public offering (IPO) targeted for December, according to people familiar with the development.
The latest filing outlines plans to raise between $700 million and $800 million, including a primary share sale of $500 million. The revised prospectus provides greater detail on Meesho’s equity structure and lists the participation of existing shareholders who intend to sell part of their stakes through an offer for sale (OFS).
Among the investors expected to participate in the OFS are Elevation Capital, Peak XV Partners, and Venture Highway, according to sources. Co-founders Vidit Aatrey and Sanjeev Barnwal, listed as promoters, also plan to partially pare their holdings.
The updated submission follows a confidential filing made in July, which had already earmarked $500 million for the primary issue.
According to data from Tracxn, Elevation Capital holds a 14 per cent stake in Meesho, while Peak XV Partners owns 13.2 per cent. Other major investors include SoftBank, Prosus, WestBridge Capital, and Fidelity.
Market position and growth outlook
Meesho has emerged as India’s third-largest e-commerce platform, achieving a gross merchandise value (GMV) run rate of $6.2 billion for FY25. As of March 2024, the company was valued at around $3.9 billion, according to Tracxn.
A recent CLSA report projects Meesho to grow at a 26 per cent compound annual growth rate (Cagr) through FY31, as the firm gains market share from incumbent players.
Corporate restructuring and reverse flip
The filing comes after Meesho completed a major corporate restructuring earlier this year. In June, the National Company Law Tribunal (NCLT) approved the company’s plan to relocate its headquarters from Delaware to India, a move known as a “reverse flip”. The firm is reportedly set to pay about $288 million in taxes related to this transition.
IPO momentum builds across startups
A growing number of Indian startups are advancing IPO plans amid improving market sentiment and investor appetite.
Eyewear retailer Lenskart plans to add 450 stores this financial year, its fastest expansion in three years, as it readies for a public listing that could value it at up to $10 billion. The company aims to raise about ₹8,000 crore ($900 million) through its IPO, which could debut before November 12, according to sources.
Meanwhile, stockbroking platform Groww is preparing to launch a ₹7,000-crore IPO as early as next month.
