Meesho: At a Glance
Established in 2015, Meesho has rapidly evolved into India's largest e-commerce marketplace. The company connects buyers, sellers, and logistics partners,
offering a wide array of products at 'Everyday Low Prices'. KFin Technologies acted as the official registrar for the IPO. The IPO opened on December 3, 2025, and is set to close on December 5, 2025. The company’s focus is on providing an accessible and affordable shopping experience, particularly in Tier-2 and Tier-3 cities across India. With 213.17 million active users and over 575,465 active sellers as of 2025, Meesho has a vast network. Meesho's innovative approach involves AI/ML technology, enhancing user experience and streamlining operations.
IPO Subscription Status
The Meesho IPO experienced strong investor participation on its opening day. By Day 2, the IPO had received significant oversubscription. Specifically, the total subscription reached 3.02 times, with Retail Individual Investors (RIIs) subscribing 5.34 times, Non-Institutional Investors (NIIs) at 3.23 times, and Qualified Institutional Buyers (QIBs) at 2.13 times. By the second day, the numbers increased, with the IPO being subscribed 3.48 times. This included 6.24 times for RIIs, 4.27 times for NIIs, and 2.13 times for QIBs. The grey market premium (GMP) indicated an estimated listing price of ₹156 per share, implying a potential gain of 40.54% per share. By the end of Day 2, the total subscription had reached 5.17 times, with RIIs at 7.70 times, NIIs at 6.32 times, and QIBs at 3.72 times. These figures underline the high investor interest in Meesho's market debut.
Key Financial Details
In terms of financials, Meesho's revenue for FY25 was ₹9,389.9 crore, reflecting a 23.3% year-on-year increase. The company's EBITDA losses have been narrowing over the last two years. While Meesho still reported losses with an adjusted FY25 loss of ₹2,595.3 crore, the growth trajectory remains positive. The company's revenue rose from ₹5,735 crore in FY23 to ₹9,390 crore in FY25. However, net losses widened to ₹3,942 crore. Despite these losses, ICICI Direct noted that the company’s strong operating leverage and improving unit economics provide comfort to investors. The financial performance reflects a focus on growth and market expansion.
IPO Details & Dates
The IPO had a price band set at ₹105–111 per equity share, with a face value of ₹10 each and a lot size of 135 shares. The Meesho IPO opened for public subscription on Wednesday, December 3, 2025. The IPO was scheduled to close on Friday, December 5, 2025. Share allotment was expected on Monday, December 8, 2025, and the stock was expected to list on the BSE and NSE on Wednesday, December 10, 2025. The total issue size was ₹5,421.20 crore. This included a fresh issue of ₹4,250 crore and an offer-for-sale (OFS) of ₹1,171.20 crore. The retail investors needed a minimum investment of ₹14,985 at the upper price band.
Company Strengths
Meesho showcases several strengths in its business model. The platform is built on multiple self-reinforcing flywheels, reinforcing growth and creating high entry barriers. The company has a technology-first mindset, focusing on AI-driven solutions. Meesho is dedicated to delivering ‘everyday low prices’, and building a trusted layer among stakeholders. Its ability to scale in a capital-efficient manner is another key strength. Meesho’s AI-driven infrastructure, including the BharatMLStack and GeoIndia LLM, enables hyper-personalization and cost efficiency. The rapid expansion of Valmo significantly reduced fulfilment costs, attracting a large user base.
Risks Involved
Despite its strengths, Meesho faces certain risks. The company’s dependence on cash-on-delivery (CoD) transactions leads to increased risks of cancellations, fraud, and higher operational costs. Intense competition exists in areas such as logistics, seller acquisition, affordability, and product discovery. The high dependence on CoD increases the risks of cancellations and higher operational costs. Maintaining high-quality control across the extensive seller and logistics ecosystem also poses a challenge. The company remains loss-making, and its future relies on converting its current scale into sustainable profits. Moreover, Meesho's valuation, which is roughly 5x FY25 revenues, may appear ambitious to some investors.
Future Prospects
Meesho is looking toward financial services and content commerce as potential verticals. CFO Dhiresh Bansal emphasized that user growth and profitability reinforce each other. The company is exploring new opportunities in the financial services sector, creating a marketplace for both sellers and consumers. Meesho is also developing its content commerce vertical, which could drive future monetization. In FY20 to FY25, organized retail has grown from about 15% of the total India retail market to about 21%. It is projected to reach 32-34% by Fiscal 2030, an opportunity estimated between Rs.39–46 trillion ($462–542 billion). Meesho's focus on technology and innovation is expected to drive its growth.
