Meesho IPO: Ecommerce platform files updated draft papers with SEBI

E-commerce platform Meesho has filed its updated Draft Red Herring Prospectus (UDRHP) with Securities and Exchange Board of India (SEBI) for its upcoming initial public offering (IPO). The proposed issue will comprise a fresh issue of equity shares worth ₹4,250 crore and an offer for sale (OFS) of up to 17.57 crore shares by existing investors and promoters.

The OFS will include shares offloaded by major investors such as Elevation Capital, Peak XV Partners, Y Combinator, Golden Summit, Venture Highway, and Meesho co-founders Vidit Aatrey and Sanjeev Kumar.

According to the revised DRHP, the proceeds from the fresh issue will be utilised to fund cloud infrastructure, AI and technology development, marketing and brand initiatives, and inorganic growth opportunities, apart from general corporate purposes.

In FY25, Meesho connected over five lakh sellers with 199 million users, facilitating around 1.8 billion orders. The annual transacting users for the platform grew 28%, while its Net Merchandise Value (NMV) rose 29% year-on-year to ₹29,988 crore in FY25 and 36% in the first quarter of FY26, per the revised DRHP.

Meesho also turned free cash flow positive in FY25, generating ₹1,032 crore, but it posted a net loss for the year at ₹3,942 crore, due to one-time exceptional item.

Kotak Mahindra Capital, JP Morgan India, Morgan Stanley India, Axis Capital, and Citigroup Global Markets India are acting as the book-running lead managers for the IPO.

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