The online shopping platform Meesho has filed its revised draft red herring prospectus (DHRP) with Securities and Exchange Board of India (SEBI) and received approval for mainboard listing, joining the list of unicorns like Zepto to garner funds from public markets.
The e-commerce site seeks to raise close to Rs 4,250 crore through issuance of shares and Rs 2,200 crore – Rs 2,600 crore via offer for sale (OFS) component, making the IPO size around Rs 6,500 – Rs 7,000 crore. The funds generated will be earmarked for branding, corporate requisites, and covering tech-linked costs.
It is only after the book building gets over that public listing occurs and company’s valuation is brought to light. The soon-to-be listed companies usually liquidate dilute 10 percent during their IPO which translates to a $7-8 billion valuation.
That is slightly lower than the $10 billion valuation Meesho was initially eyeing, likely to leave some money on the table for incoming retail investors.
The company’s backers such as Y Combinator, Peak XV Partners, Elevation Capital, and General Catalyst will be selling their shares as part of its OFS. Promoters, Vidit Aatrey and Sanjeev Barnwal, will also sell shares as part of the OFS. Aatrey and Barnwal are also among the new class of founders who are opting to be tagged as promoters, joining a growing list of executives.
The Bengaluru-headquartered firm recorded a revenue of Rs 7,615 crore in FY24 and a loss of Rs 305 crore. Its losses widened in FY25 after having to switch bases from Delaware, US to India. The net loss recorded in FY25 was recorded at Rs 3.941 crore, higher from Rs 305 crore.
Without the exceptional item, meaning its losses before tax and exceptional items, stood at Rs 108 crore in FY25. In Q1FY26, Meesho’s net loss was Rs 289 crore.
