Meesho IPO Set to Open on Dec 3: Key Risks You Should Know

Meesho Limited has announced an initial public offering (IPO) with a book-building size of ₹5,421.20 crores. The IPO comprises:

• Fresh Issue: 38.29 crore shares aggregating to ₹4,250.00 crores.
• Offer for Sale (OFS): 10.55 crore shares aggregating to ₹1,171.20 crores.

MeeshoIPO is open for subscription from December 3, 2025, to December 5, 2025. Allotment is expected to be finalised on December 8, 2025, with a tentative listing on BSE and NSE on December 10, 2025. The price band is set at ₹105 to ₹111 per share, with a lot size of 135 shares. Retail investors will need a minimum investment of ₹14,985 based on the upper price.

Use of IPO Proceeds

Proceeds from the IPO are intended for:

1. Cloud Infrastructure Investment – For MTPL, Meesho’s subsidiary.
2. Technology and Talent Development – Salaries for existing and new hires in the Machine Learning, AI, and technology teams at MTPL.
3. Marketing and Brand Initiatives – Expenditure through MTPL to strengthen brand presence.
4. Strategic Growth – Funding inorganic growth through acquisitions, other strategic initiatives, and general corporate purposes.

Key Risks You Should Know

Meesho faces several risks that investors should consider:

• Historical Losses: The company has incurred losses since its inception in 2015, although it was cash-flow positive for the six months ended September 30, 2024, and Fiscals 2025 and 2024.
• Consumer Retention Risk: Failure to attract and retain consumers may adversely impact business, financial condition, cash flows, and results of operations.
• Seller Retention Risk: Failure to attract and retain sellers may negatively affect operations and financial performance.
• Logistics Dependence: Products are delivered through third-party logistics partners via Meesho’s technology platform, Valmo, or end-to-end logistics partners. Five end-to-end partners were engaged during the six months ended September 30, 2025.
• Cash on Delivery (CoD) Exposure: A significant portion of orders are paid via CoD, accounting for 72.00% of shipped orders in H1 FY2026, with historical percentages of 78.51%, 76.95%, 85.39%, and 88.71% in previous periods.
• Competition: Intense competition may lead to loss of market share, impacting financials and business performance.

Also Read: Upcoming IPOs This Week (Dec 1- Dec 5): 3 Mainboard IPO, Including Meesho IPO and 11 SME Set to Open

About Meesho Limited

Incorporated in 2015, Meesho Limited is a multi-sided technology platform driving e-commerce in India by connecting consumers, sellers, logistics partners, and content creators. The company operates its marketplace under the Meesho brand, providing affordable products to consumers while enabling sellers to scale their businesses at a low cost.

Marketplace

A technology-driven platform facilitating transactions between consumers, sellers, logistics partners, and content creators. Revenue primarily comes from services provided to sellers, including order fulfillment, advertising, and seller analytics.

New Initiatives

This segment includes:

• A low-cost local logistics network for daily essentials.
• A digital financial services platform.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.