Meesho Picks Banks for $1 Billion IPO, Targets $10 Billion Valuation

As per news reports, Meesho, the e-commerce company, has selected Morgan Stanley, Kotak Mahindra Capital, and Citi as advisors for its upcoming Initial Public Offering (IPO), which is expected to raise around $1 billion. Discussions are also underway to potentially include JP Morgan in the syndicate.

Timeline and Filing 

The e-commerce company is expected to file its draft IPO documents in the coming weeks. If timelines hold, Meesho is likely to go public around September–October of 2025, close to the Diwali period.

Company Restructuring 

Before moving forward with the listing, Meesho needs to shift its headquarters from Delaware, US, to India. This reverse merger process is in its final stages. According to earlier reports, the tax impact of this transition is expected to be approximately $300 million.

Revenue and Profit Trends

Meesho has reported steady growth in revenue and profitability. In FY22, revenue stood at ₹3,240 crore, rising to ₹5,735 crore in FY23, and further to ₹7,615 crore in FY24. Net loss has declined sharply, from ₹3,248 crore in FY22 to ₹305 crore in FY24.

In 2024, Meesho reported 175 million annual transacting users, up 25% from 140 million a year earlier. The platform also saw a 35% increase in annual orders. The company attributed the growth to demand for affordable products in categories like fashion, beauty, and home essentials.

Valuation Increase Since Last Round

If Meesho lists at a $10 billion valuation, it will mark a 2.5x increase from its earlier valuation of $3.9 billion in 2024.

The company is backed by SoftBank, Meta, Prosus, Elevation Capital, and DST Partners. Two months ago, it received fresh capital from Think Investments, Mars Growth Capital, and Tiger Global.

Conclusion 

If the listing goes through in 2024, Meesho would go public ahead of Flipkart, which is still waiting for a timeline decision from parent company Walmart.

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