IPO Market / Meesho will bring IPO of ₹8,300 crores- valuation may be ₹85,500 crores

Domestic e-commerce platform Meesho may launch an IPO by the end of this year, through which the company plans to raise $1 billion (₹8,300 crores). Meesho will raise this funding at a valuation of $10 billion. The company will file draft documents soon, and listing is likely by September-October.

IPO Market: Domexit e-commerce platform Meesho is planning to launch an Initial Public Offering (IPO) by the end of this year. The company is aiming to raise around $1 billion (about Rs 8,300 crore) through this IPO. Meesho plans to raise this funding at a valuation of $10 billion (about Rs 85,500 crore).

Strong strategy for IPO

The company will file draft documents for the IPO in the coming weeks. According to reports, Meesho has appointed Morgan Stanley, Kotak Mahindra Capital and Citi as its IPO advisors to guide the process. Its listing on the stock exchange is likely to happen between September-October 2024.

Funding and investor interest

Meesho has so far raised a total of Rs 4,705 crore in funding in two rounds. In early 2024, the company received funding of $250-270 million (about Rs 2,300 crore) from investors like Tiger Global, Think Investments and Mars Growth Capital. In this round, Meesho's valuation was $3.9-4 billion (about Rs 34,242 crore).

Rapidly growing business and reduction in losses

Meesho recorded a revenue of Rs 7,615 crore in FY 2023-24, up 33% over the previous year. The company's total revenue in FY 2022-23 was Rs 5,735 crore. Most notably, Meesho's net loss reduced by 97% from Rs 1,569 crore to just Rs 53 crore. This performance reflects the company's efficient financial management and operational efficiency.

Tremendous growth in customers and orders

By the end of 2024, orders on Meesho's platform grew by 35% year-on-year. The company had 175 million customers, more than half of whom came from tier-4 and small towns. This indicates that Meesho is strengthening its hold in the rural and small town market.

Merger plan with Fashionier Technologies

Meesho has recently applied to the National Company Law Tribunal (NCLT) for a reverse merger of its subsidiary Fashionier Technologies in India with US-based parent entity Meesho Inc. The move is part of the company's global strategy and efforts to make the corporate structure more organized.