Meesho files confidential DRHP for IPO

Meesho, an ecommerce platform that connects a diverse range of products directly from manufacturers to resellers and consumers, filed its confidential Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI). The total issue size is $500 million, which is approximately Rs 4,250 crores. The company’s merchant bankers for the Initial Public Offering (IPO) are Citi, Kotak Mahindra Capital, Morgan Stanley, and Axis Capital.

The company’s revenues increased from ₹3,240 crores in FY22 to ₹5,735 crores in FY23, and ₹7,615 crores in FY24. Net losses decreased significantly from ₹3,251 crores in FY22 to ₹53 crores in FY24 (adjusted losses excluding ESOP costs).

The company’s user base grew from 140 million transacting customers in 2023 to 175 million in 2024, representing a 25% increase. This growth occurred alongside increased e-commerce adoption in tier 2 cities and smaller markets, resulting in a 70% year-over-year increase in orders, particularly in Beauty and Personal Care and Home and Kitchen categories.

Meesho became the first horizontal e-commerce company in India to achieve profitability in FY24, generating positive free cash flow of ₹197 crores for the full year. The platform retained its position as India’s most downloaded shopping app for the fourth consecutive year, with over 210 million downloads in 2024.