Meesho Ltd IPO
E-Commerce/App based Aggregator
Price Band
₹105 – ₹111
Lot Size
135
Minimum Bid Quantity
135
Minimum Investment
₹14985
Issue Size
₹5421.2Cr
Opens
2025-12-03
Closes
2025-12-05
Listing
10-12-2025
Subscription Status
Qualified Institutional Buyers
120.18 x
Non-Institutional Investor
38.07 x
Retail Individual Investor
18.41 x
Total
78.88 x
IPO Details
Issue Type
EQUITY
Face Value
₹1
Tick Size
1
ISIN
INE0VDM01015
Pre-Apply Available
No
Daily Bidding Time
10:00:00 - 17:00:00
About the Company
Meesho is a technology-based e-commerce platform in India that connects four main stakeholders – consumers, sellers, logistics partners, and content creators. The platform caters to a wide range of consumers across the country and generates revenue primarily through services offered to sellers. The company operates through two business segments: Marketplace and New Initiatives. Marketplace is a technology-driven platform that links the four aforementioned stakeholders. Revenue from the Marketplace segment mainly comes from seller services such as delivery and return logistics, advertising solutions, and access to business insights. New initiatives include a cost-efficient local logistics network for daily essentials and a digital financial services platform. Use of proceeds: The IPO consists of both a fresh issue of shares and an offer for sale (OFS). Proceeds from the OFS will go to the respective selling shareholders, whereas the net proceeds from the fresh issue will be utilised for the following purposes: Investment in cloud infrastructure through Meesho Technologies Private Limited (MTPL), the company’s subsidiary - Rs 1,390 crore. Payment of salaries for existing and newly hired employees in the machine learning (ML), artificial intelligence (AI), and technology teams of MTPL, related to ongoing AI and technology development - Rs 480 crore. Investment in MTPL for expenses related to marketing and brand development activities - Rs 1,020 crore Funding for inorganic growth through acquisitions, strategic initiatives, and other general corporate purposes.
Pros
- • Meesho states that its platform is built on technology that supports scalability, cost efficiency, and improved performance. The company claims to follow a technology-led approach to problem-solving, rather than relying on manual processes. It has integrated Generative Artificial Intelligence (GenAI) tools into its engineering systems, helping developers create software more efficiently, accelerate development, and reduce deployment time. The company states that GenAI features are also embedded across different business functions to enhance productivity and operational scale.
- • Meesho claims that its mobile app is designed to be simple, intuitive, and tailored for Indian users. The app supports 10 languages, including English, Hindi, Tamil, Bengali, and Gujarati, among others. The company states that it aims to make product discovery easier. The app offers a multi-modal search feature, allowing users to search using text, images, or voice inputs, helping capture user intent more accurately.
- • The company claims to have developed an AI model called GeoIndia Large Language Model (LLM), designed to interpret unstructured Indian addresses and convert them into accurate geographic coordinates. Meesho also claims that it has created AI-powered advertising tools that simplify ad campaign management for sellers. These tools automatically display relevant products to the right audience, enabling sellers to advertise effectively without needing advanced skills or large budgets.
Cons
- • The company has incurred losses since its inception in 2015. It recorded losses of Rs 700.72 crore for the period ended September 30, 2025, Rs 3,941.70 crore in FY25, Rs 327.64 crore in FY24, and Rs 1,671.90 crore in FY23. These were driven by substantial investments in technology infrastructure, marketing initiatives, manpower expansion, and one-time exceptional costs related to corporate reorganisation and promoter ESOP exercises.
- • The company reported negative cash flows from operating activities amounting to Rs 850.64 crore in the period ended September 30, 2025, and Rs 2,308.19 crore in FY23. This was primarily due to one-time cash outflows linked to reorganisation activities, including income tax payments related to promoter ESOP exercises and vendor-related settlements. While some years reflected positive operating cash flows, the presence of recurring losses and periods of cash outflow indicates continued pressure on liquidity. If the company is unable to generate sufficient revenue or manage expenses effectively, it may continue to face losses and negative cash flows. This could require it to raise additional finances, which would weigh on its overall financial condition and business operations.
- • Although Meesho’s customer base has been growing, there is no certainty that this trend will continue. Customers may switch to other platforms that offer similar products at better prices. A decline in customer numbers could also lead to fewer sellers on the platform, which would reduce the range of available products and make the platform less attractive. Lower customer engagement or retention may require the company to invest more in marketing and promotions, which could negatively impact its revenue, cash flow, and overall profitability.
Get real-time IPO alerts on WhatsApp
Opening reminders • Subscription updates • GMP alerts • Allotment results
Start WhatsApp Alerts