Meesho appoints Morgan Stanley, Kotak Mahindra Capital, and Citi as bankers for its $1 billion IPO: Report

Bengaluru-based Meesho is reportedly moving closer to an initial public offering (IPO) aimed at raising $1 billion, according to a report by Moneycontrol.

The company has appointed Morgan Stanley, Kotak Mahindra Capital, and Citi as advisors for the listing process, with bankers suggesting a $10 billion valuation. Previously, the company was valued at $3.9 billion in 2024.

The report said another American investment banker, JPMorgan, will be added to the IPO syndicate if talks materialize.

Meesho, which became a unicorn by catering to small businesses and individual entrepreneurs, is expected to file its draft IPO documents in the coming weeks. If this proceeds as planned, the Vidit Aatrey-led company will debut on Dalal Street during the Diwali festival this year, which falls in the September-October period.

Shifting base back to India

The report noted that Meesho, which has expanded its market share significantly by focusing on Tier 3 cities, must first relocate its headquarters from Delaware to India before moving forward with the IPO.

This process is reportedly in its advanced stages, with the company likely to pay around $300 million in taxes resulting from the reverse merger. Earlier this year, The Economic Times reported that Meesho had filed an application to shift its base from Delaware to India.

Financial performance

The company’s operating revenue rose 33% to Rs 7,615 crore, up from Rs 5,735 crore in the previous fiscal year. Meanwhile, Meesho’s adjusted losses narrowed sharply by 97%, dropping to Rs 53 crore from Rs 1,569 crore in FY23. Meesho’s FY24 results indicate robust growth in user engagement. 

The platform recorded 145 million unique annual transacting users, with a marked increase in order frequency, particularly from non-metro markets.

It reportedly aims for sustained profitability, potentially for a full fiscal year by FY25 or FY26.