Meesho files confidential DRHP with SEBI to raise Rs 4,250 crore in primary capital

Meesho, the budget-friendly e-commerce platform known for its strong presence in India’s value-conscious markets, has confidentially filed a draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI), as it prepares for a public listing. The company is reportedly aiming to raise Rs 4,250 crore (approximately $500 million) through a primary issue of equity shares.

According to multiple reports, the total IPO size is expected to reach approximately Rs 8,500 crore ($1 billion), comprising both fresh issuance and an offer for sale (OFS) component. While the exact details of the OFS portion remain undisclosed, some early investors are expected to make partial exits.

The confidential filing route allows Meesho to test investor appetite and fine-tune its offer before formally entering the public domain. It follows a reverse flip transaction, in which Meesho merged its Delaware-based holding entity with its Indian arm, shifting its headquarters to India. The move, reportedly costing $288 million, is seen as a critical preparatory step toward becoming a publicly traded company.

The IPO push follows a shareholder resolution passed at an Extraordinary General Meeting on June 25, in which Meesho received approval to raise capital through a fresh issue of equity shares.

Additionally, Meesho has officially changed its corporate name from Fashnear Technologies Private Limited to Meesho Private Limited, aligning with its brand identity and strategic direction. The name change was certified by the Ministry of Corporate Affairs on May 13.

To lead its IPO efforts, Meesho has engaged Citi, Kotak Mahindra Capital, Morgan Stanley, and Axis Capital as bankers. While the company has not yet filed its FY2025 financial statements, it reported Rs 7,615 crore in revenue for the fiscal year ended March 2024, marking a 33% year-on-year increase. Adjusted losses were trimmed significantly by 97% to Rs 53 crore.

A review of post-flip filings revealed that Elevation Capital is the largest external shareholder, holding a 14.49% stake. It is followed by Peak XV Partners (13.64%), Prosus (13.14%), and Softbank (9.91%).

Meesho’s confidential DRHP makes it the seventh Indian startup to choose this route in 2025, joining companies such as Shadowfax, PhysicsWallah, Groww, Shiprocket, boAt, and Aequs. In just the past two weeks, firms including Pine Labs, Wakefit, Curefoods, and Shadowfax have filed DRHPs targeting a combined Rs 6,000 crore in primary capital, reflecting renewed momentum in India’s startup IPO pipeline.

Founded in 2015, Meesho has gained market share by targeting Tier 2, 3, and smaller Indian cities, positioning itself as a low-cost alternative to more premium e-commerce platforms. This focus has helped it compete against deeper-pocketed rivals such as Amazon and Flipkart, despite entering the market relatively late.