Indian e-commerce platform Meesho has officially launched its much-anticipated initial public offering (IPO), seeking to raise ₹5,421 crore. Backed by SoftBank, the company is positioning itself as a major player in India’s rapidly expanding online retail market, even as questions linger about profitability.
IPO Details:
- The IPO opened today with a price band of ₹105 - 111 per share.
- The issue comprises both a fresh issue of shares and an offer for sale by existing investors.
- At the upper end of the price band, Meesho’s valuation stands at nearly ₹50,096 crore.
- The subscription window runs from December 3 to December 5, with listing scheduled for December 10.
Anchor Investor Response:
On December 2, Meesho raised ₹2,439 crore from anchor investors, signaling strong institutional interest. Notable participants include SBI Mutual Fund, Fidelity, BlackRock, GIC, Tiger Global, Goldman Sachs, and Morgan Stanley. Analysts view this as a vote of confidence in Meesho’s long-term growth potential.
Business Performance:
Meesho has built its reputation by enabling small businesses and individual entrepreneurs to sell online, particularly in India’s tier-2 and tier-3 cities. The platform now handles 1.8 billion annual transactions and recently reported positive free cash flows.
However, challenges remain. In the first half of FY26, Meesho posted adjusted EBITDA losses of ₹5,518 crore, with contribution margins slipping to 3.8% from 5.6% in FY24. Heavy spending on marketing and technology continues to weigh on profitability.
Market Context:
Meesho’s IPO comes at a time when India’s e-commerce sector is booming, but competition is fierce. Rivals Amazon and Flipkart dominate the market, forcing Meesho to differentiate through affordability and seller-focused initiatives.
Industry experts suggest that Meesho’s IPO could serve as a test case for India’s next wave of tech listings, following the public market debuts of Nykaa and Zomato.
Investor Outlook:
While institutional investors have shown enthusiasm, retail investors are expected to weigh risks carefully. The grey market premium (GMP) indicates moderate optimism, with unlisted shares trading at a premium ahead of listing.
Analysts caution that Meesho’s path to profitability will be closely scrutinized, making this IPO both an opportunity and a challenge for India’s startup ecosystem.
