Bengaluru-based e-commerce unicorn Meesho has received the green light from the Securities and Exchange Board of India (SEBI) to move forward with its highly anticipated Initial Public Offering (IPO). The company has already filed its Draft Red Herring Prospectus (DRHP), setting the stage for one of the biggest public listings in India’s startup space this year.
This marks a major milestone for Meesho. which has evolved from small social commerce startup into one of India’s fastest-growing online retail platforms. connecting millions of small sellers with customers across the country.
IPO Structure
Meesho’s IPO is expected to raise around $800 million in total. A fresh issue of $480 million will involve newly issued shares. An Offer for Sale (OFS) worth $300 million will allow existing investors and company founders to partially exit.
The company plans to use the proceeds for brand promotion, technological upgrades, and general corporate purposes. This move should help Meesho improve operations, expand its customer base, and boost brand visibility in urban and rural markets.
Analysts say this capital could give Meesho an edge over e-commerce giants like Flipkart and Amazon. The company focuses on affordability and accessibility for India’s Tier-2 and Tier-3 cities.
Timeline and Expected Valuation
According to sources familiar with the process, the book-building phase of the IPO will continue for around 30 to 40 days. Once completed, Meesho will finalize its issue price, valuation, and listing dates.
Generally, Indian startups sell around 10% of their equity in an IPO. Based on that benchmark, Meesho’s valuation is expected to be around 8 Million, positioning it among the top Indian tech companies preparing to go public.
This IPO will be closely watched by market participants, as it will provide insights into investor sentiment toward growth-focused tech startups amid changing market conditions.
Financial Performance
In FY2025, Meesho reported a loss of approximately ₹108 crore. Q1 FY2026 results showed a wider loss of about ₹289 crore. Despite these figures, the company has maintained that its current focus is on long-term growth, market expansion, and customer acquisition, rather than short-term profitability.
Meesho’s leadership believes that increasing order volume. improving seller retention, and building a stronger logistics network will eventually lead to profitability in the next few years.
Industry experts note that Meesho’s strategy mirrors the approach of global tech firms that prioritize scale and user growth before shifting their focus to profits. The company’s continued investments in technology, product innovation, and seller support are seen as steps toward building sustainable profitability in the future.
Founders and Early Investors to Offload Stakes
As part of the Offer for Sale, some of Meesho’s early backers and founders will sell a portion of their shares. This partial exit is common in startup IPOs, allowing early investors to realize some returns while introducing new institutional and retail investors to the company’s equity base.
The move also signals confidence in the platform’s long-term potential, as most existing investors are expected to retain significant stakes even after the IPO.
About Meesho Success Story
Founded in 2015 by Vidit Aatrey and Sanjeev Barnwal, Meesho started as a social commerce platform that enabled small entrepreneurs — especially women and micro-sellers — to sell products through WhatsApp and Facebook. Over time, the company evolved into a full-fledged e-commerce marketplace offering a wide range of affordable products including fashion, home essentials, and electronics.
Today, Meesho serves over 150 million active users and partners with more than 1.3 million sellers across India. Its focus on affordability and low commission fees has made it a preferred platform for small businesses looking to go digital.
A Landmark IPO for India’s Startup Ecosystem
Meesho’s IPO approval is being seen as a significant boost for India’s growing startup ecosystem. After listings of Zomato, Nykaa, and Paytm, Meesho’s public debut is expected to reignite investor interest in Indian tech companies.
The success of IPO could pave the way for other startups planning to go public in 2025–26, potentially signaling new wave of confidence in India’s digital economy.
With SEBI’s nod in place, the next few months will be crucial for Meesho as it works on finalizing its valuation, marketing the issue to investors, and preparing for blockbuster debut on stock exchanges.