Meesho Receives Regulatory Approval for Rs.6,600-Crore IPO

Bengaluru-based e-commerce platform Meesho has received regulatory approval for its highly anticipated initial public offering (IPO). The company, founded in 2015 by Vidit Aatrey and Sanjeev Barnwal, is targeting a public market listing in December. Meesho will raise around Rs.4,250 crore through new shares in the IPO, while the remaining funds will come from an offer-for-sale, where existing shareholders sell their stakes to new investors. The company's CEO, Vidit Aatrey, and CTO, Sanjeev Barnwal, will also be selling some of their stakes in the company during the IPO.

Key Takeaways:

• Meesho's IPO is expected to raise around Rs.4,250 crore through new shares, while the remaining funds will come from an offer-for-sale.
• The company's chief executive officer, Vidit Aatrey, and chief technology officer, Sanjeev Barnwal, will sell some of their stakes in the company during the IPO.
• Meesho's logistics arm, Valmo, has emerged as the company's biggest growth driver, handling about 300 million shipments in April-June, outpacing logistics platforms such as Delhivery Ltd.
• The company reported a net loss of Rs.3,941 crore for 2024-25, which it attributed to "one-time IPO related costs, including reverse flip tax and perquisite tax".
• Meesho's other financial metrics showed improvement in FY25, but the exact details were not provided.

Statistics:

• Meesho's logistics arm, Valmo, handled about 300 million shipments in April-June.
• The company reported a net loss of Rs.3,941 crore for 2024-25.
• The IPO is expected to raise over Rs.4,250 crore.

Sources:

• "Hindustan Times"
• "Meesho's updated IPO document, filed with the Securities and Exchange Board of India on Sunday".