Meesho Files Updated DRHP, To Raise INR 4,250 Cr Via Fresh Issue

SUMMARY

The Softbank-backed giant’s public offer will also comprise an OFS component of 17.56 Cr shares, which will see participation from Elevation Capital, Peak XV Partners and the founders

Ahead of filing its red herring prospectus (RHP), the startup also plans to raise up to INR 850 Cr as part of a pre-IPO placement round

Meesho’s operating revenue rose 23% YoY to INR 9,389 Cr in FY25, while losses bloated nearly 12X YoY to INR 3,914.7 Cr, primarily due to tax liabilities related to reverse flipping

Ecommerce unicorn Meesho has filed its updated draft red herring prospectus (DRHP) with market regulator Securities and Exchange Board of India (SEBI).

The Softbank-backed giant’s public offer will comprise a fresh issue of shares worth INR 4,250 Cr ( nearly $483 Mn) and an offer-for-sale (OFS) component of 17.56 Cr shares (17,56,96,602 to be precise).

As part of the OFS, the startup’s existing backers, including Elevation Capital, Peak XV Partners, Venture Highway and others, will offload their stakes. Meesho’s founders Vidit Aatrey and Sanjeev Kumar will also sell 1.1 Cr equity shares each during the OFS.

Ahead of filing its red herring prospectus (RHP), the startup also plans to raise up to INR 850 Cr as part of a pre-IPO placement round. The amount raised during the pre-IPO round will be reduced from the fresh issue.

The startup plans to utilise the fresh proceeds from the IPO for:

Invest up to INR 1,390 Cr towards cloud infrastructure for Meesho Technologies Private Limited
Use INR 480 Cr for payment of salaries for its existing and replacement hires for the machine learning, AI and technology teams to shore up its tech stack
Infuse INR 1,020 Cr in Meesho Technologies Private Limited for marketing and brand initiatives
Funding inorganic growth through acquisitions and other strategic initiatives, and for general corporate purposes

On the financial front, the startup saw its operating revenue jump 23% to INR 9,389 Cr in the fiscal year 2024-25 (FY25) compared to INR 7,615 Cr a year ago. In the first three months (3M) of FY26, the startup reported an operating revenue of INR 2,503.8 Cr.

Meanwhile, the commerce major’s total expense rose to INR 10,009.3 Cr in FY25, a 24% jump from INR 8,173.5 Cr a year ago. In 3M FY26, the startup’s total expenditure stood at INR 2,777.6 Cr.

Meesho’s net loss soared nearly 12X to INR 3,914.7 Cr in FY25 as against INR 327.6 Cr in FY24, primarily due to one-time exceptional items, including reverse flip tax and perquisite tax which were necessary for the company’s transition to a public structure. The reverse flip expenses alone cost the company INR 3,883 Cr. Excluding this, the startup’s loss stood at INR 108 Cr.