Meesho Gets Board Nod To Raise INR 4,250 Cr Via IPO

SUMMARY

Meesho’s board has approved the company to raise NR 4,250 Cr via fresh issue of shares through its public listing

The board has also reappointed Meesho’s founder Vidit Aatrey as the chairman,MD and CEO of the company

Earlier this week, Meesho shifted its domicile back to India

Ecommerce giant Meesho’s board has approved raising up to INR 4,250 Cr (around $500 Mn) via a fresh issue in its initial public offering (IPO).

As per the company’s regulator filings, the IPO will also consist of an offer for sale (OFS), allowing existing investors to offload shares.

“The proposed offering will include a fresh issue of equity shares aggregating up to INR 4,250 Cr and an offer for sale of equity shares by certain existing shareholders of the company,” the filing added.

Besides, the board also approved the redesignation of Meesho’s founder Vidit Aatrey as the chairman,managing director and chief executive officer of the company.

Earlier this week, Meesho shifted its domicile back to India after receiving approval from the National Company Law Tribunal (NCLT).

Earlier this month, a report claimed that the ecommerce major is looking to file the draft red herring prospectus (DRHP) with the markets regulator SEBI via confidential route.

Since then, Meesho has been taking steps in the direction of its public listing in India. The company also transitioned into a public entity earlier this month, changing its name ‘Meesho Private Limited’ to ‘Meesho Limited’.

Founded in 2015 by IIT alumni Vidit Aatrey and Sanjeev Barnwal, Meesho is India’s third-largest ecommerce platform by GMV. The company counts DST Partners, Tiger Global Management, Peak XV Partners, Elevation Capital, Facebook and Prosus among its investors.

Earlier this month, Meesho’s board also approved a proposal to issue 411.4 Cr bonus shares ahead of the ecommerce major planning to file its DRHP.

Meesho managed to trim its loss by 82% to INR 304.9 Cr in the financial year ended March 31, 2025 from INR 1,675 Cr in FY23. Meanwhile its operating revenue jumped 33% to INR 7,614.9 Cr during the year under review from INR 5,734.5 Cr in FY23.

The development also comes at a time when several startups including Urban Company, Wakefit Pine Labs, Shiprocket, DevX and Capillary Technologies have recently filed DRHPs with market regulator.