Meesho Set for Confidential IPO Filing In Coming Weeks

Days after getting the approval of its board to convert into a public company, ecommerce major Meesho is now set to file its IPO papers in a few weeks via the confidential route. 

As per a report by Bloomberg, the startup would look to raise $700 Mn to $800 Mn from its public offering. The number is slightly lower than the $1 Bn IPO that was speculated previously. 

The report added that discussions about the IPO filing are ongoing and plans could change.

The ecommerce startup has roped in investment bankers Citigroup, Kotak Mahindra Capital and Morgan Stanley for its public offering. However, Meesho is yet to make any public announcement on its IPO plans. 

Inc42 has reached out to Meesho with questions about its IPO timeline. The story would be updated on receiving a response. 

Yesterday, Inc42 reported that Meesho converted into a public company for “increased flexibility in pursuing capital market access and aligning its corporate structure with regulatory expectations applicable to a company proposing to undertake an IPO”. 

Further, in the run up to its IPO, Meesho’s board approved a proposal to issue 411.4 Cr bonus shares of INR 1 each to equity shareholders in the ratio 47:1.  

In December 2024, Meesho’s investor Prosus ascribed a timeline of 18 months to Meesho’s public listing. Besides Meesho, the investor gave a similar timeline for the IPOs of PayU and BlueStone. 

On the financial front, Meesho is yet to divulge its financial numbers for FY25. In FY24, it managed to trim its loss by 82% to INR 304.9 Cr from INR 1,675 Cr in FY23. Operating revenue zoomed 33% to INR 7,614.9 Cr during the year under review from INR 5,734.5 Cr in FY23.

The Rise Of Confidential Startup IPO Filings 

The latest development comes at a time when a number of new-age tech companies are gearing up to hit the bourses this year. Groww, Shiprocket, PhysicsWallah, boAt, Urban Company, Aequs are among such companies eyeing a public listing this year. 

An interesting trend among most of the new-age tech companies looking to go public this year has been them taking the confidential pre-filing route for their DRHPs. Except Urban Company, all aforementioned startups filed their DRHP via the confidential filing route. Meanwhile, Lenskart is also reportedly looking to file its IPO in the coming weeks confidentially. 

For context, SEBI allowed confidential IPO filing in December 2022 to let companies submit their IPO papers without immediately revealing it to the public. The confidential filing is an alternative to the traditional IPO filing process where the DRHP is made public as soon as it is filed with SEBI. 

Among new-age tech companies, Swiggy went public last year after filing its DRHP confidentially. OYO also took the confidential route to file its DRHP earlier but eventually pulled out before getting SEBI nod. 

Speaking about Groww’s confidential IPO filing, 3one4 Capital’s founding partner Pranav Pai told Inc42 earlier that the confidential route allows founders to go to market on their own terms and avoid disruption in the run up to the listing.

“From the VC perspective, we may see specific types of companies opting for this path. In particular, for disruptive tech and IP-based companies in highly competitive sectors, where such early public disclosure may have to be avoided,” he said.