Meesho, the fast-growing e-commerce platform backed by marquee investors such as Prosus, SoftBank, Elevation Capital, and Peak XV, has officially received shareholder approval to raise ₹4,250 crore through a primary share issuance. The move signals the Bengaluru-based company’s intent to go public, joining a wave of high-profile Indian startups eyeing the capital markets.
In this article, we’ll delve into the fundraising plan, the IPO structure, Meesho’s strategy, and how it fits into the broader startup IPO landscape.
Credits: NDTV Profit
A Green Light for Growth
Meesho’s shareholders have given their nod to a substantial capital raise through the primary market. The fresh issue will not only provide the company with additional capital but will also be accompanied by an Offer for Sale (OFS)—a mechanism that allows existing investors to partially or fully exit.
According to regulatory filings with the Ministry of Corporate Affairs, the offer structure will be finalized at the Board’s discretion, and the company is also exploring the option of a private placement to select investors. The final use of proceeds from the fresh issue will be outlined in the offer documents.
Confidential DRHP Filing in Play
The company plans to file a pre-filed draft red herring prospectus (DRHP)—a confidential regulatory document submitted to the Securities and Exchange Board of India (SEBI) before the IPO becomes public.
This pre-filing route, introduced by SEBI in December 2022, allows companies to fine-tune their documents and protect competitive data before making their offer public. The DRHP becomes visible to the public only once the company decides to move ahead with the IPO launch.
With this move, Meesho joins the ranks of firms like Groww, Shiprocket, PhysicsWallah, Indira IVF, and Swiggy, all of which have recently chosen the confidential filing route. The strategy is becoming increasingly popular among Indian unicorns seeking greater control over their IPO narratives.
Shifting Base to India: A Strategic Move
Meesho recently completed the process of shifting its domicile from the US to India, positioning itself more favorably for a public listing in Indian markets. The move mirrors similar efforts by rival Flipkart, which is also preparing to go public in India after a domicile shift from Singapore.
The decision to relocate back to India reflects a broader trend among Indian startups: aligning their corporate structure with domestic market ambitions, regulatory requirements, and investor sentiment.
Leadership Realignment Ahead of IPO
Alongside these developments, Vidit Aatrey, Meesho’s co-founder, has been officially designated as the chairman, managing director, and chief executive officer of the firm. This formal designation not only reinforces investor confidence but also centralizes decision-making as Meesho gears up for public scrutiny.
Aatrey’s leadership has been instrumental in Meesho’s meteoric rise—from a reseller-focused platform to one of the country’s most widely used online shopping destinations, particularly among value-conscious Tier 2 and Tier 3 customers.
IPO Buzz: The Bigger Picture
Meesho’s IPO preparations come at a time of renewed excitement in the Indian startup ecosystem. Following a funding lull in 2023, 2024 has seen several high-growth startups revive their IPO ambitions. With strong digital penetration, robust retail investor participation, and government support, the Indian capital market is proving to be fertile ground for new listings.
Meesho’s upcoming IPO will be closely watched—not just for its scale, but also for how it sets the tone for tech-driven, consumer-focused companies looking to tap India’s public markets.
Credits: Inc 42
Conclusion
Meesho is taking all the proper steps as it prepares for a historic initial public offering (IPO), from reorganizing leadership and gaining shareholder permission to choosing a confidential DRHP and moving its headquarters to India. Meesho appears to be well-positioned to make an impact on the stock exchanges, with a ₹4,250 crore financing plan in place and strategic clarity at the leadership.