Meesho is set to become the first horizontal e-commerce platform to go public in India, ahead of rivals Flipkart and Amazon. The company has filed its updated red herring prospectus (RHP) with the Securities and Exchange Board of India (SEBI), seeking to raise Rs 5,421 crore through an initial public offering (IPO).
According to the updated prospectus, the IPO will comprise a fresh issue of equity shares aggregating up to Rs 4,250 crore, and an offer for sale (OFS) component of up to 10.55 crore shares, estimated to be valued at Rs 1,171 crore at the upper price limit. Notably, Meesho has reduced the OFS size from 17.57 crore shares earlier.
The company has fixed its price band at Rs 105–111 per share, valuing it at roughly Rs 50,096 crore ($5.6 billion) at the upper price band.
Early Backers Set to Make Bumper Returns
Elevation Capital, Peak XV Partners, and Y Combinator, collectively holding over 26% stake in Meesho, are set to earn stellar returns from the listing.
Elevation Capital owns 57.94 crore shares, equivalent to a 13.6% stake. These shares were acquired at an average cost of Rs 3.04 per share. At the upper end of the price band, its holding is valued at Rs 6,431 crore, compared with Rs 176 crore before the price announcement, translating into a gain of more than 3,550%.
Similarly, Peak XV Partners owns 48.12 crore shares, amounting to an 11.3% stake in the company, acquired at a weighted average cost of Rs 4.29 per share. This stake is now valued at Rs 5,341 crore, up from Rs 206 crore previously, marking a jump of more than 2,490%.
Y Combinator, which holds 5.2 crore shares, is also set for major gains. Its holding—acquired at an average cost of Rs 1.02 per share, is now valued at Rs 577 crore, translating into returns of over 11,440%.
The OFS will also see promoters Vidit Aatrey and Sanjeev Kumar offload some of their shares. The co-founders owned a combined 18.5% stake in the company. At the upper price limit, their combined stake is now valued at Rs 8,748 crore. They had acquired these shares for a little under Rs 3.5 crore.
Financial Report Card & Key Operational Metrics
Meesho reported a narrowing of net loss in the first six months ended September 30, 2025 (H1 FY26) to Rs 700.7 crore, down 72% from Rs 2,512.9 crore posted in the year-ago period.
The improvement in the bottom line came on the back of strong growth in its top line. Operating revenue surged 29% to Rs 5,577.5 crore during the first half of the ongoing fiscal, compared to Rs 4,311.3 crore in H1 FY25.
Net merchandise value jumped over 44% to Rs 19,194 crore during the period under review, from Rs 13,318 crore a year earlier.
In its RHP, the company acknowledged that it has been loss-making since its inception in 2015. During H1 FY26, it also reported negative cash flows.
If we are unable to generate adequate revenue and manage our cash flows and expenses, we may continue to incur losses…Our future growth and…
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