Meesho Limited has announced that its initial public offering (IPO) will open for subscription on December 3, 2025. The price band for the shares is set at ₹105 to ₹111, which gives the IPO a total size of ₹5,421 crore and a valuation of approximately $5.6 billion at the upper end of the range.
The offering includes a fresh issue of ₹4,250 crore, along with a sale of up to 10.55 crore shares by existing shareholders. Meesho, which asserts it is India’s largest e-commerce platform by order volumes with 230 million annual transacting users, intends to utilize the IPO proceeds for enhancing artificial intelligence infrastructure, customer acquisition, and exploring potential inorganic growth opportunities.
Sanjeev Kumar, Whole-Time Director and Chief Technology Officer, emphasized the importance of artificial intelligence in the company’s operations. “A big chunk is going to go in AI talent as well as infrastructure,” Kumar stated in an interview with businessline. He pointed out that the app’s feed is personalized for every user, showcasing the role of AI in enhancing customer experience.
The company maintains an asset-light operational model, notably through its logistics arm, Valmo, which connects independent logistics partners rather than owning warehouses or delivery vehicles. With a workforce of approximately 2,000 employees, 57% are in technology and product roles, which is significantly lower compared to competitors.
In fiscal year 2025, Meesho reported operating free cash flow of ₹600 crore, reaching a total free cash flow of ₹1,000 crore when interest income is included. “Nobody else, no other listed e-commerce company in India is able to generate this kind of cash,” remarked Barnwal.
The platform witnessed significant growth recently, with order volumes increasing by 53% and net merchandise value (NMV) rising by 44% in the first half of fiscal year 2026. A predominant portion of its user base consists of customers from tier-2 and tier-3 cities, with 88% of users coming from areas beyond the top eight cities. The average order value stands at approximately ₹260, which is around 70% lower than the e-commerce sector average.
Kumar highlighted the potential for further customer acquisition, noting the opportunity to tap into the growing WhatsApp user base, which ranges from 234 million to 800 million users. The platform operates on a zero-commission model for sellers, with around 700,000 sellers transacting in the last year and experiencing a 17% annual growth. The company generates revenue primarily from logistics fulfillment charges and advertising, with a take rate of about 28-30% of NMV.
Meesho’s content commerce initiative, launched two years ago, has developed a network of 50,000 influencers who are generating consistent income, resulting in nearly one million videos that contributed to sales over the past year. The firm views this initiative as a crucial growth driver, drawing inspiration from similar trends noted in emerging markets such as China and Southeast Asia.
Regarding the IPO’s valuation, Kumar commented, “When we started the IPO process, we met a lot of institutional investors. The feedback we received from investment bankers suggested that this is the price band where you’ll attract the right long-term shareholders for the company.”
The bidding for anchor investors is set for December 2, with the offering closing on December 5. The minimum bid lot is 135 shares. The book-running lead managers for the IPO include Kotak Mahindra Capital, JP Morgan India, Morgan Stanley India, Axis Capital, and Citigroup Global Markets India.
Published on November 28, 2025.
