Bengaluru-based online marketplace Meesho has submitted its updated draft red herring prospectus (UDRHP) to the Securities and Exchange Board of India (SEBI) with plans to raise up to ₹4,250 crore through a new equity issue. This offering includes an offer-for-sale (OFS) of 17.56 crore shares, allowing early investors such as Elevation Capital and Peak XV Partners, among others, an exit opportunity.
Other shareholders involved in the sale include Highway Series 1 (a subdivision of Venture Highway SPVs LLC), Y Combinator Continuity Holdings I LLC, Golden Summit Limited, VH Capital, VH Capital XI, and company promoters Vidit Aatrey and Sanjeev Kumar, along with individual shareholder Man Hay Tam.
Supported by SoftBank, Meesho is set to become India’s first major horizontal e-commerce marketplace to go public, following the initial public offering of the niche player Nykaa in 2021.
The company intends to allocate the net proceeds towards investments in cloud infrastructure, development of artificial intelligence and machine learning technologies, and marketing initiatives through its subsidiary, Meesho Technologies Private Limited. Additionally, part of the funds will be used to explore inorganic growth opportunities and acquisitions, as well as for general corporate needs.
In FY25, Meesho facilitated connections between over 500,000 transacting sellers and approximately 199 million annual transacting users (ATUs), successfully processing 1.8 billion orders throughout the year. The number of ATUs saw a 28 percent year-on-year increase, reaching 213 million for the twelve months ending in June 2025, reflecting the continuous growth in India’s e-commerce sector.
The company reported a net loss of ₹3,942 crore in FY25, primarily attributed to a one-time exceptional item related to reverse flip tax and perquisite tax incurred as part of its transition to a public company structure.
Published on October 19, 2025.
