The Indus Zone Tech Desk | India’s homegrown e-commerce platform Meesho is gearing up for one of the most anticipated Initial Public Offerings (IPO) in the Indian startup ecosystem. The company has entered its book-building phase, which is expected to take 30 to 45 more days before the official IPO launch.
Once the process is complete, Meesho will decide its final valuation and the exact price band for its shares. Market experts expect the company to dilute around 10 percent of its equity during the IPO — translating into a potential valuation of $7–8 billion.
A Slightly Lower Valuation Than Expected
Earlier reports suggested that Meesho was aiming for a $10 billion valuation. However, the latest estimates indicate a slightly lower figure. Analysts believe this adjustment is strategic — allowing room for retail investors to gain from future growth.
Leaving “money on the table” is a common practice among promising startups, as it builds investor confidence and ensures healthy listing gains. Considering Meesho’s strong market presence and loyal user base, this approach could prove beneficial for both the company and its new investors.
Who Will Sell Shares in Meesho’s IPO?
The Meesho IPO will include an Offer for Sale (OFS), where several of the company’s early backers will sell part of their holdings. Among the key investors planning to offload shares are:
Peak XV Partners (formerly Sequoia Capital India)
Elevation Capital
Venture Highway (now part of General Catalyst)
Y Combinator and a few other institutional investors
Alongside these venture capital firms, Meesho’s co-founders Vidit Aatrey and Sanjeev Barnwal — who have been instrumental in building the company from scratch — will also sell a portion of their shares as part of the OFS.
This move is seen as a sign of confidence in the company’s long-term prospects, as both founders will continue to hold a significant stake and play an active leadership role post-listing.
Founders Join the ‘Promoter’ Tag Club
Interestingly, both Aatrey and Barnwal are also among a new wave of Indian startup founders who are embracing the “promoter” tag in their public filings.
Traditionally, startup founders avoided this label, as it implied certain regulatory responsibilities under Indian company law. However, the new generation of entrepreneurs — including Meesho’s founders — are choosing to retain control and accountability even after going public.
This shift reflects the maturity of India’s startup ecosystem, where founders are increasingly positioning themselves as long-term business leaders, not just startup innovators.
Meesho’s Financial Health: Losses Widen But Growth Continues
Despite its rapid growth and popularity among small sellers and consumers, Meesho is yet to turn profitable.
According to its financial results for FY24, the company reported a revenue of ₹7,615 crore but also a net loss of ₹305 crore. However, in FY25, its losses increased significantly — reaching ₹3,941 crore.
This jump in losses was mainly due to one-time expenses related to flipping its base from Delaware (US) to India — a process known as “reverse flipping.” This move aligns Meesho with other Indian startups seeking to list domestically rather than overseas.
Without this exceptional cost, the company’s loss before tax and exceptional items was much smaller — ₹108 crore in FY25.
In the first quarter of FY26, Meesho posted a net loss of ₹289 crore, signaling that the company continues to invest heavily in growth and market expansion.
Growth Over Profit: Meesho’s Long-Term Strategy
Meesho’s leadership has made it clear that the company’s focus remains on growth rather than short-term profitability. The platform continues to strengthen its seller network, improve customer experience, and expand its logistics and digital payment ecosystem.
“We are in a growth phase and will continue to invest in strengthening our marketplace. Profitability will come naturally as we scale efficiently,” a company spokesperson recently noted.
Meesho’s model, which allows millions of small sellers — especially women entrepreneurs — to sell directly to customers through social commerce, has made it one of the most inclusive and fast-growing e-commerce players in India.
The company’s strategy revolves around high user engagement, low-cost operations, and digital-first marketing, which have helped it compete effectively against giants like Amazon and Flipkart.
Meeaho’s IPO – India’s New Generation Startup
Meesho’s IPO is not just about one company going public — it’s a test case for India’s new-generation startups that are choosing to list domestically.
A successful listing could:
Boost investor confidence in Indian tech startups.
Encourage other late-stage startups like OYO, Swiggy, and PharmEasy to revisit their IPO plans.
Strengthen India’s position as a global hub for digital-first businesses.
Market watchers believe that Meesho’s IPO could open the floodgates for more tech and consumer internet IPOs in 2026, signaling renewed investor interest in India’s startup scene.
Why Investors Are Watching Closely
Investors are eyeing Meesho’s IPO with optimism for several reasons:
- Large User Base: Over 150 million active users and millions of registered sellers.
- Social Commerce Advantage: Strong foothold in Tier 2 and Tier 3 cities where online retail is booming.
- Capital Efficiency: Compared to other e-commerce giants, Meesho operates with relatively lower expenses.
- Market Sentiment: India’s equity markets have shown strong appetite for digital companies with sustainable growth models.
If priced correctly, Meesho’s IPO could generate substantial demand from both retail and institutional investors.
Challenges Ahead for Meesho
However, challenges remain. The e-commerce space in India is highly competitive, with major players offering deep discounts and fast delivery services. Meesho must also balance rising marketing costs and operational efficiency as it continues to scale.
Additionally, profitability pressure from investors post-listing could push the company to fine-tune its pricing and revenue strategies. Yet, given its strong brand and innovative business model, analysts believe Meesho is well-positioned for long-term success.
Conclusion: A Defining Moment for Meesho and India’s Startup Ecosystem
As Meesho moves closer to its IPO launch in late 2025 or early 2026, excitement is building across India’s business and investor community.
With a potential valuation of $7–8 billion, a strong network of loyal users, and a commitment to empowering small entrepreneurs, Meesho’s journey from a startup idea to a soon-to-be-listed company reflects India’s evolving digital economy.
If executed successfully, this IPO could become one of India’s landmark startup listings, setting new standards for transparency, innovation, and inclusive growth in the e-commerce sector.
