Due to costs associated with moving its base from the US to India, Meesho’s net loss for FY25 increased from Rs 305 crore to Rs 3,941 crore. Meesho suffered a net loss of Rs 289 crore in the absence of the extraordinary item.
As the newest modern company seeking to access the public markets to raise new capital, e-commerce platform Meesho has submitted its revised draft red herring prospectus (UDRHP) to the Securities and Exchange Board of India (SEBI) and obtained regulatory approvals to begin its initial public offering (IPO).
What is Meesho’s initial public offering (IPO) raising?
The business plans to raise around $480 million (Rs 4,250 crore) via a new share offering. The offer for sale (OFS) component would add an additional $250–300 million (Rs 2,200–2,600 crore), bringing the overall IPO size to approximately $700–800 million (Rs 6,500–7,000 crore).
It will utilize the money for basic business purposes, brand development, and technology expenses.
What price will Meesho fetch when it goes public?
After another 30 to 45 days of book building, the business will undertake its initial public offering (IPO) and establish its value. However, during their first public offering (IPO), corporations usually dilute by 10%, which equates to a value of $7-8 billion.
That is a little less than the $10 billion value Meesho had originally sought, which should leave some cash available for potential new retail investors.
In the IPO of Meesho, who is selling?
Meesho’s early investors, including Y Combinator, Elevation Capital, Venture Highway (now a part of General Catalyst), Peak XV Partners, and others, will sell Meesho shares as part of the OFS.
As part of the OFS, promoters Vidit Aatrey and Sanjeev Barnwal will also sell shares.
Along with an increasing number of CEOs, Aatrey and Barnwal are part of the new class of entrepreneurs who are choosing to be labeled as promoters.
Has Meesho made money?
According to the most recent financial report card, Meesho has not yet made a profit. In FY24, the firm made Rs 7,615 crore in sales and lost Rs 305 crore.
Due to costs associated with moving its base from Delaware, USA, to India, its losses increased in FY25. In FY25, the net loss increased from Rs 305 crore to Rs 3,941 crore.
In FY25, its losses before taxes and unusual items, excluding the exceptional item, were Rs 108 crore. Meesho’s net loss during the first quarter of FY26 was Rs 289 crore.
Growth is still the company’s top priority, and it will remain so for the next fourth quarter.