SoftBank Maintains Stake as Meesho Launches $606 Million IPO, Pioneering a New Era for Indian E-commerce
Meesho, the Bengaluru-based e-commerce marketplace, is set to become the first major Indian e-commerce company to go public with an initial public offering (IPO) valued at approximately $606 million. While Peak XV Partners (formerly Sequoia Capital India) is reducing its holdings by selling around 17.38 million shares - representing roughly 13% of its stake – SoftBank has opted to remain invested in the company.
Meesho has rapidly gained traction in India by focusing on a low-cost model catering to price-sensitive consumers and small merchants. This strategy has increasingly challenged established players like Amazon and Flipkart. The company differentiates itself through a commission-light approach, primarily generating revenue from logistics fees, advertising, and other services, alongside commissions from its Meesho Mall channel.
Recent financial disclosures reveal significant growth, with revenue from operations reaching ₹55.78 billion (approximately $624.0 million) for the six months ending September 30, a rise from ₹43.11 billion (around $482.0 million) the previous year. Net Merchandise Value also increased by 44% year-over-year to ₹191.94 billion (roughly $2.15 billion). However, Meesho’s losses widened during the same period, reporting a restated loss before tax of ₹4.33 billion (around $48.4 million) compared to ₹0.24 billion (about $2.7 million) a year earlier.
The platform boasts a significant user base, recording 234.20 million transacting users - individuals who made at least one purchase – in the last 12 months. It also supports a network of 706,471 annual transacting sellers, defined as those receiving at least one order within the year. Meesho further leverages a network of over 50,000 active content creators who drive product discovery through user-generated content, resulting in at least one placed order through their channels over the past year.
Meesho positions itself as a “value-focused” platform, contrasting with the “convenience-led” approach of Amazon and Flipkart. The company draws parallels to accomplished value marketplaces globally, including Pinduoduo in China, Shopee in Southeast asia, and Mercado Libre in Latin America. Founder Vidit Aatrey emphasized the appeal of a broad selection coupled with affordability as key drivers of customer loyalty.
the IPO is expected to enhance Meesho’s ability to attract top talent and bolster confidence within its ecosystem, according to CFO Dhiresh Bansal. A public listing is anticipated to strengthen the company’s brand recognition among potential employees,including those from larger tech firms,and reinforce governance standards for consumers,sellers,and logistics partners.
The IPO opens for public subscription on December 3, with an anchor book scheduled for December 2. The offering is allocated with 75% reserved for qualified institutional buyers, 10% for retail investors, and 15% for non-institutional investors. SoftBank declined to comment on the IPO.