Highlights
| Issue Size – 4,513,131,000 shares | Issue Open/Close – 03 Dec. / 05 Dec., 2025 |
| Price Band (Rs.) 105– 111 | Issue Size (Rs.) ~ 54,212 mn |
| Face Value (Rs) 1 | Lot Size (shares) 135 |
Meesho Limited (MeL) incorporate in 2015, is a multi-sided technology platform driving e-commerce in India by connecting four key stakeholders — consumers, sellers, logistics partners, and content creators. Company operates its e-commerce marketplace under the brand name Meesho, enabling consumers to access a wide range of affordable products while offering sellers a low-cost platform to grow their businesses.
Its value focused platform is designed to serve all segments of consumers across India by making ecommerce affordable, accessible and engaging. It’s focused on providing ‘everyday low prices’ to consumers. Its technology-first operations, platform scale and efficiency offer low-cost order fulfilment to sellers on Meesho.
MeL has emerged as India’s largest in terms of number of placed orders and annual transacting users among e-commerce players in India. The company saw 1,261 mn placed orders and 234 mn transacting users for Q1FY26.
Out of the total proceeds from the offer, ~Rs. 13,900 mn would go towards capex, ~Rs. 4,800 mn would go towards Employee benefits expense and ~Rs. 10,200 mn would go towards marketing and brand initiatives, ~Rs. 13,600 mn would go towards funding inorganic growth and general corporate purposes. While ~Rs. 11,712 mn would go towards existing selling shareholders of the company.
Key Highlights
- India’s e-commerce market is currently sized at ~Rs. 6 trillion in terms of gross merchandise value (GMV) and is projected to reach Rs. 15–18 trillion, penetrating 12–13 pct of India retail market by FY30, clocking a CAGR of ~26 pct. This growth is supported by several factors – internet adoption, smartphone penetration, low data costs, digital payments, and logistics improvements.
- The company is a leading value-focused e-commerce platform with the largest user base in India with asset-light, capital-efficient model powered by AI and data-driven flywheels and advanced AI-driven personalization and risk management enhancing trust and scale.
- Company has a zero-commission structure enabling sellers to offer low prices profitably and a strong logistics network (Valmo) reducing delivery costs and improving efficiency. MeL is planning to increase its seller base to 10 mn small businesses by FY27 from its current figures of 1.3 mn, reflecting a tenfold expansion.
- Further, MeL plans to deepen its AI capabilities through Meesho AI Labs, focusing on enhancing personalization, product discovery, fulfillment, and AI-driven customer support features, scale new initiatives, such as its low-cost logistics arm, Valmo, expand into content commerce, and introduce financial services for ecosystem participants.
- The company’s core strategies includes (i) Increase consumer base and their transaction frequency by expanding product listings and seller base (ii) Further invest in technology and product development and enhance AI capabilities (iii) Deepen ability to make e-commerce affordable and accessible (iv) Increase cash flow generation by enhancing platform monetization (v) Drive innovation through Horizon 2 Initiatives.
- Sales of the company has grown by 28 pct CAGR in over FY23-25. During FY25 the sales of the company jumped by 23.3 pct YoY to Rs. 93,899 mn. While EBITDA loss widens to Rs. 5,785 mn against EBITDA loss of Rs 4,941 mn. During FY25, the company reported loss of Rs. 39,417 mn, which is higher than loss of Rs. 3,276 mn in FY24.
Key Risk
- Despite improvement, 72 pct of shipped orders in H1FY26 were still CoD-based, compared to 79 pct in H1FY25. CoD success rates (76 pct in H1FY26) remain significantly lower than prepaid success rates (96 pct), increasing logistics costs and return rates. CoD also exposes Meesho to risks of cash pilferage.
- The company has incurred losses since its inception and has experienced periods of negative operating cash flows. Revenue growth and net merchandise value (NMV) have been driven by significant investments in marketing, technology, and manpower, which have increased overall expenses.
- Advertising and promotional expenses increased to Rs 6,062 mn in H1FY26, forming 9.6 pct of total expenses, up from 7.1 pct in H1FY25. Any slowdown in user acquisition or reduction in engagement due to quality issues, refunds, or competition could materially impact GMV and revenue growth.
Financial Performance
| Particulars | FY23 | FY24 | FY25 | H1FY25 | H1FY26 |
| Sales (Rs. mn) | 57,345 | 76,151 | 93,899 | 43,113 | 55,775 |
| EBITDA (Rs. mn) | -18,037 | -4,941 | -5,785 | -2,361 | -6,934 |
| EBITDA Margin % | -31.5% | -6.5% | -6.2% | -5.5% | -12.4% |
| Profit/Loss (Rs. mn) | -16,719 | -3,276 | -39,417 | -25,129 | -7,007 |
| Profit/Loss Margin % | -29.2% | -4.3% | -42.0% | -58.3% | -12.6% |
| Annual Transacting Users | 136.4 | 155.6 | 198.8 | 175.09 | 234.2 |
| NMV – marketplace | 19,233 | 23,241 | 29,988 | 13,318 | 19,194 |
Valuation
Meesho Limited is a Bengaluru based e-commerce marketplace widely known for low-cost products and value-driven shopping. It focuses heavily on small sellers and middle-income households. At the upper end of the price of Rs. 111, the issue quotes P/S of 4.7x on TTM sales. The issue looks fully priced. One can subscribe this issue for listing gains.
Disclaimer: The views shared in blogs are based on personal opinions and do not endorse the company’s views. Investment is a subject matter of solicitation and one should consult a Financial Advisor before making any investment using the app. Making an investment using the app is the investor’s sole decision, and the company or its communication cannot be held responsible for it.
