Meesho Limited’s initial public offering will open for subscription on December 3, 2025, with a price band of ₹105-111 per equity share, translating into a IPO size of ₹5,421 crore and valuation of around $5.6 billion at the upper end of the price band.
The offer comprises a fresh issue of ₹4,250 crore and an offer for sale of up to 10.55 crore shares by existing shareholders.
The company, which claims to be India’s largest e-commerce platform by order volumes with 230 million annual transacting users, is focusing on three key areas for deployment of IPO proceeds: artificial intelligence infrastructure, customer acquisition, and potential inorganic growth opportunities.
“A big chunk is going to go in AI talent as well as infrastructure,” said Sanjeev Barnwal, Co-founder and Chief Technology Officer, in a conversation with businessline. “The entire platform is powered by technology. If you look at even as simple as when you open the app today, the feed is personalised for every customer with the help of AI”
The company has maintained an asset-light model across its operations, including its logistics arm Valmo, which connects independent logistics partners rather than owning warehouses or delivery vehicles. With approximately 2,000 employees, 57 per cent work in technology and product roles, a significantly lower headcount compared to peers.
The company generated ₹600 crore in operating free cash flow in FY25, with total free cash flow including interest income reaching ₹1,000 crore. “Nobody else, no other listed e-commerce company in India is able to generate this kind of cash,” Barnwal noted.
Volume surge
The platform has accelerated growth in recent quarters, with order volumes growing 53 per cent and net merchandise value (NMV) rising 44 per cent in the first half of FY26. The company serves a predominantly tier-2 and tier-3 customer base, with 88 per cent of users coming from beyond the top eight cities. Average order value stands at approximately ₹260, about 70 per cent lower than the e-commerce average.
“There is large headroom to 234 million to 800 million WhatsApp user base. Eventually, we would want to continue to acquire those customers as soon as possible,” Barnwal said, outlining the company’s growth potential.
The platform operates on a zero-commission model for sellers, with approximately 700,000 sellers transacting in the last 12 months— growing at 17 per cent annually. Revenue comes primarily from logistics fulfillment charges and advertising, with the take rate at approximately 28-30 per cent of NMV. However, specific breakdowns between revenue streams were not disclosed.
Influencer network
Meesho’s content commerce initiative, launched two years ago, now has 50,000 influencers generating consistent income, with close to one million videos generating sales in the past year. The company sees this as a significant growth driver, citing similar trends in emerging markets like China and Southeast Asia.
On the valuation Barnwal said, “When we started an IPO process, we met a lot of institutional investors. And basis that the feedback that we got from investment bankers is that this is the price band where you’ll get the right long term shareholders for the company.”
The anchor investor bidding is scheduled for December 2, with the issue closing on December 5. The minimum bid lot is 135 shares. Book running lead managers include Kotak Mahindra Capital, JP Morgan India, Morgan Stanley India, Axis Capital, and Citigroup Global Markets India.