Meesho IPO: Check the GMP, financial analysis, peer comparison and more

Meesho has launched its Initial Public Offering (IPO), which is a book-built issue of Rs. 5,421.20 crore. The issue comprises a fresh issue of 38.29 crore shares aggregating to Rs. 4,250.00 crore and an offer for sale of 10.55 crore shares aggregating to Rs. 1,171.20 crore with a face value of Rs. 1 each.

Meesho Ltd IPO opens for subscription on December 03, 2025, and closes on December  05, 2025, with the price band set at Rs. 105 to 111 per equity share. Meesho Ltd IPO will list on BSE and NSE, with a tentative listing date fixed as December 10, 2025. 

GMP of On Meesho Ltd IPO

As of December 03, 2025, the shares of Meesho Ltd in the grey market were trading at a 44.14 percent premium. The shares in the Grey Market traded at Rs. 160. This gives it a premium of Rs. 49 per share over the cap price of Rs. 111.

Overview of Meesho Ltd IPO

Meesho Limited, Incorporated 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 by operating under the brand name Meesho, the company enables consumers to access a wide range of affordable products while offering sellers a low-cost platform to grow their businesses.

Meesho operates through two primary business segments. The first, Marketplace, is a technology-driven platform that facilitates transactions between consumers, sellers, logistics partners, and content creators. Revenue from this segment primarily comes from services provided to sellers, such as order fulfilment, advertising, and seller insights. The second segment, New Initiatives, includes a low-cost local logistics network for daily essentials and a digital financial services platform.

The company has demonstrated strong operational growth, with a steady rise in placed orders and a broadening base of transacting users and sellers. For the twelve months ended September 30, 2025, Meesho reported 706,471 annual transacting sellers and 234.20 million annual transacting users.

Meesho’s logistics network, operated under the brand Valmo, integrates third-party logistics providers, including first- and last-mile delivery partners, sorting centres, and truck operators, to ensure efficient order fulfilment across India. As of September 30, 2025, the company employed 2,082 full-time employees.

Promoters of Meesho Ltd

The promoters of Meesho Ltd., Vidit Aatrey and Sanjeev Kumar, bring extensive expertise in e-commerce, social commerce, digital marketing, supply chain management, and product sourcing. Their visionary leadership and deep understanding of technology-driven retail, customer-focused solutions, and scalable business models have been instrumental in establishing Meesho as a trusted and leading platform in India’s social commerce ecosystem.

Offer For Sale

Promoter Selling Shareholders:

Vidit Aatrey (Promoter Selling Shareholder) is offering up to 16,000,000 equity shares, and Sanjeev Kumar (Promoter Selling Shareholder) is offering up to 16,000,000 equity shares.

Corporate Selling Shareholders:

Elevation Capital V Limited is offering up to 24,445,349 equity shares, Peak XV Partners Investments V is offering up to 17,380,873 equity shares, Venture Highway Series 1, a Series of Venture Highway SPVs LLC is offering up to 8,636,727 equity shares.

Along with it, Golden Summit Limited is offering up to 7,961,640 equity shares, Y Combinator Continuity Holdings I, LLC is offering up to 7,195,453 equity shares, Sarin Family India LLC is offering up to 1,591,044 equity shares, and Gemini Investments, L.P. is offering up to 1,247,351 equity shares.

Individual Selling Shareholder:

Man Hay Tam (Individual Selling Shareholder) is offering up to 3,301,140 equity shares.

Lead Managers of Meesho Ltd

Kotak Mahindra Capital Company Limited, J.P. Morgan India Private Limited, Morgan Stanley India Company Private Limited, Axis Capital Limited and Citigroup Global Markets India Private Limited are acting as the Book Running Lead Managers. KFin Technologies Limited is the registrar managing investor applications and allotment.

Objectives of the IPO Offer

Meesho intends to utilise the net proceeds from its IPO primarily to strengthen its subsidiary MTPL by investing Rs. 1,390 crore in cloud infrastructure, Rs. 480 crore for salaries of its AI, machine learning, and technology teams, and Rs. 1,020 crore for marketing and brand initiatives. Additionally, funds will be allocated for inorganic growth through acquisitions, strategic initiatives, and general corporate purposes.

Financial Analysis of Meesho Ltd

The company has shown fluctuating financial performance in recent years. Total Income increased from Rs. 5,897.69 crore in FY23 to Rs. 7,859.24 crore in FY24, then increased to Rs. 9,900.90 crore in FY25, with Rs. 5,857.69 crore recorded for the quarter ended September 30, 2025.

Profit After Tax (PAT) remained negative but showed signs of improvement, with a loss of Rs. 1,671.90 crore in FY23, reducing to a loss of Rs. 327.64 crore in FY24, then a larger loss of Rs. 3,941.71 crore in FY25, and a loss of Rs. 700.72 crore for the quarter ended September 30, 2025.

Meesho Ltd Vs Peers

Meesho: It has a revenue of Rs.  93,899.03 million with a negative EPS of Rs. (9.98) for both basic and diluted earnings and the net asset value per equity share is Rs.  3.68.

Eternal Limited: This company generated revenue of Rs. 202,430 million and its EPS stands at Rs. 0.60 (basic) and Rs. 0.58 (diluted). The net asset value per equity share is Rs.  31.42.

Swiggy Limited: Swiggy recorded revenue of Rs. 152,267.55 million but has a negative EPS of Rs. (13.72) for both basic and diluted. Its net asset value per equity share is Rs.  40.98.

Brainbees Solutions Limited: The company earned Rs. 76,596.14 million in revenue and has a negative EPS of Rs. (4.11) for both basic and diluted earnings. The net asset value per equity share is Rs. 91.00.

FSN E-Commerce Ventures Limited: It reported revenue of Rs. 79,498.20 million, with an EPS of Rs. 0.23 for both basic and diluted and the net asset value per equity share is Rs.  4.55.

Vishal Mega Mart Limited: Vishal Mega Mart’s revenue is Rs.  107,163.45 million and the EPS is Rs. 1.40 (basic) and Rs. 1.30 (diluted). The net asset value per equity share is Rs.  13.92.

Trent Limited: This company earned Rs.  171,346.10 million in revenue, with an EPS of Rs.  43.51 (both basic and diluted), and the net asset value per equity share is Rs.  153.64.

Avenue Supermarts Limited: Avenue Supermarts reported the highest revenue of Rs.  593,580.50 million, with an EPS of Rs.  41.61 (basic) and Rs.  41.50 (diluted). Its net asset value per equity share is Rs.  329.29.

Meesho Ltd Strengths and Weaknesses

Strengths:

Massive scale & user base:  Meesho claims one of the largest user bases among Indian e‑commerce platforms (Annual Transacting Users in hundreds of millions), which gives huge reach and volume potential.

Strong penetration beyond metros (Tier‑2 / Tier‑3 / Rural India): A large share of Meesho’s users and orders come from outside top cities, helping tap the fast-growing “value‑commerce” segment across smaller towns.

Zero‑commission, asset-light marketplace model: Meesho does not carry inventory or heavy infrastructure; sellers pay zero commission, making it attractive for small/regional/unbranded sellers and reducing fixed costs for Meesho.

Strong logistics capability via own fulfilment arms: Meesho’s in‑house logistics network helps fulfil a substantial portion of orders, which can lower delivery costs and improve delivery reliability.

Weaknesses

Financial & Cash Flow Risk: The Company has incurred losses since inception and may continue to do so if it cannot generate sufficient revenue or manage cash flows effectively.

Consumer Engagement Risk: Failure to attract or retain consumers on the platform could adversely impact business, financial condition, and operations.

Seller Retention Risk: Inability to attract or retain sellers may negatively affect the Company’s business, cash flows, and results of operations.

Logistics & Supply Chain Risk: Dependence on third-party logistics partners exposes the Company to risks from service interruptions, failures, or inadequate service quality, which could harm business and financial performance.

Conclusion

Meesho Ltd is a leading social commerce platform in India, connecting consumers, sellers, logistics partners, and content creators through technology-driven solutions. The company demonstrates strong operational growth, a scalable business model, and a focus on AI-driven initiatives and affordable products.

The IPO offers investors a chance to participate in a fast-growing, innovation-led e-commerce ecosystem. However, risks include continued losses, reliance on third-party logistics, consumer and seller retention challenges, and operational cash flow pressures, which investors should carefully evaluate before investing.

Written by Sridhar J

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