Meesho Aims for $6 Billion Valuation Ahead of December IPO

Meesho Ltd., a prominent e-commerce platform backed by the SoftBank Group Corp., is aiming for a valuation of approximately ₹53,000 crore (around $6 billion) in its initial public offering (IPO) set to launch in early December. This move aligns Meesho with a growing number of companies leveraging India's expanding IPO market.

According to a report by Bloomberg News, the company is currently in discussions with SBI Funds Management Ltd. for a potential pre-IPO placement. Sources familiar with the matter, who wished to remain anonymous due to the confidential nature of the discussions, indicated that this placement could impact the overall size of the IPO, which is initially estimated at ₹6,000 crore. As negotiations continue, details such as the timing and the size of the deal remain subject to change.

Representatives from Meesho and SBI Mutual Fund have not yet responded to requests for comment on this development. It is important to note that Hindustan Times has not verified this information independently.

The upcoming IPO will feature a fresh issue of shares valued at ₹42,500 crore, alongside an offer for sale of 17.57 crore shares by existing investors, as outlined in the company’s draft red-herring prospectus. In the fiscal year ending 31 March 2025, Meesho reported a free cash flow of ₹1,032 crore, marking the highest cash flow among listed e-commerce firms in India.

The financial institutions advising Meesho on the IPO include Kotak Mahindra Capital Co. Ltd., Axis Bank Ltd., and local branches of JPMorgan Chase & Co., Morgan Stanley, and Citigroup Inc., as stated in the prospectus.

Meesho, which has gained popularity in smaller cities across India, joins a growing trend of companies tapping into the nation's burgeoning IPO landscape. In the current year, firms have raised nearly $19.5 billion, following a record total of $21 billion in 2024, as per data compiled by Bloomberg. This surge in IPO activity reflects increased investor interest and confidence in India's economic growth potential, especially in the digital economy sector.