Meesho Picks Morgan Stanley & Two Others As Bankers To raise $1B Via IPO At $10B valuation

Meesho, the ecommerce giant, is reportedly planning to raise $1 billion through an initial public offering (IPO) as it works towards going public later this year. 

Sources said that the company has selected Morgan Stanley, Kotak Mahindra Capital, and Citi as advisers for its IPO.

Although Meesho aims to raise $1 billion, bankers have suggested a valuation of $10 billion for the company. Meesho is expected to file its draft documents in the coming weeks.

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This news comes two months after Meesho secured fresh funding between $250 million and $270 million from investors like Tiger Global, Think Investments, and Mars Growth Capital, bringing its total funding for the round to around $550 million. 

This deal valued Meesho at approximately $3.9-4 billion, which is a 20% drop from its previous valuation of $4.9 billion.

In December last year, Meesho’s investor, Prosus, mentioned that Meesho is one of the companies that could go public within 18 months. Reports also suggest that Meesho has filed an application to shift its headquarters to its Indian unit, Fashnear Technologies, which would pave the way for its public listing.

About Meesho

Founded in 2015 by Vidit Aatrey and Sanjeev Barnwal, Meesho now has over 1.5 million sellers on its platform across India and more than 140 million annual transacting users. Its investors include DST Partners, Elevation Capital, Facebook and Prosus.

Meesho reported an 81.8% reduction in its net loss, which fell to Rs 304.9 crore in FY24, compared to Rs 1,675 crore the previous year. Its operating revenue increased by 32.8% to Rs 7,614.9 crore in FY24, up from Rs 5,734.5 crore the year before.

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