Meesho pre-files DRHP with SEBI to raise $500 Mn in primary capital

SoftBank-backed meesho has confidentially submitted its Draft Red Herring Prospectus (DRHP) to SEBI as it gears up to raise $500 million in fresh capital, according to media reports. The IPO will also include a secondary component, allowing some early backers to partially exit.

Sources added that Meesho’s co-founders, Vidit Aatrey and Sanjeev Barnwal, will not be selling any shares in the offering.

Read also- FES Cafe Raises ₹3 Cr in Seed Round Led by Aakash Anand and Wolfpack Labs to Fuel Pan-India Expansion

Ahead of the public listing, the Bengaluru-based e-commerce firm has restructured its board. Sarthak Misra (SoftBank) and Ashutosh Sharma (Prosus) have stepped down, while Mohit Bhatnagar (Peak XV Partners) and Mukul Arora (Elevation Capital) are expected to remain.

Elevation Capital, Peak XV, and Prosus each hold a 13–15% stake in Meesho, while SoftBank owns around 10%. Other notable investors include WestBridge Capital and Fidelity.

Last week, Economic Times reported that Meesho secured shareholder approval for its domicile shift from the US to India, a key step ahead of its public listing. The Prosus-backed startup has now joined a growing cohort of Indian startups opting for SEBI’s confidential IPO route.

Earlier this week, logistics company Shadowfax also pre-filed its DRHP, targeting a Rs 2,000–2,500 crore raise. Other companies like PhysicsWallah, groww, boat, Aequs, and Shiprocket have also chosen the confidential filing path this year.

This route allows companies to control IPO timing, manage market risks, and keep sensitive financial and strategic information away from competitors until closer to listing.

Meanwhile, Meesho has reported a strong performance in FY24, with a 33% increase in operational revenue to Rs 7,615 crore, up from Rs 5,735 crore in FY23. The company also slashed its adjusted losses by 97%—from Rs 1,569 crore to Rs 53 crore—crediting organic growth and improved operational efficiencies, especially in logistics, driven by its in-house arm, Valmo Logistics, launched in February 2023.