Meesho’s upcoming IPO worth ₹5,421 crore opens for subscription on December 3 and closes on December 5, drawing significant attention from investors and market watchers. The IPO includes a fresh issue of shares and an offer-for-sale by existing investors, with the company aiming for a valuation of around $5.6–6 billion at the upper end.
Meesho has established itself as India’s largest e-commerce platform by number of users and orders during the 12 months to June 2025 — powered by a marketplace model that connects price-sensitive consumers, sellers, logistics partners and creators across the country. A key feature of its business is a zero-commission model for sellers and no platform fee for consumers; Meesho’s revenues come instead from logistics, fulfilment, advertising and data services, helping it stay asset-light while catering to value-first buyers.
The company’s growth metrics present a strong scale story. Its Annual Transacting Users rose from 136 million in FY23 to 214 million by Q1 FY26, while orders increased from 1.02 billion in FY23 to 1.83 billion in FY25. Seller count crossed 575,000. Meesho reports that despite investment in technology and infrastructure, underlying unit economics and operating leverage have improved.
Proceeds from the IPO are earmarked for expansion of cloud infrastructure, strengthening AI and machine-learning capabilities, building brand and marketing efforts, and funding general corporate requirements — moves aimed at scaling the platform and enhancing efficiency.
However, risks remain. Though Meesho shows strong scale and improving metrics, profitability remains under scrutiny. Given the low average order value (AOV), competition from larger players, and the challenge of managing a wide and diverse seller base (many unbranded or regional), margin pressure and quality control issues could emerge.
For investors, the IPO offers exposure to one of India’s largest value-commerce platforms with significant reach and growth potential — but also involves the typical risks of scale-led, growth-oriented internet businesses where monetization and margin stability are still evolving.
