New updates have been reported about Meesho (PC:MEESH)
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Meesho, a prominent player in India’s e-commerce sector, is gearing up for a significant initial public offering (IPO) valued at approximately $606 million. This move is marked by minor sell-downs from early investors, while major stakeholders like SoftBank and Prosus retain their shares, underscoring strong investor confidence in India’s burgeoning online retail market. The company plans to price its shares between ₹105 and ₹111, aiming to raise ₹42.50 billion in fresh capital, with a post-issue valuation of around ₹501 billion. This IPO positions Meesho as the first major horizontal e-commerce platform in India to go public, ahead of competitors like Flipkart and Amazon, who are also exploring public listings.
Founded in 2015, Meesho has evolved from a social commerce platform into a comprehensive marketplace, catering to India’s price-sensitive consumers and small merchants with a low-cost model. The company reported a revenue increase to ₹55.78 billion for the six months ending September 30, although its losses widened to ₹4.33 billion. Despite this, Meesho’s user base remains robust, with 234.20 million transacting users and 706,471 active sellers over the past year. The IPO is expected to enhance Meesho’s ability to attract talent and strengthen its ecosystem, as noted by CFO Dhiresh Bansal. The public offering is set to open on December 3, with a significant portion reserved for institutional investors, signaling a pivotal moment for Meesho as it seeks to solidify its position in the competitive e-commerce landscape.