E-commerce unicorn Meesho has confidentially filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) to raise Rs 4,250 crore (approximately $500 million) through a primary share issue, sources told Entrackr.
The filing comes on the heels of Meesho’s reverse flip to India and its transition into a public company last month.
While earlier reports suggested Meesho was eyeing a $1 billion IPO comprising both primary and secondary components, the current $500 million (Rs 4,250 crore) primary issue leaves the offer-for-sale (OFS) portion uncertain. Some early investors may still get an opportunity to partially exit with solid returns.
In response to Entrackr’s queries, Meesho declined to comment.
The company has roped in Citi, Kotak Mahindra Capital, Morgan Stanley, and Axis Capital as bankers for its upcoming initial public offering (IPO).
Meesho’s reverse flip, a key step ahead of its public listing, reportedly cost the company around $288 million. As a US headquartered firm until recently, Meesho had not disclosed its detailed shareholding structure. However, post the reverse flip, Entrackr reviewed the company’s filings and found that Elevation Capital is the largest external shareholder with a 14.49% stake, followed by Peak XV at 13.64%. SoftBank and Prosus own 13.14% and 9.91%, respectively.
During the fiscal year ended March 2024, the company continued to see strong growth and recorded a 33% YoY revenue growth to Rs 7,615 crore. Meanwhile, its adjusted losses reduced by 97% to Rs 53 crore in FY24. The company has yet to file its FY25 financial statements.
Meesho becomes the seventh company from the Indian startup ecosystem to choose a confidential route for filing draft IPO papers in 2025. Earlier, Shadowfax, PhysicsWallah, Groww, Shiprocket, boAt and Aequs also filed their DRHP via confidential route.
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