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Industry : E-Retail/ E-Commerce

Meesho Limited View all IPOs

Price Band

Rs 105 – Rs 111

Meesho Limited is going public with a fresh issue and an offer for sale. The issue opens on 03rd December 2025.

MOJO CALL

Why

Avoid

MOJO CALL

Avoid

Neutral

Continued Losses and Cash Flow Volatility

The company has consecutively incurred losses since its 2015 inception, with Restated losses of ₹4,332.14 million in H1 FY2026 and ₹1,084.29 million in Fiscal 2025. Adjusted EBITDA remained negative at (₹5,518.72) million for the six months ended September 2025. The company also reported negative operating cash flows in H1 FY2026 and Fiscal 2023, indicating inconsistent cash generation despite revenue growth.

Declining Take Rates and Structural Monetization Constraints

Meesho's take rate on GMV has declined from 19.02% in Fiscal 2024 to 18.66% in Fiscal 2025, and further to 16.65% in H1 FY26, reflecting a strategic but financially challenging decision to pass cost efficiencies to sellers rather than retain them as margin. The company's revenue per Placed Order decreased from ₹56.74 in Fiscal 2024 to ₹51.17 in Fiscal 2025, and dropped sharply to ₹44.20 in H1 FY26 — a 22% decline in per-order monetization within 18 months. This trend, while intended to strengthen seller relationships and drive volume growth, creates a structural ceiling on revenue growth relative to GMV expansion.

Everyday Low Prices through Zero Commission Model

Meesho's zero commission model for unbranded sellers enables costs 35-61% lower than competitors, according to the Redseer Report. This allows sellers to offer affordable products directly to consumers without physical retail intermediaries. Consequently, Meesho has the lowest average order value among scaled e-commerce players while becoming India's largest e-commerce platform by annual Placed Orders with 234.20 million transacting users.

Elevated Valuations Despite Persistent Losses

Based on the TTM financials, the company is seeking a market-to-sales valuation of over 4.70x. Despite operating in a rapidly growing industry, it has consistently reported losses since its inception in 2015. Under the current business model, the company remains far from achieving profitability. Given its continued difficulty in translating rising GMV (Gross Merchandise Value) into sustainable earnings, we recommend avoiding the issue.

Issue Details

Issue Opens	03rd December 2025
Issue Closes	05th December 2025
Price Band	Rs 105 – Rs 111
Issue size (Upper Band)	Rs. 5421.20 crore
Issue Type	FRESH ISSUE & OFFER FOR SALE
Market cap (based on upper band)	Rs 50095.75 crore
Sales- March 2025 (Rs./Crs)	Rs. 9389.90 Cr
Net Profit - March 2025 (Rs./Crs)	Rs. -3941.71 Cr
Industry	E-Retail/ E-Commerce
Promoters	VIDIT AATREY AND SANJEEV KUMAR
Lead Manager	Kotak Mahindra Capital, JP Morgan, Morgan Stanley, Axis Capital and Citigroup

Objective of the Issue

Details

Objectives of the Issue – Fresh Issue: Rs 4,250 crore & Offer for Sale: Rs 1,171.20 crore

The Objectives of the Offer are for:

1. Investment for cloud infrastructure, in MTPL, a subsidiary of the company – Rs 1,390 crore

2. Payment of salaries of the existing and replacement hires for the Machine Learning and AI and technology teams for AI and technology development undertaken by MTP, a subsidiary of the company – Rs 480 crore

3. Investment in MTPL, a subsidiary of the company, for expenditure towards marketing and brand initiatives – Rs 1,020 crore

4. Funding Inorganic Growth and General Corporate Purposes – Rs 1,360 crore

List of Shareholders Selling Their Stake

Name	Type	Value of Shares (in Rs)	% of OFS
Elevation Capital V	Institutional Investor	2,713,433,739	23%
Peak XV Partners Investments V	Institutional Investor	1,929,276,903	16%
Vidit Aatrey	Promoter	1,776,000,000	15%
Sanjeev Kumar	Promoter	1,776,000,000	15%
Venture Highway Series 1	Institutional Investor	958,676,697	8%
Golden Summit	Institutional Investor	883,742,040	7.5%
Y Combinator Continuity Holdings I	Institutional Investor	798,695,283	7%
Man Hay Tam	Individual Investor	366,426,540	3%
Sarin Family India	Institutional Investor	176,605,884	1.5%
Gemini Investments	Institutional Investor	138,455,961	1%
Others	-	194,723,082	2%

Business Operations

About Company

Meesho Limited is a Bengaluru-based multi-sided technology platform driving e-commerce in India, originally incorporated as FashNear Technologies Private Limited in August 2015. The company operates a value-focused e-commerce marketplace that connects four key stakeholders: consumers, sellers, logistics partners, and content creators.

Meesho serves consumers from diverse income backgrounds across India by offering 'Everyday Low Prices,' enabled through a low-cost channel for sellers including manufacturers, wholesalers, and traders.

The platform delivers a personalized, discovery-led shopping experience designed to make online shopping easy and engaging. Meesho monetizes its platform through services provided to sellers such as order fulfillment, advertising, and data insights. According to the company's RHP, Meesho is the largest e-commerce player in India in terms of annual placed orders and has been the most downloaded shopping app in India for four consecutive fiscal years.

Segment Revenue Breakup

Revenue Breakdown by Segment:
Segment	H1 FY2026	FY2025	FY2024
Marketplace	99.93%	99.96%	99.98%
New initiatives	0.07%	0.04%	0.02%

Financials

Financial Overview

The company's revenue grew at a CAGR of 28% between FY2023 and FY2025, with revenues of Rs 9,389.90 crore recorded for FY2025. For H1 FY2026, the company recorded revenues of Rs 5,577.50 crore.

The company reported a negative EBITDA of Rs 551.87 crore for the first half of FY2026. For FY2025, the EBITDA stood at negative Rs 219.5 crore, significantly up from negative Rs 230 crore and negative Rs 1,693 crore recorded in FY2024 and FY2023, respectively.

Similarly, the company reported a significant loss of Rs 700 crore for the first half of FY2026. For FY2025, the loss stood at Rs 3,942 crore, significantly higher than Rs 328 crore and Rs 1,672 crore recorded in FY2024 and FY2023, respectively.

The company has managed to successfully generate positive cashflow from operations (CFO) for the past 2 years. The company generated a positive CFO of Rs 539 crore and Rs 220 crore for the past 2 years. On the contrary, the company has recorded negative CFO of Rs 851 crore in the first half of FY2026.

As of 30th September 2025, the company recorded lease liabilities of Rs 73.4 crore.

Financial Performance (Rs/crore)

Rs./Crs	H1 FY2026	FY2025	FY2024
Sales	5575.54	9389.90	7615.15
Net Profit	-700.72	-3941.71	-327.64