Meesho receives SEBI approval for IPO:Company files revised draft papers, aiming to raise ₹7,036 crore through the issue

E-commerce platform Meesho has received approval from SEBI for its Initial Public Offering (IPO). Meesho has submitted its Updated Draft Red Herring Prospectus (UDRHP) for the IPO to the Securities and Exchange Board of India (SEBI). How much money will Meesho raise? Meesho will raise approximately $480 million (₹4,221 crore) by issuing fresh shares. Additionally, shares worth $300 million (₹2,638 crore) will be sold in the Offer For Sale (OFS). The total IPO size will be $800 million (₹7,036 crore). The company will use this fund for tech upgrades, brand building, and general corporate expenses. Meesho expects a valuation of ₹70,360 crore The book-building process will run for another 30-45 days, after which the IPO will be launched and the valuation finalised. However, companies typically sell 10% of their shares in an IPO, so Meesho’s valuation is expected to be set around $8 billion (₹70,360 crore). Who will sell shares in OFS? In OFS, Meesho’s old investors like Peak XV Partners, Elevation Capital, Venture Highway (now part of General Catalyst), Y Combinator and others will sell their shares. Additionally, the company’s founders, Vidit Aatrey and Sanjeev Barnwal, will also sell some of their stake. Loss in FY25 was ₹3,941 crore According to reports, the company’s revenue in FY24 was ₹7,615 crore, but the loss was ₹305 crore. In FY25, the loss further increased to ₹3,941 crore. The reason for this was that the company incurred extra expenses for shifting from Delaware, USA, to India. If these extra expenses are removed, the company’s FY25 loss would only be ₹108 crore. In Q1FY26, there was also a loss of ₹289 crore. Meesho’s focus is currently on growth, not profit. The company will continue to follow the same path in the upcoming quarters.