Introduction

India’s e-commerce platform Meesho is making headlines as it converts into a public limited company, signalling its intent to prepare for a domestic IPO. From changing its corporate structure to shifting its domicile back to India, Meesho’s recent strategic moves reflect the company's ambition to cement its place among India’s top consumer internet companies.

In this article, we decode what Meesho does, why it's restructuring, who backs it, and what its numbers reveal about its IPO readiness.

A) What Does Meesho Do?

Meesho is a Bengaluru-based online marketplace that enables small businesses, individual entrepreneurs, and homepreneurs to sell products directly to consumers using social platforms like WhatsApp, Facebook, and Instagram. It operates on a zero-commission model and focuses heavily on Tier 2+ cities, making e-commerce more inclusive and affordable for India’s next billion users.

Founded in 2015 by Vidit Aatrey and Sanjeev Barnwal, Meesho has become a go-to platform for low-cost apparel, home goods, accessories, and beauty products — largely driven by unbranded sellers and budget-conscious consumers.

B) Corporate Restructuring: From Pvt Ltd to Public Ltd

In May 2025, Meesho converted its legal structure from Fashnear Technologies Private Limited to Meesho Private Limited, and subsequently to a public limited company — a key milestone in IPO preparation.

Additionally, the company has filed with the National Company Law Tribunal (NCLT) to officially shift its domicile from the US back to India. This reversal from a US holding structure to an Indian base allows Meesho to:

• Align with Indian regulatory requirements

• Enable a domestic IPO listing

• Signal long-term commitment to Indian markets and investors

C) IPO Plans & Strategy

Although Meesho has not yet filed its Draft Red Herring Prospectus (DRHP), the company has appointed key investment banks — Kotak Mahindra Capital, JP Morgan, Citi, and Morgan Stanley — for IPO advisory.

The company has stated it is evaluating strategic alternatives, including listing on a recognized stock exchange in India. Internal compliance measures and structural changes are being undertaken to ensure a smooth IPO process when the time is right.

D) Business Performance & Key Metrics

Meesho’s growth trajectory remains strong:

• FY24 Revenue: ₹7614+ crores, up 32% YoY

• Transacting Users: 187 million annually, up 26% YoY

• Gross Merchandise Value (GMV): ~$6.2 billion

• Projected GMV CAGR: 26% over the next 6 years

According to a CLSA report, Meesho holds:

• 37% market share in terms of number of orders (2024)

• 8.5% market share in terms of GMV

Below is a snapshot of Meesho’s key financial indicators based on its filings:

Meesho’s financials reflect a significant improvement in operating efficiency, with losses shrinking substantially by FY24 — laying the groundwork for IPO-focused profitability.

E) Financials & Valuation

Here is a summary of Meesho’s last three years of performance:

Meesho has significantly narrowed its losses over the last two years and is reportedly targeting profitability ahead of IPO.

As on March 31, 2024, Meesho had 7.83 crore outstanding equity shares. In April 2024, Meesho Inc. infused ₹2,250 crore at a share price of ₹3,755, implying a pre-money valuation of ~$3.95 billion. This marks a key valuation benchmark ahead of its anticipated IPO.

ESOP Bonus Plan

As part of its restructuring and employee alignment strategy, Meesho’s board has approved a plan to issue 41 crore bonus shares to employees and existing stakeholders — a move often seen before an IPO to unlock value and improve liquidity for early contributors.

Conclusion

Meesho’s conversion to a public limited company and its intent to shift back to India indicate serious IPO readiness. With a large user base, strong order volumes, improving financials, and a focus on Bharat-first commerce, Meesho is positioning itself as a mass-market e-commerce leader.

As investors in unlisted shares look for the next potential listing candidate, Meesho is one of the most closely tracked names in the consumer tech space.

Stay tuned to UnlistedZone for updates on Meesho’s IPO filing, share pricing trends in the unlisted market, and investor insights.