IPO Update: Meesho IPO in December- DRHP Signals ₹6,500 Crore Issue as India Eyes Record ₹40,000 Crore Fundraise

Mumbai | November 27

India’s primary market is gearing up for one of its busiest months ever, with December expected to drive an IPO fundraising surge of ₹35,000-₹40,000 crore, a figure that could push 2025’s overall capital mobilisation to a record high. At the centre of this momentum is the highly anticipated Meesho IPO, one of the most closely watched tech listings of the year.

Meesho IPO: SEBI Approval, Timeline and Valuation

SoftBank-backed Meesho Ltd received SEBI approval for its IPO in early November, clearing the final regulatory hurdle. With the approval valid for 12 months, the company is now targeting a listing in the first week of December, subject to market conditions.

According to media reports, Meesho is eyeing a valuation of around $6 billion (approx. ₹53,000 crore). The e-commerce firm is also in discussions with SBI Funds Management for a pre-IPO placement, which could influence the final issue size.

The Meesho IPO is filing through the confidential pre-filing route, which allows companies to share sensitive business details publicly only at the final stage often signalling strong investor interest and tighter communication control.

Meesho IPO Issue Size: Fresh Issue + OFS Breakdown

As per the Draft Red Herring Prospectus (DRHP), the Meesho IPO will include:

• Fresh Issue: up to ₹4,250 crore
• Offer for Sale (OFS): 17.57 crore equity shares by existing shareholders

Key early investors exiting partially through the OFS include: Elevation Capital, Peak XV Partners, Venture Highway, and Y Combinator.

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This structure indicates that Meesho is balancing capital for expansion with investor liquidity, a common feature in late-stage tech IPOs.

What the Meesho DRHP Signifies: Key Takeaways

A close look at Meesho’s DRHP highlights several themes that will matter to potential investors:

1. Strong user growth and widening scale

Meesho ended FY25 with approximately:

• 3 crore annual transacting users
• 4x increase in order frequency
• ₹8,679 crore in net merchandise value (NMV)

This positions Meesho as India’s largest e-commerce platform by annual transacting users, surpassing several established competitors.

2. Focus on AI, machine learning, and technology investment

The DRHP reveals that Meesho will deploy IPO proceeds to strengthen:

• Cloud infrastructure
• Machine learning and AI teams
• High-performance tech systems

This indicates a clear pivot toward AI-driven retail, aligning with global e-commerce trends.

3. Strengthening brand and marketing

A portion of the IPO funds is earmarked for brand building, essential in an intensely competitive marketplace dominated by Amazon and Flipkart.

4. Inorganic growth strategy

Meesho has set aside capital for acquisitions and strategic initiatives, signalling an appetite to expand into adjacencies and strengthen its ecosystem.

Why the Meesho IPO Matters in December’s Mega Pipeline

December 2025 is shaping up to be one of the most significant months for India’s IPO market. The expected fundraising scale ₹28,000 to ₹32,000 crore from confirmed candidates makes Meesho one of the anchor listings of the month.

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Major IPOs expected in December 2025

1. ICICI Prudential AMC – approx. ₹10,000 crore
2. Meesho Ltd – approx. ₹6,500 crore
3. Clean Max Enviro Energy – approx. ₹5,200 crore
4. Fractal Analytics – approx. ₹5,000 crore
5. Hero FinCorp – approx. ₹3,668 crore
6. Milky Mist Dairy Food – approx. ₹2,035 crore
7. Skyways Air Services, Corona Remedies, and Aequs Ltd – smaller issues also lined up

The strong listing performance of November IPOs such as Groww (94% above issue price), PhysicsWallah (33% premium), and Pine Labs (9.5% premium) has fuelled positive sentiment heading into December.

Meesho IPO Use of Proceeds:

According to the DRHP, Meesho will use IPO funds to:

• Enhance cloud infrastructure via Meesho Technologies Pvt Ltd
• Pay salaries for AI, ML, and tech hires
• Fund marketing and brand visibility
• Drive inorganic growth through acquisitions
• Support general corporate purposes

This signals that Meesho is preparing for a scaled, AI-powered expansion, positioning itself for long-term profitability.

Meesho plans to list its equity shares on both major stock exchanges, BSE and NSE. The IPO will be managed by Kotak Mahindra Capital Co. Ltd, which is serving as the Book Running Lead Manager, while KFin Technologies Ltd has been appointed as the registrar for the issue. Given Meesho’s scale, rapid growth, and strong brand visibility, analysts expect robust investor participation across both institutional and retail segments.

About the company

Founded in 2015, Meesho has rapidly evolved into one of India’s fastest-growing e-commerce platforms, operating a multi-sided marketplace that connects consumers, independent sellers, logistics partners and content creators. Built on a low-cost, high-volume operating model, the company has become a dominant player in the value-focused online retail segment, particularly in affordable fashion, lifestyle goods and hyper-value commerce.

The IPO is set to be one of the largest tech listings of the year and a key driver of India’s expected ₹40,000 crore fundraising boom in December. The DRHP signals a company preparing for deeper technology investment, wider user penetration, and aggressive future growth.

If market conditions remain supportive, Meesho’s debut could set the tone for a blockbuster end to 2025 for India’s primary markets.

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