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Meesho LimitedNovember 30, 2025

Meesho IPO: RHP Simplified

A breakdown of Meesho's Red Herring Prospectus and IPO details.

#IPO#E-commerce#RHP#Startups

Business Overview

Meesho is India's largest e-commerce marketplace by order volume (FY25), connecting consumers with sellers, logistics partners, and content creators. It focuses on 'Everyday Low Prices' for value-conscious buyers.

The platform connects over 213 million annual transacting users with ~5.75 lakh sellers (as of June 2025). It operates an asset-light model, owning no inventory and using its proprietary logistics marketplace, Valmo, to aggregate third-party logistics partners.

Key Differentiator: Meesho charges zero commission to sellers, monetizing instead through ads and fulfillment services.

IPO Details

Open Date
2025-12-03
Close Date
2025-12-05
Listing Date
2025-12-10
Price Band
₹105 - ₹115
Lot Size
135 Shares
Issue Size
₹5,421.20 Crore

Sentiment Analysis

Sentiment Dashboard

Social Media Hype
Neutral
BearishNeutralBullish
Summary: Buzz is high due to the brand's reach in Tier 2+ cities. However, financial analysts express caution regarding the restated losses in FY24 and FY25 despite cash flow positivity.

Financials

Financial Performance

₹9390Cr₹7043Cr₹4695Cr₹2348Cr₹0Cr
Rev: ₹5735Cr
Loss: ₹1672Cr
FY 2023
Rev: ₹7615Cr
Loss: ₹328Cr
FY 2024
Rev: ₹9390Cr
Loss: ₹3942Cr
FY 2025
Revenue
Profit
Loss
MetricFY 2023FY 2024FY 2025
Revenue₹5735 Cr₹7615 Cr₹9390 Cr
Net Profit₹-1672 Cr₹-328 Cr₹-3942 Cr
Margin-29.1%-4.3%-41.9%*

Funds Usage

ObjectiveAmount
Investment in Cloud Infrastructure (via Subsidiary MTPL)₹1,390 Crore
Marketing and Brand Initiatives₹1,020 Crore
Salaries for Machine Learning/AI & Tech Teams₹480 Crore
Inorganic Growth & General Corporate PurposesBalance Amount

👍 Strengths

  • Market Leader by Volume: Highest number of placed orders and annual transacting users among Indian e-commerce players (FY25).
  • Asset-Light Model: Does not own inventory or logistics assets; utilizes 'Valmo' to orchestrate 3rd party logistics, reducing fixed costs.
  • Deep Penetration: Strong hold in Tier 2, Tier 3, and rural cities, which drive the majority of new e-commerce adoption.
  • Cash Flow Positive: Adjusted EBITDA and Operating Cash Flows have shown improvement in recent quarters excluding exceptional items.

⚠️ Risks

  • History of Losses: The company has incurred losses since inception and reported a restated loss of ₹3,942 Cr in FY25 (due to exceptional items).
  • Intense Competition: Faces stiff competition from Amazon, Flipkart, and emerging quick-commerce players.
  • High Attrition: Reported high employee attrition rates (33.9% in FY25 and 52% in FY24), particularly in technology teams.
  • Dependency on 3rd Parties: Relies entirely on third-party logistics and payment gateways; disruptions here directly impact revenue.

Peer Comparison

Avenue Supermarts Limited (DMart)

Revenue

₹59,358 Cr

P/E Ratio

101.33x

Eternal Limited (Zomato)

Revenue

₹20,243 Cr

P/E Ratio

599.57x

Trent Limited

Revenue

₹17,135 Cr

P/E Ratio

106.12x

Swiggy Limited

Revenue

₹15,227 Cr

P/E Ratio

N/A

Vishal Mega Mart Limited

Revenue

₹10,716 Cr

P/E Ratio

107.14x

FSN E-Commerce Ventures (Nykaa)

Revenue

₹7,950 Cr

P/E Ratio

1112.13x

Brainbees Solutions Limited (FirstCry)

Revenue

₹7,660 Cr

P/E Ratio

N/A

Disclaimer

The content provided on this website is for informational and educational purposes only and does not constitute financial, investment, or trading advice. We are not SEBI registered advisors. Please consult with a certified financial advisor before making any investment decisions. Investments in the stock market are subject to market risks; read all scheme-related documents carefully.

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