Ecommerce platform Meesho secures shareholder nod for Rs 4,250 crore IPO

SoftBank-backed e-commerce platform Meesho has secured shareholder approval to raise up to Rs 4,250 crore through an initial public offering (IPO).

The resolution was passed during an Extraordinary General Meeting held on June 25, as detailed in the company's regulatory filing dated June 27. This approval allows Meesho to proceed with the issuance of fresh equities to raise the significant capital.

Further regulatory filings indicate a significant expansion of Meesho's 2024 employee stock option plan (ESOP), with an additional 1.1 million options bringing the total to 7.5 million. This coincides with robust operational growth, as a recent presentation by investor Prosus revealed Meesho processed over 1.8 billion orders in FY25, marking a substantial 37 percent year-on-year increase from 1.3 billion in FY24.

In preparation for its public debut, the e-commerce company recently re-domiciled from the US to India and intends to submit its draft red herring prospectus (DRHP) to the Securities and Exchange Board of India (SEBI) via the confidential route. Shareholders have also endorsed the appointment of founder Vidit Aatrey to the pivotal roles of chairman, managing director, and CEO.

Meesho's ownership structure includes significant stakes held by institutional investors Elevation Capital, Peak XV Partners, and Prosus, each possessing 13–15 percent, while Japanese conglomerate SoftBank holds nearly 10 percent. Other notable investors contributing to Meesho's growth include WestBridge Capital and Fidelity.

The latest IPO move comes amidst persistent market speculation and various reports that have consistently highlighted Meesho's intentions to go public, aiming to capitalize on the growing e-commerce landscape and fund its expansion plans.