For investors, it can be quite challenging to decide if the Meesho IPO is a good investment or not. If you are unsure and still thinking about whether to apply or skip this IPO, don’t worry. In this article, we present the top key factors and a detailed review of the Meesho IPO. This will help you analyze the strengths, risks, and financial details of the Meesho IPO, making your investment decision better.
About Company
Meesho Limited has become India’s largest e-commerce platform since its incorporation in 2015, by bringing together four key groups: buyers, sellers, logistics partners, and content creators. Through the Meesho app, the company connects buyers and sellers to sell products like fashion, apparel, personal care, and home furnishings at affordable prices.
Meesho has served as a value-focused platform by offering customers ‘Everyday Low Prices’, making online shopping accessible, affordable, and appealing. At Meesho, everything is available from low-cost unbranded items to regional and national brands that too at an affordable price range.
Moreover, Meesho has over 575,465 active sellers and 213.17 million active users as of 2025. The company uses AI/ML technology to help show customers products they’ll like, similar to window shopping in real life, making online shopping simple and fun. To ensure smooth, fast deliveries, Valmo’s logistics network works with 3rd-party delivery partners and truck operators across India.
Strengths
- Meesho is India’s largest value-focused E-commerce platform with 20+ crore annual transacting users.
- Through its IPO, the company is raising a fresh issue of ₹4,250 crores, indicating it will use these funds for its marketing and brand initiatives and cloud infrastructure, making good use of the IPO money.
- Meesho follows the Assest light low-cost model that makes them more efficient and easy to grow.
- The company has little to no debt remaining.
- The firm works on a no-commission model, which encourages sellers to join the platform.
Weaknesses
- Since 2015, the company has been making losses. Even in fiscal years 2023, 2024, and 2025, the company has reported significant losses. If the company does not control the losses or increase revenue, then it will continue to face losses in the future as well.
- Meesho mainly operates its business through connecting buyers and sellers, but if it fails to attract or keep the buyers or sellers on the platform, it can directly impact the business, cash flow, and financial condition.
- The company mostly runs on COD (Cash On Delivery) orders. Infact, in recent years, about 80% of the orders are shipped on COD, which leads to failed deliveries and more cash-handling risks.
- Over the last 3 years, the company has had a low ROE of -126%.
- Meesho has set the retail quota at only 10% means the retail investors have lower chances of getting the allotment.
Meesho IPO Review
| Reviewer | Recommendation |
| IPO Watch | May Apply |
| Axis Capital | Not Rated |
| Capital Market | Neutral |
| ICICI Direct | Apply |
| Marwadi Shares and Finance Ltd | Apply |
| SBICAP Securities Limited | Apply |
| Swastika Investmart Ltd | Apply |
| Ventura Securities Limited | Not Rated |
Meesho IPO Details
| IPO Open Date: | December 3, 2025 |
| IPO Close Date: | December 5, 2025 |
| Face Value: | ₹1 Per Equity Share |
| IPO Price Band: | ₹105 to ₹111 Per Share |
| Issue Size: | ₹5,421.20 Crores |
| Fresh Issue | ₹₹4,250 Crores |
| Offer-for-Sale | Up to 10,55,13,839 equity shares |
| Registrar | Kfin Technologies Ltd. |
| IPO Lead Managers | Kotak Mahindra Capital Co. Ltd. JP Morgan India Pvt. Ltd. Morgan Stanley India Co. Pvt. Ltd. Axis Capital Ltd. Citigroup Global Markets India Pvt.Ltd. |
| Basis of Allotment | December 8, 2025 |
| IPO Listing Date: | December 10, 2025 |
| Listing | BSE, NSE |
Financial Performance Trend Details
| Particulars (in ₹ Cr) | 30 Sep 2025 | 31 Mar 2025 | 31 Mar 2024 |
| Total Income | 5,857.69 | 9,900.90 | 7,859.24 |
| EBITDA | (551.87) | (219.59) | (230.15) |
| PAT | (700.72) | (3,941.71) | (327.64) |
| Net Worth | 968.87 | 1,561.88 | 2,301.64 |
| Borrowings | 0.00 | 0.00 | 0.00 |
Key Performance Indicator
| KPI | Values |
| RoNW | -252.37% |
| Price to Book Value | 30.16 |
| Market Capitalization | ₹50,095.75 Cr. |
Peer Comparison with the Company
| Name of the Company | Face Value (₹) | Basic EPS (₹) | Diluted EPS(₹) | RONW (%) | P/E Ratio | NAV(₹) |
| Meesho | 1 | (9.98) | (9.98) | (252.37)% | [●] | 3.68 |
| Listed Peers | ||||||
| Eternal Limited | 1 | 0.60 | 0.58 | 2.16% | 529.14 | 31.42 |
| Swiggy Limited | 1 | (13.72) | (13.72) | (30.50%) | N.A. | 40.98 |
| Brainbees Solutions Limited | 2 | (4.11) | (4.11) | (26.63%) | N.A | 91.00 |
| FSN E-Commerce Ventures Limited | 1 | 0.23 | 0.23 | 5.21% | 1,168.43 | 4.55 |
| Vishal Mega Mart Limited | 10 | 1.40 | 1.36 | 9.85% | 99.53 | 13.92 |
| Trent Limited | 1 | 43.51 | 43.51 | 27.93% | 100.87 | 153.64 |
| Avenue Supermarts Limited | 10 | 41.61 | 41.50 | 13.63% | 98.43 | 329.29 |
Promoters & Track Records, if any
- Vidit Aatrey, born on June 20, 1990, aged 35 years, is the Promoter and Chairman, Managing Director, and Chief Executive Officer of the company. He holds 472,539,149 Equity shares, representing 11.09% of the company’s pre-Offer equity share capital.
- Sanjeev Kumar, born on July 5, 1989, aged 36 years, is the Promoter and Whole-time Director and Chief Technology Officer of the company. He holds 315,675,788 shares, representing 7.41% of the company’s pre-Offer equity share capital.
Industry Peer Group P/E ratio
In the Social E-commerce industry peer group shows a wide P/E range, with the highest at 1,168.43, the lowest at 98.43, and an average of 399.28 times.
Expansion
- The proceeds raised from the fresh issue will be used towards Investment in cloud infrastructure, in MTPL, its Subsidiary.
- A portion of funds will be used to pay salaries for current and new hires in the Machine Learning, AI, and technology teams working on AI and tech development.
- Some funds will be utilized towards marketing and brand initiatives.
- Lastly, the remaining funds will be used for the company’s general corporate purposes.
Meesho IPO – Should You Apply or Not?
Meesho IPO features a strong buyer and seller growth, an asset-light model, a Zero commission model, and strong penetration in Tier-II and Tier-III markets support its future growth. However, high dependency on (Cash-on-Delivery) COD orders, intense competition, and weak financial history are the major concerns/risks of the company.
As of December 3, the GMP of the Meesho IPO is ₹51, indicating a listing gain of around 40% to 50%. Short-term investors can apply for the IPO for listing gain, given the positive market sentiment and attractive GMP. Long-term or Caveat investors evaluate intense competition, rising operational costs, and loss-making history before subscribing.
Please note:
Investors are advised to make their own decisions and apply entirely at risk. This article uses information from the company’s RHP (Red Herring Prospectus) data and online sources. If you have any queries, kindly contact the IPO Watch Team.
