THE WHAT? Meesho is preparing an IPO of up to US$606 million as it looks to scale its low-cost marketplace across India’s smaller towns and invest in infrastructure and technology.
THE DETAILS The SoftBank-backed platform will offer shares priced between 105–111 rupees, with both existing investors and the company selling stock. Meesho has built its model around zero-commission sellers and ultra-low-priced goods, drawing nearly 90% of orders from Tier 2 and Tier 3 cities.
Revenue rose 23% to 93.9 billion rupees in the last fiscal year, though losses widened due to redomiciling charges. The company plans to use proceeds for acquisitions, cloud and AI investment, and marketing as competition from Amazon, Flipkart, and value retailers intensifies.
THE WHY? Additional capital will support Meesho’s efforts to defend and grow its position in India’s fast-expanding value e-commerce segment.
Source: Bloomberg
