Meesho IPO Review
1) About the Company
Meesho Ltd., incorporated in 2015, is a multi-sided technology platform powering India’s fast-expanding value-led digital commerce ecosystem. The company connects consumers, sellers, logistics partners and content creators, enabling low-cost, wide-reach e-commerce across India. Its primary business is the zero-commission marketplace, supported by seller tools, logistics integration and advertising solutions. Meesho has also diversified into new initiatives including logistics for daily essentials and digital financial services. As of June 30, 2025, the platform had 5.75 lakh+ sellers, 213 million+ transacting users, and a nationwide fulfilment network through its logistics arm Valmo.
2) Financials & Key Parameters
Financial Information (Rs. crore)
| Period Ended | 30 Jun 2025 | 31 Mar 2025 | 31 Mar 2024 | 31 Mar 2023 |
|---|---|---|---|---|
| Assets | 6,049.60 | 7,226.09 | 4,160.99 | 3,853.35 |
| Total Income | 2,629.96 | 9,900.90 | 7,859.24 | 5,897.69 |
| Profit After Tax | -289.36 | -3,941.71 | -327.64 | -1,671.90 |
| EBITDA | -167.45 | -219.59 | -230.15 | -1,693.73 |
| Net Worth | 1,322.11 | 1,561.88 | 2,301.64 | 2,548.31 |
| Reserves & Surplus | -21.88 | -16.50 | -2.01 | 5.87 |
| Total Borrowing | 0.00 | 0.00 | 0.00 | 0.00 |
Key Performance Indicator (KPI)
| KPI | Value |
|---|---|
| RoNW | -252.37% |
3) Peer Comparison
| Company | Nature | Revenue (FY25) | Profitability | Comments |
|---|---|---|---|---|
| Meesho | Value e-commerce | Rs. 9,900 Cr | Loss-making | High growth, negative margins |
| Nykaa | Beauty/lifestyle e-com | Rs. 6,385 Cr | Profitable | Premium positioning |
| Zomato | Food delivery + quick commerce | Rs. 12,114 Cr | Profitable FY25 | Strong scale economics |
| Mamaearth | D2C beauty | Rs. 1,919 Cr | Profitable | Brand-led model |
| Flipkart (unlisted) | Horizontal e-commerce | >Rs. 55,000 Cr | Loss-making | Cash-intensive, large ecosystem |
Summary:
Meesho leads the value-commerce category but remains in heavy investment mode, unlike peers such as Nykaa or Zomato which have turned profitable. Meesho’s user and seller growth, however, outpaces most listed digital platforms.
4) Industry Scenario
India’s e-commerce market is undergoing rapid expansion driven by Tier-2/3 adoption, increasing smartphone penetration, and preference for value-led online shopping. Social commerce and low-cost marketplaces are growing faster than premium platforms. Logistics optimisation and hyperlocal delivery models are reshaping fulfilment economics. Competition is intense across horizontal players, vertical specialists and emerging short-video commerce channels. Companies with scale, cost efficiency and strong seller ecosystems are likely to dominate long-term.
5) Valuation View
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Price band: Rs. 105–111
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IPO size: Rs. 5,421.20 crore (Fresh + OFS)
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Latest annualised EPS: loss-making, so PE is not meaningful.
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Valuation must be viewed on Price-to-Sales and growth trajectory rather than earnings.
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At the upper price of Rs. 111, market cap would imply a rich P/S multiple versus other loss-making tech peers, justified only if Meesho sustains high GMV growth and moves closer to EBITDA breakeven.
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Expected oversubscription: Very strong QIB demand, moderate NII, selective Retail interest because of Meesho’s brand visibility but loss-making profile.
6) Final Verdict
Meesho is a scale-driven, high-growth digital commerce platform with deep penetration in value-focused categories and strong user/seller expansion. The company operates in a massive addressable market and continues to show operating efficiency improvements. However, profitability remains distant, net worth has eroded sharply, and competitive intensity is high across e-commerce and social commerce ecosystems. The IPO is suited for investors who understand high-growth, high-risk digital businesses. Listing response will depend heavily on QIB sentiment, revenue momentum and expectations of future breakeven.- APPLY
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