The Indian e-commerce landscape is set for a major milestone as Meesho prepares to go public later in 2025, aiming to raise approximately $1 billion through an initial public offering (IPO). The Bengaluru-based platform, backed by SoftBank and other marquee investors, has taken significant steps toward its public market debut, marking a crucial moment for India's startup ecosystem.

Strategic Preparations for Market Entry

Meesho has appointed Morgan Stanley, Kotak Mahindra Capital and Citi as its IPO advisers, with discussions ongoing to include JP Morgan in the syndicate. This high-profile banking consortium reflects the scale and ambition of what could become one of India's largest tech IPOs in recent years.

The company has been methodically preparing for its public offering by making several strategic corporate moves. The board at Meesho passed a special resolution to change its name from "Meesho Private Limited" to "Meesho Limited", transitioning into a public company structure ahead of the listing.

Reverse Flip to India Completed

In a significant development, the ecommerce major received approval from the National Company Law Tribunal (NCLT) to shift its headquarters back to India from the US. This "reverse flip" operation positions Meesho as an Indian company for regulatory and tax purposes, aligning with the government's preference for domestic listings.

Meesho completed its reverse-flip to India and is pressing ahead with DRHP filing for its upcoming IPO. The move demonstrates the company's commitment to listing on Indian exchanges rather than pursuing overseas markets.

Financial Performance and Market Position

In its annual report, Meesho claimed to be the first horizontal Indian e-commerce firm to achieve profitability in fiscal 2024, generating a positive free-cash-flow of ₹197 crore for the year. This profitability milestone significantly strengthens its IPO prospects, as investors increasingly focus on sustainable business models.

The company has also implemented employee incentive programs, with Meesho approving a plan to issue ₹411.4 crore worth of bonus shares in May 2025. Such moves typically indicate confidence in the company's growth trajectory and help retain key talent ahead of public listing.

IPO Timeline and Market Expectations

Indian e-commerce platform Meesho plans to confidentially file for an initial public offering in Mumbai in the coming weeks, according to recent reports. The e-commerce platform is expected to file draft IPO papers in the coming weeks, and may look to hit Dalal Street around Diwali this year.

Industry sources suggest bankers have pitched a valuation of $10 billion for the offering, though this was 20% to 30% lower than the $1 Bn IPO that the company was mulling earlier. The adjusted expectations reflect current market conditions and investor sentiment toward tech stocks.

Growth Strategy and Future Outlook

Meesho plans to increase its seller base to 10 million small businesses by 2027, which represents a substantial growth from its current figure of 1.3 million, reflecting a tenfold expansion. This ambitious growth target underscores the company's strategy to deepen its penetration in India's vast small business ecosystem.

The timing of Meesho's IPO comes as India's startup ecosystem continues to mature, with several unicorns eyeing public markets. The company's focus on serving small businesses and enabling social commerce positions it uniquely in the competitive e-commerce landscape dominated by Amazon and Flipkart.

Market Impact and Industry Implications

Meesho's IPO represents more than just another tech listing—it symbolizes the evolution of Indian e-commerce from marketplace models to community-driven social commerce platforms. The company's success in achieving profitability while maintaining growth could set new benchmarks for other startups considering public offerings.

With regulatory approvals in place and banking partners secured, Meesho appears well-positioned for its market debut. The IPO will be closely watched by investors, competitors, and industry observers as a barometer for investor appetite in Indian consumer internet companies.

As the company moves closer to its public offering, market participants will be keenly watching for the release of its draft red herring prospectus (DRHP), which will provide detailed insights into its financial performance, business model, and growth prospects.

The success of Meesho's IPO could potentially pave the way for other Indian unicorns to accelerate their public market plans, making 2025 a pivotal year for India's startup ecosystem.