Investment for cloud infrastructure in Meesho Technologies Pvt. Ltd., their Subsidiary (₹ 1,390 Cr.)
Payment of salaries of existing and replacement hires for Machine Learning, AI and technology teams (₹ 480 Cr.)
Investment in MTPL, Subsidiary, for marketing and brand initiatives (₹ 1,020 Cr.)
Funding inorganic growth through acquisitions and other strategic initiatives and general corporate purposes
Our View
Incorporated in 2015, Meesho operates a value-focused, asset-light e-commerce marketplace positioned on low-ASP categories such as fashion, home & kitchen, beauty, and lifestyle. Its proposition is built on affordability and unbranded assortment targeted at Tier 2+ India, supported by a discovery-led app experience. Meesho has reduced the average cost charged to sellers and embedded Gen AI capabilities across functions to enhance scale and productivity.
Risks to consider include intense competition, losses since inception, dependence on third-party logistics, regulatory risk for e-commerce platforms, inconsistent product quality across suppliers, delivery delays in some regions, high Cash-on-Delivery (CoD) share (>70% of orders in HYFY26) which reduces successful deliveries and increases cash handling risk, and the possibility of failing to attract and retain sellers.
On the financial front: topline grew at a CAGR 28% between FY23-25, while the bottom line remained negative since inception with slight improvement in Adjusted EBITDA. Operating cash flow turned positive at ₹ 539 Cr., and Free Cash Flow at ₹ 591 Cr., the largest among scaled listed e-commerce companies in India in the last 12 months ended September 30, 2025.
The issue is priced at a P/BV of 48.68 based on NAV of Rs. 2.28 as at HYFY26, and is a negative price on the basis of continued losses. Given India’s e-commerce growth potential and Meesho’s leadership on placed orders and annual transacting users, we believe high risk-taking investors may consider subscribing for a long-term horizon.
Financial Snapshot & Valuation
Revenue growth (FY23-25): CAGR ~28%
Operating cash flow: ₹ 539 Cr. (positive)
Free cash flow: ₹ 591 Cr.
P/BV: 48.68 (NAV Rs.2.28 at HYFY26)
Key Risk Factors (Summary)
Intense competition from other marketplaces and platforms
Company has been loss-making since inception
Dependence on third-party logistics and delivery partners
Regulatory changes and e-commerce-specific rules
High Cash-on-Delivery share and associated cash handling risks
Product quality inconsistency across unbranded suppliers
Frequently Asked Questions (FAQs)
What are the Meesho IPO dates?
The Meesho IPO opens on December 3, 2025 and closes on December 5, 2025.
What is the price band for the Meesho IPO?
The price band is ₹ 105 to ₹ 111 per equity share.
What is the lot size for the Meesho IPO?
The minimum lot size is 135 shares, and applications must be in multiples of the lot size.
How much is the minimum and maximum investment?
Minimum investment: ₹ 14,985 (135 shares)
Maximum retail investment: ₹ 1,94,805 (1,755 shares)
What is Meesho’s business model?
Meesho operates an asset-light, value-focused e-commerce marketplace offering low-cost unbranded, regional and branded products, supported by a zero commission structure for sellers.
Is Meesho profitable?
No, Meesho remains loss-making since inception, though operating cash flow has turned positive and adjusted EBITDA has shown improvement.
What are the main risks associated with the Meesho IPO?
Major risks include intense competition, dependence on logistics partners, regulatory uncertainty in e-commerce, high Cash-on-Delivery usage, and inconsistent product quality from suppliers.
Should I subscribe to the Meesho IPO?
Sushil Finance’s view: Long-term Subscribe for high-risk investors, considering growth potential, business scale, and associated risks.
Brief Financials
| PARTICULARS |
₹ in Million |
As at
June 30, 2025 |
FY ‘25 |
FY ‘24 |
FY ‘23 |
| Total Income |
58,576.93 |
99,009.01 |
78,592.42 |
58,976.91 |
| Total Expenditure |
62,909.07 |
100,093.30 |
81,737.75 |
75,695.93 |
| Adjusted EBITDA |
(5,518.72) |
(2,195.91) |
(2,301.53) |
(16,937.33) |
| Loss before Tax |
(5,705.95) |
(14,548.63) |
(3,276.41) |
(16,719.02) |
| Loss after Tax |
(7,007.18) |
(39,417.05) |
(3,276.41) |
(16,719.02) |
| E.P.S. (Diluted) |
(1.65)* |
(9.98) |
(0.87) |
(4.43) |
| P/E (x) (Diluted) |
- |
- |
- |
- |
| RONW (%) |
(72.32)* |
(252.37) |
(14.24) |
(65.61) |
*Not annualised for the three months ended June 30, 2025.
PRICE CHART (@ ₹ 111) (Retail Category)
| LOT SIZE |
| Amount |
| 135 |
14,985 |
| 270 |
29,970 |
| 405 |
44,955 |
| 540 |
59,940 |
| 675 |
74,925 |
| 810 |
89,910 |
| 945 |
104,895 |
| 1,080 |
119,880 |
| 1,215 |
134,865 |
| 1,350 |
149,850 |
| 1,485 |
164,835 |
| 1,620 |
179,820 |
| 1,755 |
194,805 |
HNI Payment Chart
| Category |
| No. of Shares |
Minimum Bid Lot Amount (Rs.) |
| Small HNI |
1,890 |
209,790 |
| Big HNI |
9,045 |
1,003,995 |
Indicative Time Table
| Tentative Events |
| Indicative Dates |
| Finalisation of Basis of Allotment with the Designated Stock Exchange |
8/12/2025 |
| Initiation of refunds/unblocking ASBA Fund |
9/12/2025 |
| Credit of Equity Shares to demat accounts of Allottees |
9/12/2025 |
| Commencement of trading of the Equity Shares on the Stock Exchanges |
10/12/2025 |
Disclaimer:
The content provided in this blog is for informational and educational purposes only and should not be construed as investment, legal, or tax advice. While Sushil Finance makes reasonable efforts to ensure accuracy and reliability of the information, we do not guarantee its completeness or timeliness. Readers are advised to consult with their financial advisor before making any investment decisions. Sushil Finance shall not be held responsible for any direct or indirect loss arising from use of this content. Investments in securities are subject to market risks. Read all scheme-related documents carefully before investing.
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