Meesho Limited Makes Exceptional Debut with 45.23% Premium, Lists at ₹161.20 Against Outstanding Subscription

Meesho Limited, operating multi-sided technology platform driving e-commerce in India connecting consumers, sellers, logistics partners, and content creators through marketplace segment providing order fulfilment, advertising, and seller insights services plus new initiatives including low-cost local logistics network Valmo and digital financial services platform with 706,471 annual transacting sellers and 234.20 million annual transacting users for twelve months ended September 2025 and 2,082 full-time employees, made an exceptional debut on BSE and NSE on December 10, 2025.

Meesho Limited Listing Details

Meesho IPO listed at ₹111 per share with minimum investment of 135 shares costing ₹14,985. The IPO received outstanding response with subscription of 81.76 times - retail investors at 19.89 times, QIB at 123.34 times, NII at 39.85 times (sNII at 32.28 times and bNII at 43.64 times), indicating overwhelming investor confidence in e-commerce marketplace business model despite significant losses with ₹3,941.71 crore PAT loss in FY25.

First-Day Trading Performance

Listing Price: Meesho opened at ₹161.20 representing premium of 45.23% from issue price of ₹111.00, touched high of ₹172.65 (up 55.59%) and low of ₹161.20 (up 45.23%), with VWAP at ₹168.20, reflecting exceptional market enthusiasm supported by outstanding subscription of 81.76 times despite negative earnings and aggressive valuation, indicating strong investor conviction in growth potential and market leadership.

Growth Drivers and Challenges

Growth Drivers:

• Market Leadership Position: Largest e-commerce platform in India based on placed orders and annual transacting users, comprehensive technology-driven marketplace connecting four key stakeholders, 234.20 million annual transacting users and 706,471 annual transacting sellers demonstrating massive scale and reach.
• Operational Growth: Revenue increased 26% from ₹7,859.24 crore in FY24 to ₹9,900.90 crore in FY25, focus on cost efficiency and technological innovation enabling positive cash flow position while strategically investing in new business verticals, integrated logistics network Valmo with third-party providers ensuring efficient order fulfilment.
• Strategic Initiatives: Investment in cloud infrastructure and AI/machine learning technology development, marketing and brand building initiatives, funding for inorganic growth through acquisitions and strategic initiatives, expanding digital ecosystem through new initiatives including low-cost local logistics and digital financial services.

Challenges:

Significant Losses: Loss of ₹3,941.71 crore in FY25 representing massive 1103% deterioration from loss of ₹327.64 crore in FY24, negative RoNW of 252.37%, persistent losses across all reported periods indicating business model profitability challenges.

Profitability Path Uncertain: Despite positive cash flow and revenue growth, bottom line kept sliding southward across last three fiscal years, operating in highly competitive e-commerce segment against established players, significant capital requirements for technology development, marketing, and logistics infrastructure, minimal promoter holding at 14.6% post-IPO indicating limited skin in game.

Utilisation of IPO Proceeds

Technology Infrastructure: ₹1,390.00 crore for investment in cloud infrastructure in subsidiary MTPL, ₹480.00 crore for payment of salaries for machine learning, AI, and technology teams for AI and technology development.
Marketing and Growth: ₹1,020.00 crore for investment in subsidiary MTPL towards marketing and brand initiatives, ₹1,197.83 crore for funding inorganic growth through acquisitions, strategic initiatives, and general corporate purposes.

Meesho Financial Performance

• Revenue: ₹9,900.90 crore for FY25, growth of 26% from ₹7,859.24 crore in FY24, reflecting expanding marketplace with growing transacting users and sellers, increasing gross merchandise value, and strengthening platform economics despite competitive pressure.
• Net Loss: Loss of ₹3,941.71 crore in FY25, massive deterioration of 1103% from loss of ₹327.64 crore in FY24, primarily due to increased investments in technology, marketing, logistics infrastructure, and expansion initiatives to maintain market leadership position.
• Financial Metrics: Negative RoNW of 252.37%, price-to-book of 30.16x, post-issue EPS of negative ₹3.11, P/E not meaningful due to losses, zero debt, net worth of ₹1,561.88 crore, and market capitalisation of ₹77,264.80 crore representing one of the largest IPO listings in Indian e-commerce sector.