Meesho Ipo: Morgan Stanley, Kotak, Citi Appointed As Bankers; When Will $1 Billion Public Offer Be Released?
E-commerce platform Meesho, the SoftBank-subsidized homegrown enterprise, is planning to launch its initial public offering (IPO) later this year to raise around $1 billion, according to a Moneycontrol report citing people aware of the trends.
"…talks are progressing, and Meesho has already picked Morgan Stanley, mahindra BANK' target='_blank' title='kotak mahindra-Latest Updates, Photos, Videos are a click away, CLICK NOW'>kotak mahindra Capital, and Citi as advisers for its IPO," one of the sources advised Moneycontrol.
Aiming for a marketplace Debut earlier than Flipkart.
If Meesho efficiently lists in 2024, it will outpace its long-standing competitor, flipkart, which has been getting ready for its own public listing but is anticipating a final choice from its parent company, Walmart.
Meanwhile, Meesho is aiming to elevate $1 billion, and bankers have pitched a valuation of $10 billion, a 2nd supply informed Moneycontrol. "It is probable that even JP Morgan can be delivered to the IPO syndicate if talks materialize," the supply brought.
Will the Meesho IPO be launched?
Meesho is expected to file its draft IPO files within the coming weeks and will debut on the stock exchanges around Diwali, probably between september and October, another source told Moneycontrol.
The organization, however, should first hold its headquarters flip from Delaware, US, to India—a procedure in its final stages. As a part of this transition, Meesho is anticipated to incur a tax liability of approximately $300 million, as previously pronounced.
Valuation and Increase Trajectory
Meesho's capacity IPO valuation of $10 billion might mark an enormous soar from its $3.9 billion valuation in 2024, representing a 2.5X boom. The business enterprise might be a part of different indian startups such as PhysicsWallah (PW), Ather, and Lenskart in pursuing public market valuations significantly higher than their closing personal funding rounds.
At the same time as a few new-age companies like ola Electric, MobiKwik, and FirstCry listed at valuations lower than anticipated, Meesho seems poised to command a top class, given its sturdy growth and enhancing profitability.
Notwithstanding coming into the indian e-trade market incredibly late in 2015, Meesho has multiplied rapidly, in particular through tapping into Tier 3 and smaller markets, which cater to value-conscious purchasers. This approach has helped it gain an enormous market share, even in opposition to deep-pocketed competitors like flipkart and Amazon.
Meesho's revenue surged from ₹3,240 crore in FY22 to ₹5,735 crore in FY23 and similarly to ₹7,615 crore in FY24. At the same time, its internet losses have dramatically reduced—from ₹3,248 crore in FY22 to simply ₹305 crore in FY24, highlighting its advanced monetary health.
With its IPO, Meesho aims to keep this growth trajectory, offering investors a stake in India's booming e-commerce region.
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