Indian e-commerce major Meesho is gearing up for its stock market debut. According to a Moneycontrol report, the SoftBank-backed e-commerce platform plans to raise $1 billion through an Initial Public Offering (IPO), targeting a valuation of $10 billion.
Meesho enlists bankers for IPO
The Bengaluru-headquartered e-commerce company has reportedly enlisted Morgan Stanley, Kotak Mahindra, and Citi as the lead bankers for its IPO, with the listing expected this year. Sources quoted in the report also mentioned that JP Morgan could be added to the IPO syndicate if talks materialise.
Meesho plans Diwali D-Street debut
Meesho, which has emerged as a disruptor in India’s e-commerce segment, reportedly plans to debut on Dalal Street around Diwali. The company is expected to file the documents, including the Draft Red Herring Prospectus (DRHP), with market regulator SEBI as early as this week.
IPO race: Meesho to beat Flipkart?
If everything goes according to plan, Meesho could manage to beat its arch-rival Flipkart in the race to the stock market. While Meesho was founded in 2015, Flipkart was established almost a decade earlier in 2007. However, Flipkart was acquired by American retail giant Walmart in 2018 and is now awaiting approval from its American parent to be listed in India.
Meesho’s Business Roadmap
Meesho’s parent company, Fashnear Technologies Private Limited, was founded by Vidit Aatrey and Sanjeev Barnwal, graduates of IIT Delhi, in December 2015. Unlike other e-commerce giants like Flipkart and Amazon, Meesho heavily relies on social media platforms such as WhatsApp, Instagram, and Facebook for sales.
According to an ET Retail report earlier this month, Meesho plans to increase the share of unbranded products on its platform. The e-commerce company aims to achieve a balance between branded and unbranded products and is targeting a 50% increase in sales over the next year through this strategy.
