In a major move before its expected initial public offering (IPO), Indian e-commerce platform Meesho has received approval from its shareholders to issue 411.4 crore bonus shares. This strategic step is part of Meesho’s broader plan to restructure its equity and strengthen its corporate framework. The company aims to prepare its finances and governance in the best way possible before entering the public markets.
Issuing bonus shares is a common approach for companies preparing for an IPO. It allows a firm to increase the number of outstanding shares without asking existing shareholders to pay extra. This helps improve liquidity, attract more investors, and balance the shareholding pattern. For Meesho, this move shows strong planning toward building a better and stronger base for the upcoming IPO.
Meesho plans to raise around ₹8,600 crore (approximately $1 billion) through its IPO. According to reports, the company is looking at a valuation of around $10 billion. To support this massive public offering, Meesho has already brought in top financial institutions as its lead managers. These include Morgan Stanley, Kotak Mahindra Capital, and Citi. Discussions are also ongoing to add JP Morgan to the group of advisors. The IPO is expected to take place around Diwali 2025, making Meesho one of the first major Indian e-commerce startups to go public before competitors like Flipkart.
Along with preparing for its IPO, Meesho has also made important structural changes. One major step was changing the name of its Indian parent company from Fashnear Technologies Private Limited to Meesho Private Limited. This move aligns the legal name of the company with its brand, helping in brand consistency and corporate identity.
Meesho is also working on simplifying its ownership structure. It has filed an application with the National Company Law Tribunal (NCLT) to merge its Indian operations with its US-based parent entity. This reverse merger will help bring all operations under one umbrella and make compliance and governance easier once the company is listed.
On the financial side, Meesho has shown strong growth in recent years. In FY24, the company’s operating revenue grew by 33% to reach ₹7,615 crore, up from ₹5,735 crore in the previous year. More importantly, Meesho has managed to cut its adjusted losses by 97%, bringing them down to just ₹53 crore from ₹1,569 crore in FY23. This remarkable recovery shows that the company is on the right track, focusing on sustainable growth and financial discipline.
In another important move, Meesho’s co-founders Vidit Aatrey and Sanjeev Kumar recently exercised their employee stock options (ESOPs). The board approved the allotment of over 27 lakh equity shares to both founders, which are valued at about ₹1,023 crore (approximately $120 million). This shows that the leadership has strong confidence in the company’s future and wants to stay closely involved as stakeholders.
As an e-commerce platform, Meesho has carved out a niche for itself among value-driven customers, especially in Tier 2 and Tier 3 cities. Its affordable offerings and reseller-friendly model make it a popular choice among small entrepreneurs and home-based sellers. The company also operates its own logistics network, Valmo, which handles more than 50% of Meesho’s orders. This boosts efficiency and helps Meesho keep delivery times and costs under control.
By issuing bonus shares and planning an IPO at such a large scale, Meesho is sending a strong signal to the market. It wants to expand further, invest in its technology infrastructure, build more logistics capabilities, and possibly expand its international presence. The IPO will also provide an exit opportunity for early investors while opening the doors for new investors to become part of Meesho’s growth journey.
To summarize, Meesho’s decision to issue 411.4 crore bonus shares is a bold and strategic step toward a highly awaited ₹8,600 crore IPO. With strong backing from global banks, a clear financial growth story, and significant corporate restructuring, Meesho is aiming to become one of the most successful Indian IPOs in recent years.
