Meesho Transitions to Public Company Ahead of IPO

E-commerce marketplace Meesho has received board approval to convert into a public limited company, marking a crucial milestone as it prepares for a potential initial public offering (IPO), according to filings with the Registrar of Companies (RoC). The transition from a private limited to a public limited company is a standard step for firms planning to go public. Notably, omnichannel eyewear retailer Lenskart also made a similar move recently in the lead-up to its IPO.

Headquartered in Bengaluru, Meesho is also redomiciling its operations from the US to India. The company has filed an application with the National Company Law Tribunal (NCLT) for this purpose. In addition, its board recently approved changing the name of its Indian entity from Fashnear Technologies Pvt Ltd to Meesho Pvt Ltd. Upon completion of this redomiciling process, the newly named Meesho Ltd will serve as the parent entity for its marketplace operations.

In its RoC filing, Meesho stated:

“The company is currently exploring various strategic alternatives for its long-term growth and value enhancement, which may include, at an appropriate time, an initial public offering of its equity shares and listing on a recognised stock exchange in India.”
It further clarified that while no formal IPO process has been initiated or approved by the board, Meesho aims to stay IPO-ready from a regulatory and compliance perspective.

The company, which counts SoftBank, Prosus, and Tiger Global among its backers, has already appointed Kotak Mahindra Capital, Citi, JP Morgan, and Morgan Stanley as merchant bankers for its proposed public issue.

In a recent board meeting, Meesho also approved the issuance of ₹411 crore worth of bonus shares to its existing shareholders.

Meesho’s annual report, released in March, showed a 34% year-on-year increase in orders to 1.3 billion between April and December 2024, matching the total number of orders for the entire fiscal year 2024. As of December 31, the platform had 187 million unique annual transacting users, reflecting a 26% rise year-on-year.

According to a March report by brokerage firm CLSA, Meesho currently operates at a gross merchandise value (GMV) run rate of $6.2 billion, with an expected compound annual growth rate (CAGR) of 26% over the next six years. The platform holds a 37% market share in order volume for calendar year 2024, though its share of GMV is estimated at 8.5%, the report noted.

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