The upcoming initial public offering of Meesho Ltd has sparked keen interest among market watchers, as many expect strong long-term potential from the rapidly expanding e-commerce platform.
SBI Securities, in a detailed IPO note, has issued a subscribe for long-term investment horizon recommendation, citing Meesho’s large and growing user base, technology-first business model and improving cash flows.
₹5,421-cr Meesho IPO opens tomorrow
The ₹5,421 crore IPO will open tomorrow, December 3, 2025, at a price band of ₹105-111 per share, valuing Meesho at ₹50,096 crore ($5.6 billion) at the upper end. The market lot size is 135. The IPO concludes on December 5, 2025.
The offer comprises a fresh issue of ₹4,250 crore and an offer for sale of up to 10.55 crore shares by existing shareholders.
Meesho plans to utilise proceeds for investment in cloud infrastructure; marketing and brand initiatives as well funding inorganic growth through acquisitions and other strategic initiatives and general corporate purposes. As per the draft IPO papers, the SoftBank-backed e-commerce company will use ₹480 crore from the public offer proceeds towards payment of salaries of AI and technology teams.
Kotak Mahindra Capital Company Ltd, JP Morgan India Pvt Ltd, Morgan Stanley India Company Pvt Ltd, Axis Capital, Citigroup Global Markets India Pvt Ltd are the book running lead managers, and KFin Technologies is the registrar to the issue.
The stock will likely debut on bourses on December 12, 2025.
Brokerages highlight scale, tech strengths and profitability challenges
SBI Securities noted that the company’s multiple self-reinforcing flywheels—spanning commerce, logistics and content—create network effects that enhance platform liquidity. The brokerage highlighted Meesho’s significant scale, including roughly 23 crore annual transacting consumers and over 7 lakh sellers as of the trailing twelve months ending September 2025.
The brokerage observed Meesho’s tech-driven approach, including integration of GenAI tools to boost engineering productivity, as a key differentiator. It noted Meesho’s focus on “everyday low prices,” which has enabled it to attract mass-market consumers without relying heavily on festival-driven discounting. Despite reporting net losses, the company has turned positive free cash flow over the past two financial years, a development brokerages see as a positive shift in its financial trajectory
However, the brokerage warned that the path to profitability remains a key monitorable, especially as Meesho continues to invest aggressively in technology, logistics and brand expansion.
Key risks include customer and seller retention, operational dependence on third-party logistics partners and rising competition from established e-commerce giants and offline retailers.
Brokerages also flagged vulnerabilities such as technology infrastructure outages, operational inefficiencies linked to cash-on-delivery orders, intense competitive pressures.
Published on December 2, 2025
