IPO Bound Meesho's Revenue Nears INR 10K Cr Mark

Ecommerce unicorn Meesho has filed its updated draft red herring prospectus (DRHP) with market regulator Securities and Exchange Board of India (SEBI).

The SoftBank-backed giant’s public offer will now comprise a fresh issue of shares worth INR 4,250 Cr (nearly $483 Mn) and an offer-for-sale (OFS) component of 17.56 Cr shares (17,56,96,602 to be precise).

As per the DRHP, the Bengaluru-based unicorn reported an operating revenue of INR 9,389.9 Cr in FY25, up 23% from the INR 7,615.1 Cr reported in the year-ago period.

Meesho primarily generates revenue from online delivery of goods, display of advertisements on the platform, assurance services and other platform services.

Including total income, the startup’s revenue during the financial year ending March 2025 stood at INR 9,900.9 Cr. In the first three months of FY26, the startup posted an operating revenue of INR 2,503.8 Cr.

Despite a healthy uptick in revenues, it incurred a loss of INR 3,914.7 Cr in FY25. The company had posted a loss of INR 327.6 Cr in FY24. The 12X YoY surge incurred by the company is primarily due toone-time exceptional items, including reverse flip tax and perquisite tax, which were necessary for the company’s transition to a public structure. The reverse flip expenses alone cost the company INR 3,883 Cr. Had it not been for these expenses, the startup’s loss debloated 67% YoY to INR 108 Cr in FY25.

Breaking Down Meesho’s Expenses

For the year under review, Meesho’s total expenditure stood at INR 10,009.3 Cr, up 22% from INR 8,173.7 Cr in FY24.

Employee Benefit Expenses: The startup saw its employee benefit expense jump 12% to INR 848.1 Cr from INR 757.7 Cr, indicating an increase in employee count and disbursement of share-based payments.

Logistics and Fulfilment Expenses: Meesho saw its logistics expenses jump 24% to INR 7,352 Cr in FY25 from INR 5,926.8 Cr in the year-ago period. Logistics and fulfilment comprised almost 73% of the startup’s total expenses. This is despite the fact that most of the company’s logistics operations are managed by its in-house arm, Valmo.

Advertisements And Sales Promotion Expenses: The startup saw its total advertisement expense jump 40% to INR 643.5 Cr in FY25 from INR 459.4 Cr a year ago.

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