Meesho converts to public entity ahead of IPO
In April this year, Meesho changed its legal name from Fashnear Technologies Private Limited to Meesho Private Limited ahead of the planned initial public offering (IPO)
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E-commerce firm Meesho, which is planning to get listed on the Indian stock market, has converted itself into to public entity from Private Ltd. In April this year, Meesho changed its legal name from Fashnear Technologies Private Limited to Meesho Private Limited ahead of the planned initial public offering (IPO). And now, the Bengaluru-based company has converted from 'private limited' to 'public limited', The Economic Times reported.
Additionally, Meesho is also in the process of flipping back its domicile from the US to India. The company has applied to the National Company Law Tribunal (NCLT) for the same.
Meesho, which is backed by investors SoftBank, Prosus, and Tiger Global, has appointed Kotak Mahindra Capital, Citi, JP Morgan, and Morgan Stanley as merchant bankers for its public issue.
Last week, the company's board approved a plan to allot Rs 411 crore bonus shares to existing shareholders.
Founded in 2015 by IIT Delhi alumni Vidit Aatrey and Sanjeev Barnwal, Meesho has emerged as India’s third-largest e-commerce platform by Gross Merchandise Value (GMV). Financially, Meesho has made strong strides toward profitability. The company slashed its net loss by 82% to Rs 304.9 crore in FY24, down from Rs 1,675 crore in FY23. Operating revenue also surged by 32.8% year-on-year to Rs 7,614.9 crore, underlining a robust growth trajectory ahead of its public listing. The company generated operating cash flow of Rs 232 crore for the year, driven by rising consumption and the expanding adoption of e-commerce, particularly in Tier 2 and smaller towns.
The Gen Z demographic has become a significant driver of growth for the ecommerce platform, now accounting for one-third of its total user base. This trend signals a broader shift towards value-conscious, high-quality products, particularly in smaller towns, reshaping India’s e-commerce landscape.
