The Upcoming IPO & the key highlights and future projections of Meesho

Educational insights
1

Meesho’s recent announcement about their first-ever profit and the upcoming IPO is quite interesting, especially given the current market scenario. Can someone break down the key highlights and future projections of Meesho as they prepare for this significant leap?

2

Certainly! Meesho’s trajectory in the e-commerce domain, especially amidst the current
economic climate, is nothing short of noteworthy. Let’s dive deep into the details:

  1. Meesho’s Milestones:
    ● First-Ever Profit: Meesho has recently reported its maiden profit, a significant milestone
    since its inception in 2015.
    ● E-commerce Competition: Competing alongside giants like Amazon and Flipkart,
    Meesho has carved a niche by targeting smaller towns and cities with unbranded items
    such as clothing and cosmetics.
    ● Valuation: As per PitchBook data, Meesho’s last reported valuation stands at a
    staggering $7 billion.

  2. Financial Details:
    ● Revenue: Between January and June, the company reported revenue exceeding $400
    million. By year-end, Meesho projects this number to cross the $800 million mark.
    ● Profit Specifics: Though exact figures weren’t shared, Chief Financial Officer Dhiresh
    Bansal mentioned that the profit margin remains in single digits. However, he expressed
    optimism in maintaining this upward profitability trend.

  3. Upcoming IPO:
    ● Timeline: Meesho plans to list in the stock market within the next 12-18 months.
    ● Preparation: According to Bansal, while Meesho possesses growth, scale, and
    profitability apt for an IPO, the company also aims to establish a consistent track record
    for market investors’ evaluation.

  4. Company Background:
    ● Founders: IIT graduates Vidit Aatrey and Sanjeev Barnwal founded Meesho.
    ● Performance Metrics: The platform has registered over 1 billion orders in the previous
    year.

  5. Current Market Context:
    Meesho’s profitability is a beacon of hope, especially when many Indian startups are grappling
    with fund-raising challenges due to escalated interest rates and a tech market slump, leading to
    extensive layoffs and aggressive cost-cutting.
    In summation, Meesho’s journey, from its strategic market positioning to its recent financial
    accomplishments, paints a promising picture. Their imminent IPO would be an event to watch,
    given its potential to reshape the dynamics of the Indian e-commerce landscape.