E-commerce firm Meesho notches US$8.8 billion valuation in blockbuster India debut

[BENGALURU] Shares of e-commerce firm Meesho jumped about 58 per cent in their debut on Wednesday (Dec 10), giving the company a valuation of 789.3 billion rupees (S$11.4 billion) and signalling strong demand for India’s mass-market fashion and lifestyle segment.

The stock listed at 162.5 rupees on the National Stock Exchange of India and hit 175 rupees, against an issue price of 111 rupees.

While Meesho competes with giants such as Amazon.com and Walmart-owned Flipkart in India’s online retail market, it has carved out a niche by offering low-priced products without charging sellers a commission.

“Meesho has a few levers to grow its earnings. They currently do not charge any commission, and advertising revenue as a percentage of net merchandise value is 2.5 per cent compared to 5 to 10 per cent globally,” said Sunny Agrawal, head of fundamental equity research at SBICAPS Securities.

The company, backed by Softbank and Peak XV Partners, received bids worth about US$28 billion for its US$604 million initial public offering (IPO) amid strong interest from institutional buyers. Its listing follows strong debuts from technology-focused peers Groww and PhysicsWallah in a market where more than 300 IPOs have raised US$19.26 billion through early December, LSEG data showed.

India’s IPO fundraising in 2025 is expected to surpass last year’s record US$20.5 billion, marking a second straight milestone year.

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Analysts said that the sharp rise in Meesho’s shares reflects appetite for fast-growing consumer platforms but leaves limited room for new investors.

This is a “milestone moment for the homegrown e-commerce sector” in India, said Dhiraj Relli, managing director and chief executive officer of HDFC Securities. REUTERS