The approval came after an extraordinary general meeting of the Bengaluru-based company.
Meesho, which completed its domicile shift from the US to India last week, will file its draft IPO prospectus under the confidential route of the Securities and Exchange Board of India (Sebi), the documents showed.
Separately, Meesho’s shareholders approved the plan to designate founder Vidit Aatrey as the chairman, managing director and CEO of the company.
“The proposed offering will include a fresh issue of equity shares aggregating up to Rs 4,250 crore and an offer for sale of equity shares by certain existing shareholders of the company,” the filing said.
This is the final step before the company makes its filings with the stock markets regulator.
Investors Elevation Capital, Peak XV Partners and Prosus are among the largest institutional shareholders in Meesho, owning 13-15% stake each. Japanese investor SoftBank owns close to 10% stake in the etailer focused on value retailing at lower price points.
Other investors in the company include WestBridge Capital and Fidelity.
Meesho’s last funding came through a $550-million round, which mainly comprised secondary transactions, through which it was valued at around $3.9 billion, down from its peak valuation of $5 billion. This round saw new investors such as Tiger Global, Think Investments and Mars Growth Capital participating in addition to existing backers such as Peak XV Partners and WestBridge Capital.
Regulatory filings also showed that Meesho has expanded its 2024 employee stock option plan by adding 1.1 million options, bringing the total pool to 7.5 million stock options.
A presentation by its investor Prosus this week showed that in 2024-25, Meesho clocked more than 1.8 billion orders, a 37% year-on-year growth from 1.3 billion orders in the previous financial year.
With this IPO, Meesho could emerge as the first horizontal ecommerce company to list on the bourses in India. Its rival firm, Walmart-owned Flipkart, is also in the process of shifting its domicile to India, from Singapore, ahead of a planned public issue next year.
A horizontal ecommerce company is one that offers a wide variety of products, targeting a broad range of consumers, unlike a vertical marketplace, which focuses on a specific segment.
A slew of internet companies and new-age brands are planning to go public. Groww, Pine Labs, PhysicsWallah, Urban Company, Shiprocket, Boat, Wakefit and Capillary Technologies have filed their papers with Sebi this year, while omnichannel eyewear retailer Lenskart and logistics firm Shadowfax are planning to do so soon.
