Meesho expects a valuation of $6 billion at its initial public offering in December

E-commerce platform Meesho Ltd., which plans to launch its initial public offering in the first half of December, is targeting a valuation of about 530 billion rupees ($6 billion), according to people familiar with the matter.It was created by SoftBank Group Corp. backed company is in talks with SBI Funds Management Ltd. for a pre-IPO placement, the people said, asking not to be identified because the information is private. The potential placement could change the size of the IPO, estimated at around Rs 60 billion, they said.

The offering will consist of a fresh issue of shares worth Rs 42.5 billion and an offer for sale of 175.7 million shares by existing investors, according to the draft prospectus from Bengaluru-based Meesho.

Meesho, an online marketplace popular in smaller Indian cities, joins a growing list of companies tapping into India’s booming IPO market. Companies have already raised nearly $19.5 billion this year, following a record $21 billion in 2024, according to data from Bloomberg.

Deliberations are ongoing and details including the timing and size of the deal could still change, the people said. Representatives for Meesho and SBI Funds did not immediately respond to requests for comment.

Meesho generated 10.32 billion rupees in free cash flow in the year ended March 2025, the highest among listed e-commerce companies in India, the company said in a statement this week. Kotak Mahindra Capital Co., Axis Bank Ltd. and the local units of JPMorgan Chase & Co., Morgan Stanley and Citigroup Inc. advising on the IPO, according to the prospectus.