Meesho, the fast-growing ecommerce unicorn, is set to make its stock market debut tomorrow, and early investors are already celebrating substantial gains from the company’s highly anticipated IPO. With a strong response from institutional and retail investors, Meesho’s public issue has not only boosted market confidence but also delivered exceptional returns to its cofounders and backers.
The Meesho IPO featured a fresh issue of ₹5,421 Cr along with an Offer for Sale (OFS) of up to 10.6 Cr shares. The robust subscription numbers — oversubscribed by an impressive 79.03 times — clearly signaled the market’s excitement about the company’s business fundamentals, rapid growth, and long-term potential. The IPO price band was set between ₹105 and ₹111 per share, and investors responded enthusiastically across categories.
One of the biggest winners from this IPO is Y Combinator, one of Meesho’s earliest backers. The global accelerator offloaded 71.9 lakh shares through the public offering, securing an extraordinary 108X return at the upper price band of ₹111. Such massive gains underscore the value Meesho has created over the years and highlight how early-stage backing can result in exceptional outcomes when a startup achieves scale and profitability. Y Combinator’s windfall also strengthens its track record of identifying and nurturing global startup successes.
Elevation Capital, another prominent investor, also reaped significant rewards. The firm sold the highest number of shares in the OFS, offloading 2.4 Cr shares. With an average cost of acquisition of just ₹3.04 per share, Elevation Capital achieved an impressive 37X return on its investment. Despite the sizable exit, the VC firm continues to hold a substantial stake in Meesho. At the price of ₹111 per share, its remaining stake is valued at a massive ₹6,160 Cr (approximately $740 Mn), illustrating the long-term value the firm still anticipates from Meesho’s journey as a publicly traded company.
The strong performance of the Meesho IPO reflects the changing landscape of India’s ecommerce and social commerce sectors. Meesho’s asset-light model, focus on small sellers, and deep penetration into tier-2 and tier-3 markets have enabled it to carve a unique space in the competitive ecommerce ecosystem. Its ability to drive inclusive entrepreneurship and enable millions of small resellers has further strengthened its brand and investor appeal.
As Meesho gears up for its official listing tomorrow, market watchers expect significant activity around the stock. If listing sentiment reflects the IPO subscription levels, Meesho could be one of the most noteworthy tech listings of the year. The company’s debut stands as a testament to the strength of India’s startup ecosystem and the wealth-creation opportunities it continues to generate for founders, investors, and public market participants alike.
With blockbuster returns, high investor confidence, and strong business fundamentals, Meesho’s IPO is set to leave a lasting mark on India’s capital markets.
Leave a comment