Just a few years ago, the idea of Meesho, an ecommerce marketplace targeting India’s Tier 2 and Tier 3 cities, outpacing Flipkart to the IPO line would have been laughed away. But that’s exactly what is playing out.

Vidit Aatrey-led Meesho is set for an INR 6,000 Cr IPO (by most estimates), making it one of India’s largest tech listings in the past year.

The potential listing — still some way away — will be a defining moment for India’s new-age ecommerce ecosystem, as it becomes the first horizontal B2C marketplace to go public

Flipkart, whose valuation is roughly 16 times higher than Meesho’s, has been eyeing an IPO for the past 3-4 years, but it’s Meesho that is cashing in on the momentum being seen in the stock markets for new-age companies.

Meesho’s ambition and confidence stems from more clarity in its fundamentals. With its primary business model now set and an in-house logistics business also scaling up, the Bengaluru-based unicorn could set a new benchmark for Flipkart and other marketplaces that follow.

Even though the company has reported heavy losses in FY25, the turnaround seems to be just around the corner. Especially when we look at the margins and unit economics. Let’s dive into how Meesho clawed back from deep losses to come to the verge of break-even.

Meesho’s Growth Engine

Founded in 2015 by Vidit Aatrey and Sanjeev Barnwal, Meesho was once seen as the poster child of India’s social commerce boom, before it pivoted decisively in 2023 to a leaner marketplace model. This included cost rationalisation, marketing cuts, shutting down non-core verticals, and several rounds of layoffs.

The transformation has delivered results: between FY23 and FY25, revenue from operations surged 64% from INR 5,730 Cr to INR 9,389 Cr, largely driven by its core marketplace and logistics services.

The marketplace primarily caters to a value conscious user base in non metro cities. Of its 213 Mn annual transacting users in the twelve months indeed June 30, 2025, more than 87% came from outside Indian top eight cities, underscoring Meesho’s dominance in rural India’s digital retail landscape.

The platform operates as an orchestrator among four key stakeholders, consumers, sellers, logistics partners, and content creators, without holding inventory or operating warehouses.

The logistics flywheel is centred on Valmo, Meesho’s in-house logistics technology........

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