Meesho posts $32.8m loss ahead of IPO

Meesho reported a net loss of 289 crore rupee (US$32.8 million) for the quarter ended June 2025, according to its updated draft IPO prospectus.

The Bengaluru-based ecommerce platform, backed by SoftBank, is preparing for an US$800 million IPO after receiving SEBI approval.

Its operating revenue for the quarter stood at 2,503 crore rupee (US$284.4 million), while net merchandise value reached 8,679 crore rupee (US$986 million).

The company cited IPO-related costs, including reverse flipping, taxes, accelerated ESOP expenses, and higher ad spend, as reasons for its widened annual loss, which rose to 3,941 crore rupee (US$447.7 million) in FY25 from 327 crore rupee (US$37.2 million) in FY24.

Annual operating revenue increased 23% to 9,389 crore rupee (US$1.01 billion).

Meesho reported 21.3 million annual transacting users and 570,000 sellers, with total expenses of 2,777 crore rupee (US$315.5 million) for the June quarter.

It plans to raise up to 4,250 crore rupee (US$482.9 million) through a new issue and offer for sale.

🔗 Source: YourStory

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Implications, context, and why it matters.

Meesho ties FY25 loss to one-time IPO costs

The company reported a Rs 3,941 crore loss in FY25. After removing exceptional items such as reverse flip tax and perquisite tax (a levy on employee benefits such as stock-based compensation), core operating loss was Rs 108 crore 1.
Free cash flow (cash left after operating expenses and capital spending) turned positive in FY25 2. It hit Rs 1,032 crore against negative Rs 2,336 crore a year earlier. The company says this makes it India’s largest free cash flow generator among scaled ecommerce players 2.
Operating revenue rose 23% to Rs 9,389 crore 3. Net merchandise value climbed 30% to about Rs 30,000 crore 3.
Q1 FY26 loss came to Rs 289 crore 4. Marketing and promotional spend reached Rs 239 crore in the same quarter 4.

Vendors can vie for Meesho’s Rs 1,390 crore cloud infrastructure spend

Meesho plans to put Rs 1,390 crore from its IPO into cloud infrastructure and technology 4. Cloud providers and infrastructure vendors can pitch for large contracts.
It set aside Rs 480 crore for hiring AI, machine learning (ML), and technology team salaries 4. Recruiters and AI or ML service firms get a clear demand signal.
Valmo, Meesho’s in-house logistics unit, handled nearly 61% of orders in Q1 FY26 and processed about 300 million shipments 3. Logistics tech and automation vendors can help the network scale.
Digital marketing spend jumped 56% from Rs 351 crore in FY24 to Rs 548 crore in FY25 4. Martech and performance tools can expect steady demand.