Meesho Picks Morgan Stanley, Kotak & Citi For $1 Billion IPO; Targets $10 Billion Valuation

E-commerce major Meesho is set to launch a $1 billion initial public offering (IPO), with Morgan Stanley, Kotak Mahindra Capital, and Citi as lead bankers. [Source:  Moneycontrol]

The company is targetting a valuation of approximately $10 billion, a striking 2.5 times increase from its valuation of $3.9 billion reported last year.

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Meesho's strategic move

According to reports, this is  Meesho’s strategic move to position itself ahead of its arch-rival Flipkart, generating direct sales between small businesses and consumers.

SoftBank-backed Meesho will then join a list of rising Indian startups such as PhysicsWallah (PW), Ather Energy, and Lenskart, which are seeking a remarkably higher valuation than during their private market fundraises.

Meesho's valuation jump of 2.5 times to an estimated $10 billion reflects strong investor confidence in its business model and market potential. 

Despite being a late entrant in the e-commerce space, Meesho has grown in size and scale and improved its profit profile despite competing against well-funded bigshot players such as Walmart’s Flipkart and Amazon. 

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