Meesho’s $604M IPO Fully Subscribed on Day One during Strong Investor Demand

Retail and institutional investors rush to participate as Meesho posts revenue growth and significant reduction in losses.

Meesho's $604 million new public offering was fully subscribed on the initial day of bidding on Wednesday with retail investors rushing to get a piece of the Indian e-commerce platform amid a thriving IPO market.

Meesho looks for an estimate of up to $5.6 billion and got offers for 429.13 million shares as of 3:32 p.m. IST compared to 277.94 million shares on offer based on the exchange. Retail investors offered for 173.64 million shares, over tripling the 51.03 million shares reserved for them.

The company's launch is the latest in the line of IPOs by technology-based companies such as Groww, Lenskart and PhysicsWallah which are capitalizing on a growing primary market. Over 300 IPOs have earned $19.26 bn in India so far in 2025, suggesting that this year will be a record year for IPO fundraising according to LSEG data.

According to Rajan Shinde, a research analyst at Mehta Equities, Meesho's asset-light model, zero commission structure for sellers and disciplined cost optimization have allowed quick user and order growth while steadily increasing unit economics.

The company, which is backed by Softbank and Peak XV Partners, has raised around $270 million from anchor investors such as SBI Innovative Opportunities Fund and the Government of Singapore in preparation for its public offering. The offering closes on 5 December.

Independent investors offered for 1.38 times the number of shares available for purchase while the portion allocated for qualified institutional purchasers was also completely subscribed. Meesho's income increased 29.4% to 55.78 billion rupees ($622.96 million) in the first half of financial year 2026 while losses dropped 72.1% to 7 billion rupees.