Your go-to app for affordable shopping, Meesho, is taking a giant leap towards the stock market. The social commerce giant has officially received the green light from its shareholders to raise approximately Rs 4,250 crore (about $500 million) through an Initial Public Offering (IPO).In a recent meeting, shareholders passed a special resolution, giving the company the go-ahead for this massive fundraising plan. This approval is a critical step in Meesho's journey to becoming a publicly listed company, allowing anyone to buy a piece of the company by purchasing its shares.What Does the Plan Involve?The fundraising is structured in two main parts:Primary Fundraise: The bulk of the IPO, Rs 4,250 crore, will be a "primary issuance." This means the money raised goes directly into Meesho's bank account. Think of it as fresh fuel for the company's engine, which will be used to expand its business, compete with giants like Amazon and Flipkart, and deepen its reach into India's smaller towns and cities.Secondary Offering (OFS): The plan also includes an "Offer for Sale" (OFS), which will allow some of Meesho's early investors and backers to sell a portion of their shares to the public. The exact size of this secondary sale hasn't been finalized yet.Before the main IPO, Meesho might also raise up to Rs 835 crore (around $100 million) in a "pre-IPO placement" from large institutional investors. If successful, this early round would reduce the size of the main public offering.A Major Strategic Move: Coming Home to IndiaOne of the most significant parts of this plan is a major corporate restructuring. Meesho is moving its legal home base (domicile) from Delaware, USA, to India. This process, often called "flipping" or "inversion," simplifies the company's structure and makes it more attractive for a listing on Indian stock exchanges. This signals a strong commitment to its home market.What's Next for Meesho?Founded by Vidit Aatrey and Sanjeev Barnwal, Meesho has become a dominant force in India's e-commerce landscape, especially in Tier-2 and Tier-3 cities, by focusing on unbranded, affordable goods. While not yet profitable, the company has made huge strides in cutting its losses and is on a clear path toward financial stability.With shareholder approval secured, Meesho is expected to file its draft IPO papers with the market regulator, SEBI, in the coming months. The company is already in talks with top investment banks like Kotak, Bank of America, and Jefferies to manage the public issue. If all goes to plan, we could see Meesho's IPO hit the market within the next 12 to 18 months, marking a major milestone for the Indian startup ecosystem.
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