Suspense crime, Digital Desk : Indian e-commerce giant Meesho has moved a significant step closer to its public market debut, with its board of directors giving the final approval for a massive ₹4,250 crore (approximately $500 million) Initial Public Offering (IPO). The company is reportedly targeting a valuation of around ₹29,000 crore (about $3.5 billion).

This much-anticipated IPO is structured to include two main components: a fresh issue of shares worth ₹2,100 crore ($250 million) and an Offer for Sale (OFS) of the same amount. The capital raised from the fresh issue will be injected directly into the company to fuel its growth, while the OFS will allow some of its early and existing shareholders to sell a portion of their stake.

Meesho, which has carved out a niche by focusing on India’s smaller Tier-2 and Tier-3 cities with unbranded, low-cost products, is backed by a roster of high-profile global investors. These include Japan’s SoftBank, Peak XV Partners (formerly Sequoia Capital India), Prosus, and Fidelity.

The company’s strategic focus on affordability has positioned it as a formidable competitor to e-commerce behemoths like Amazon and Walmart-owned Flipkart. While Meesho’s revenue grew impressively to ₹5,735 crore in the fiscal year 2023, it has been on a determined path to cut losses and achieve profitability ahead of its public listing.

With the board’s approval now secured, Meesho is expected to file its Draft Red Herring Prospectus (DRHP) with the market regulator, the Securities and Exchange Board of India (SEBI), in the coming weeks, officially kicking off its journey to the stock market.

Read More: Meesho Gets Green Light for ₹4,250 Crore IPO, Aiming to Challenge Amazon and Flipkart