India’s equity markets are seeing renewed enthusiasm for technology businesses that specialise in serving smaller cities, and Meesho Ltd.’s debut in Mumbai on Wednesday has become a noticeable signal of this shift.
The company’s first trading session arrives at a time when investors are actively assessing how digital platforms can scale across India’s expanding consumer landscape.
With deal activity already surpassing last year’s peak and interest concentrating on firms that reach value-driven shoppers, the Meesho listing is drawing extra attention to the momentum behind this category.
Strong debut
Meesho shares climbed as much as 60% after raising $603 million in its initial public offering. The stock is trading at Rs 170.11, placing the company’s valuation near $9 billion.
It ranks among the strongest Indian IPO performances of the year and adds to a busy period that has pushed India to the position of the fourth-biggest IPO venue globally.
Several listings have generated intense participation as investors look for companies capable of serving millions of digital-first consumers who now expect affordable and convenient online shopping.
Tech listings gain traction
The rush of offers reflects rising confidence in India’s expanding technology sector as companies prepare for 2026 with plans to capture more capital while retail interest remains high.
Recent listings by Urban Co. and Billionbrains Garage Ventures Ltd., the parent of Groww, also saw sharp gains on their market debut. Still, the broader trend shows uneven performance.
Approximately half of the 333 companies listed so far this year trade below their offer price.
Lenskart Solutions Ltd., which raised $810 million, has fluctuated between gains and losses, prompting continued discussions about startup valuations.
Meesho’s early performance is therefore being watched closely as investors reassess the strength of consumer-facing technology platforms.
Focus on smaller-city demand
Meesho operates a large online marketplace that links small manufacturers with customers living in India’s smaller cities.
The company has built demand by offering low-priced and fast-moving products, including trendy clothing with dresses priced at about $4.
Its business model has made it one of the most recognisable platforms in India’s value-focused retail segment.
The IPO drew overwhelming interest and was subscribed more than 79 times, despite an anchor round in which several major funds opted out.
The Bengaluru-based company reported revenue of about Rs 94 billion and a loss of Rs 39.4 billion for the year ended March.
Part of the capital raised is expected to support deeper expansion into towns where rising internet use and growing affordability are reshaping consumption patterns.
Analysts back growth potential
Choice Equity Broking Pvt. initiated coverage on the company with a buy rating and a price target of Rs 200.
The brokerage expects the firm to achieve operating profitability by March 2027 and highlights its position as a large two-sided marketplace for value-conscious consumers.
Experts see scale advantages and improving unit economics as key factors in its expansion.
Backed by SoftBank Group Corp., Meesho has grown rapidly with a model similar to discount-focused global platforms such as Temu, using low-cost offerings to attract frequent purchases across diverse income groups.
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