E-commerce platform Meesho is set to make its debut on the Indian stock market with a substantial initial public offering (IPO) planned for the second week of December. The company aims to raise between ₹5,500 crore to ₹6,000 crore through this offering, marking a significant milestone in its growth journey.

IPO Structure and Details

The proposed IPO structure includes both fresh issue of shares and an offer for sale (OFS) by existing investors:

Key Players and Exits

Several marquee investors are planning partial exits through the OFS, including:

• Elevation Capital
• Peak XV Partners
• Venture Highway
• Y Combinator Continuity
• Golden Summit Limited

Notably, Meesho's founders, Vidit Aatrey and Sanjeev Barnwal, will also sell small portions of their holdings.

IPO Management

The IPO will be managed by a consortium of leading financial institutions:

• Kotak Mahindra Capital
• JP Morgan India
• Morgan Stanley India
• Axis Capital
• Citigroup Global Markets

Recent Developments

Meesho received approval from the Securities and Exchange Board of India (SEBI) last month, following the filing of its draft papers earlier this year. This approval came after the company shifted its holding structure from the US to India, aligning with regulatory requirements for listing on Indian exchanges.

Financial Performance

While Meesho's growth trajectory has been impressive, it's important to note the company's recent financial performance:

The significant increase in net loss for FY23 is primarily attributed to one-time restructuring expenses, according to the company.

As Meesho prepares for this landmark IPO, investors and market watchers will be keenly observing how the e-commerce platform positions itself in the competitive Indian market landscape.

E-commerce platform Meesho finds itself embroiled in a significant legal dispute with Amazon Web Services (AWS) India, potentially impacting its upcoming Initial Public Offering (IPO) plans. The conflict centers around alleged unpaid cloud service charges, with AWS seeking Rs 127.45 crore through arbitration proceedings.

The Dispute in Numbers

Details of the Legal Challenge

AWS's claim includes:

• Spend commitment shortfall payments
• Pending service fees
• Interest
• Arbitration costs

These charges are related to a Private Pricing Addendum signed in February 2022. However, Meesho is contesting these invoices, citing service deficiencies.

Meesho's Response and Counterclaim

Meesho has filed a counterclaim worth Rs 86.49 crore, alleging:

• Business disruption losses
• Migration costs

This counteraction underscores the seriousness of the dispute and Meesho's determination to defend its position.

Impact on Upcoming IPO

The timing of this legal challenge is particularly sensitive as Meesho prepares for its IPO. The company plans to raise Rs 4,250 crore, with Rs 1,390 crore earmarked for technology and cloud infrastructure.

Meesho's Operational Scale

Meesho's operational scale is noteworthy, with the company handling 1.59 billion orders in a recent financial year, highlighting its significant market presence.

Additional Legal Challenges

The AWS dispute is not Meesho's only legal concern. The company faces other challenges, including:

• Tax disputes
• Vendor disagreements

These additional legal issues collectively exceed Rs 710 crore, with income tax demands alone accounting for Rs 572 crore.

Conclusion

As Meesho navigates these legal challenges while preparing for its IPO, potential investors will likely scrutinize how the company manages these issues. The resolution of these disputes, particularly the one with AWS, could have significant implications for Meesho's valuation and the success of its public offering.