NewsMeesho Limited: CRISIL Ratings Submits IPO Fund Utilisation Monitoring Report for Quarter Ended March 31, 2026Meesho Limited: CRISIL Ratings Submits IPO Fund Utilisation Monitoring Report for Quarter Ended March 31, 2026
Meesho Limited filed the CRISIL Ratings Monitoring Agency Report for the quarter ended March 31, 2026, covering IPO proceeds from a gross issue of Rs 42,500.00 million. During the quarter, Rs 3,375.27 million was deployed towards cloud infrastructure, salary payments, marketing, and issue expenses, with cumulative utilisation at Rs 3,748.52 million and Rs 38,751.48 million remaining unutilised. Net proceeds were revised upward from Rs 40,878.30 million to Rs 41,004.90 million due to actual issue expenses being lower than estimated by Rs 126.60 million. No deviation from the Offer Document objects was reported, and unutilised funds have been deployed in fixed deposits with a total market value of Rs 39,512.64 million as on March 31, 2026.
*this image is generated using AI for illustrative purposes only.
Meesho Limited, the Bengaluru-based e-commerce company, has submitted the Monitoring Agency Report issued by CRISIL Ratings Limited for the quarter ended March 31, 2026, in compliance with Regulation 32(6) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and Regulation 41(4) of the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018. The report details the utilisation and application of funds raised through the company's Initial Public Offer (IPO) and was filed with the stock exchanges on May 06, 2026.
IPO Issue Details
The company conducted its IPO during December 03, 2025, to December 05, 2025, raising gross proceeds of Rs 42,500.00 million through a fresh issue of equity shares. During the quarter ended March 31, 2026, the net proceeds were revised upward from Rs 40,878.30 million to Rs 41,004.90 million, as actual issue expenses were lower than estimated by Rs 126.60 million, with the difference added to General Corporate Purposes (GCP). The following table summarises the issue proceeds:
| Particulars: | Amount (Rs. million) |
|---|---|
| Gross Proceeds: | 42,500.00 |
| Less: Issue Expenses: | 1,495.10 |
| Net Proceeds: | 41,004.90 |
Object-wise Cost and Fund Utilisation
The net proceeds are earmarked across four primary objects. The monitoring agency confirmed no revision in the cost of three objects, while the allocation for inorganic growth and GCP was revised upward from Rs 11,978.30 million to Rs 12,104.90 million, corresponding to the reduction in issue expenses. The table below presents the revised cost of each object:
| Object of Issue: | Original Cost (Rs. million) | Revised Cost (Rs. million) |
|---|---|---|
| Cloud infrastructure investment (via MTPL): | 13,900.00 | 13,900.00 |
| Salaries – ML/AI & technology teams (via MTPL): | 4,800.00 | 4,800.00 |
| Marketing and brand initiatives (via MTPL): | 10,200.00 | 10,200.00 |
| Inorganic growth, acquisitions & GCP: | 11,978.30 | 12,104.90 |
| Sub-total: | 40,878.30 | 41,004.90 |
| Issue Expenses: | 1,621.70 | 1,495.10 |
| Total: | 42,500.00 | 42,500.00 |
During the quarter ended March 31, 2026, a total of Rs 3,375.27 million was utilised across the objects. The cumulative utilisation at the end of the quarter stood at Rs 3,748.52 million, leaving Rs 38,751.48 million unutilised. The progress in fund deployment is detailed below:
| Object of Issue: | Proposed Amount (Rs. million) | Utilised During Quarter (Rs. million) | Cumulative at End of Quarter (Rs. million) | Unutilised (Rs. million) |
|---|---|---|---|---|
| Cloud infrastructure (via MTPL): | 13,900.00 | 1,185.95 | 1,185.95 | 12,714.05 |
| Salaries – ML/AI & technology teams (via MTPL): | 4,800.00 | 258.69 | 258.69 | 4,541.31 |
| Marketing and brand initiatives (via MTPL): | 10,200.00 | 1,228.00 | 1,228.00 | 8,972.00 |
| Inorganic growth, acquisitions & GCP: | 12,104.90 | Nil | Nil | 12,104.90 |
| Sub-total: | 41,004.90 | 2,672.64 | 2,672.64 | 38,332.26 |
| Issue Expenses: | 1,495.10 | 702.63 | 1,075.88 | 419.22 |
| Total: | 42,500.00 | 3,375.27 | 3,748.52 | 38,751.48 |
Proceeds towards cloud infrastructure were utilised for availing cloud infrastructure-related services, salary proceeds were deployed for payment of salaries, and marketing proceeds were directed towards advertisement expenses. Issue expenses were utilised towards BRLM fees and other IPO-related costs. No utilisation was recorded for inorganic growth, acquisitions, and GCP during the reported quarter.
Deployment of Unutilised Proceeds
The unutilised proceeds of Rs 38,751.48 million have been deployed across fixed deposits with Kotak Bank, RBL Bank, and Axis Bank, as well as balances maintained in monitoring and current accounts. The total market value of these instruments as on March 31, 2026, stood at Rs 39,512.64 million, with earnings of Rs 761.16 million recorded on the deployed amounts. The fixed deposits carry returns ranging from 6.00% to 6.70%, with maturity dates extending up to March 31, 2028.
Compliance and Monitoring Agency Observations
CRISIL Ratings Limited, acting as the Monitoring Agency pursuant to the Monitoring Agency Agreement dated November 21, 2025, confirmed that all utilisation during the quarter ended March 31, 2026, was in accordance with the disclosures in the Offer Document (Prospectus dated December 05, 2025). The monitoring agency's findings are summarised below:
- Deviation from objects: Not applicable
- Shareholder approval for material deviation: Not applicable — no deviation observed
- Change in means of finance: No
- Major deviation from earlier monitoring agency reports: No
- Delay in implementation: Not applicable
- General Corporate Purpose utilisation during the quarter: Nil
The report was prepared on the basis of a management undertaking and a statutory auditor certificate dated April 29, 2026, issued by M/s S. R. Batliboi & Associates LLP, Chartered Accountants (Firm Registration Number: 101049W/E300004), Statutory Auditors of the company. The report was signed by Shounak Chakravarty, Director, Ratings (LCG), on behalf of CRISIL Ratings Limited. The company's promoters are Mr. Vidit Aatrey and Mr. Sanjeev Kumar, and the company operates in the E-Retail / E-Commerce sector.
Historical Stock Returns for Meesho
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +1.26% | +7.28% | +19.22% | +14.72% | +14.72% | +14.72% |
How will Meesho deploy the Rs 12,104.90 million earmarked for inorganic growth and acquisitions, and which sectors or companies might be potential targets given the competitive e-commerce landscape?
With over 91% of IPO proceeds still unutilised as of March 2026, what is Meesho's expected timeline for full fund deployment, and could delays impact its competitive positioning against Flipkart and Amazon India?
How will Meesho's planned investments in cloud infrastructure and ML/AI talent translate into measurable improvements in platform performance, seller experience, and customer retention metrics?
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