Archive · 22 Dec 2025
Meesho Shares Crash 10% After IPO Surge
Meesho is an Indian ecommerce company that had a very successful IPO in 2025.
They focused on selling affordable fashion, lifestyle, beauty, and household essentials, mainly to people in smaller cities.
Meesho didn't get involved in the trend of quick deliveries, which helped them save money and grow faster than competitors like Amazon and Flipkart.
They built their own logistics system called Valmo, which helped them deliver packages more efficiently and at a lower cost.
Meesho also used AI to improve their services, like understanding customer preferences and making deliveries to places that aren't well-mapped.
Their IPO was a big success, raising a lot of money that they plan to use for further growth and improvement.
However, they still face challenges from bigger competitors like Amazon and Flipkart.
After the IPO, Meesho's shares surged to a record high but then dropped by 10% in two days as investors sold their shares to make a profit.
Meesho's IPO in 2025 was oversubscribed 79.03 times and listed at a 46.4% premium, raising INR 5,421 Cr at a valuation of over INR 50,000 Cr.
Meesho processed 230 Cr orders in the 12 months ended September 2025, with 37% of the overall ecommerce orders in its control in the first nine months of FY25.
Meesho's revenue grew by 23% in FY25, outpacing Amazon's 19% and Flipkart's 14% topline growth.
Meesho's in-house logistics platform, Valmo, helped reduce dependence on third-party services and improved delivery efficiency in Tier II to VI towns.
Meesho invested heavily in AI and technology, developing in-house models to enhance search relevance, improve product recommendations, and optimize logistics routing.
Meesho shares crashed 10% on December 22, 2025, hitting the lower circuit price of ₹202.05 after reaching a record high of ₹254.65.
Despite the crash, Meesho shares remain 82% above their IPO price of ₹111, leaving strong gains for investors.
- Who
- Meesho, an Indian ecommerce platform
- What
- Meesho's share price crash after a successful IPO
- When
- December 22, 2025
- Where
- India
- Why
- Investors booking profits after a significant price surge post-IPO
- IPO Valuation
- More than INR 50,000 Cr
- IPO Proceeds
- INR 5,421 Cr
- Revenue Growth (FY25)
- 23%
- Orders Processed (12 months ended Sept 2025)
- 230 Cr
- Market Share (2024)
- 9%
- Valmo Logistics Partners
- 6,000 hyperlocal partners across 15,000 postal codes
- AI/ML Team Size
- Over 1,000 employees
- FY25 Losses
- INR 3,942 Cr (due to one-time cost of reverse flipping from the US to India)
- IPO Price
- ₹111
- Peak Share Price
- ₹254.65
- Lower Circuit Price
- ₹202.05
