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Meesho Rebrands to Pvt Ltd: Bold Move Ahead of IPO
Ahead of IPO, Meesho has renamed its entity to “Meesho Pvt Ltd” from “Fashnear Technologies Private Limited”. Meesho said when filing an MCA, the move of rebranding will align with its corporate and brand entity while eliminating all the conflicts with public opinion.
Summary:
1. Meesho, an e-commerce platform , has renamed its entity to “Meesho Pvt Ltd” ahead of its IPO.
2. Meesho received approval from shareholders on April 23 to improve brand recall, shareholders’ trust, and business positioning.
3. Meesho, founded in 2015, is India’s third-largest shopping platform in terms of GMV. The company expects to increase its e-commerce market share to 10% over the next six years, backed by significant growth in tier II and III cities.
According to sources, the renowned shopping platform and a popular company received the approval of altering its name from the shareholders on April 23.
This will improve brand recall, shareholders’ trust, and the entire business positioning, said Meesho.
They also said, Although the move will brace shareholders’ confidence, enable functional and strategic union. It will also offer the platform for future growth and reach by improving global identity and market flexibility.
Why Messho Made This Move?
This contributes to the company’s preparations for its initial public offering. In January, the renowned shopping platform already applied with the NCLT Bengaluru to change its domicile to India.
While the company’s IPO date has not been disclosed, the company has claimed to have retained Morgan Stanley, Kotak Mahindra Capital, and Citi as advisers.
Meanwhile, the company’s rival Flipkart is preparing for a public offering. Last week, the global online retailer announced its intention to make its return to India.
Meesho was founded in 2015 by IIT alumni Vidit Aatrey and Sanjeev Barnwal and is India’s third-largest shopping platform in terms of GMV.
According to a CLSA analysis, Meesho expects to increase its market share to 10% over the next six years, backed by significant growth in tier II and III cities, a capital-light approach, and a strong emphasis on affordability.
On the financial front, the company has reduced its net loss by 82% to INR 304.9 crore in FY24, down from INR 1,675 crore the previous year. Operating revenue increased 32.8% year on year to INR 7,614.9 Cr.
It is worth noting that altering the name of a parent corporation before filing for an IPO is a common practice. Earlier this month, Zepto, which is planning an IPO, also changed the name of its registered entity from Kiranakart Technologies Private Limited to Zepto Private Limited.
The rapid commerce company mentioned the same justifications for the name change as Meesho did in its regulatory filings. The IPO rush in the Indian company scene follows a successful 2024, when 13 new-age digital businesses went public. As a result, more than 20 firms are expected to go private this year, with Ather Energy certainly going to be the first new-age tech business to do so in 2025.
While BlueStone and Aye Finance have gained SEBI approval to proceed with their respective IPOs, Urban Company, PhysicsWallah, and boAt have submitted draft IPO papers to the regulator.
