The Meesho initial public offering (IPO) has generated significant discussion in the market, and brokerage firm Motilal Oswal Wealth Management has now shared its view. According to the brokerage report, the issue has been assigned a ‘subscribe’ rating. The firm believes certain business metrics and cost structures may help the company scale further, even though the competition in online retail stays intense.
Let’s take a look at what the brokerage is highlighting in its analysis –
Motilal Oswal on Meesho IPO: A fast-expanding value-commerce platform
According to the brokerage report, Meesho has built a large value-commerce marketplace that has grown quickly over the past few years. The platform recorded 234 million annual transacting users, expanding at around 21% compound annual growth rate (CAGR) between financial year (FY) 2023 and FY2025. A major part of its user base that is almost 88%comes from outside India’s top eight cities, which shows how deeply the brand has penetrated smaller markets.
The brokerage report further noted that Meesho holds a 21-23% market share in the organised fashion category, 23-25% share in home and kitchen products, and is the third-largest player in beauty and personal care with 8-10% market share.
Motilal Oswal on Meesho IPO: Why the zero-commission model matters
One of the most discussed parts of Meesho’s business is its zero-commission model. Instead of charging sellers a marketplace fee, the platform only bills for logistics and advertising. According to the brokerage report, this keeps product prices lower and helps the platform run what it calls a “frequency-led model,” supported by a very low average order value (AOV) of around Rs 265.
Meesho does not run private labels, which keeps participation more open for sellers. As per the brokerage report, over 0.7 million sellers fulfilled 2.27 billion orders in the twelve months ending September 2025. Annual order frequency has also increased from 7.5 times to more than 9 times between FY2023 and FY2025.
Motilal Oswal on Meesho IPO: Valmo gives the company a cost edge
Valmo, which is Meesho’s asset-light logistics arm, launched in August 2022, , has become a major part of its operating structure.
As per the brokerage report, Valmo now handles around 65% of all shipped orders, working with over 18,000 local partners.
The brokerage noted that Valmo’s cost per shipment is 10-11% lower, which has helped reduce Meesho’s variable cost per order from around Rs 50 in FY2023 to about Rs 43 in FY2025.
Motilal Oswal on Meesho IPO: A look at the valuation
Motilal Oswal also looked at valuations. According to the brokerage report, the IPO is priced at 4.5 times Price-to-Sales (P/S) based on annualised and diluted numbers of the second quarter of FY2026. The brokerage noted that this is lower than the average valuation of other e-commerce companies, which trade around 7 times P/S.
These other e-commerce players that Motilal Oswal report compares it with include Avenue Supermarts (DMart) with a market capitalisation of Rs 2,57,800 crore. Trent with a market cap of around Rs 1,50,200 crore. FSN E-Commerce, the parent company of Nykaa, stands at a market cap of Rs 74,800 crore, while Vishal Mega Mart is valued at nearly Rs 63,300 crore. Another player, Brainbees Solutions (FirstCry), is valued at around Rs 15,700 crore.
Meesho, which will list on December 10, has an estimated market capitalisation of Rs 50,100 crore.
Based on these factors, the brokerage has maintained its ‘subscribe’ recommendation for the IPO.