Meesho generates Rs 1,032 Cr free cash flow in FY25

Meesho reported Rs 1,032 crore in Last Twelve Months (LTM) free cash flow in FY25, including interest income, positioning itself as the largest free cash flow generator among scaled listed e-commerce companies in India. 

Excluding interest income, the figure stands at Rs 591 crore, compared to negative Rs 2,336 crore in FY24.

Global technology companies have also seen a shift from growth-led spending to efficient growth supported by cash generation. Platforms such as PDD Holdings generated $16.6 billion in free cash flow in FY24, while MercadoLibre, Uber, and Airbnb reported $1.3 billion, $6.9 billion, and $4.5 billion respectively. These businesses operate asset-light marketplace models that aim to translate operating efficiency into liquidity, with scale contributing to margin expansion.

Meesho's FY25 improvement in free cash flow was driven by scale, monetisation, and operating leverage. 

The company recently filed an updated draft red herring prospectus (DRHP) with SEBI and is looking to raise $700–800 million through an IPO, including a $500 million fresh issue and an offer-for-sale of $200–300 million.