Meesho to spend ₹1,020 cr on marketing ahead of IPO

E-commerce platform Meesho, which recently received the Securities and Exchange Board of India (SEBI) approval for its initial public offering (IPO), plans to allocate Rs 1,020 crore from the fresh issue proceeds towards marketing and brand-building initiatives over the next two fiscal years, according to its updated draft red herring prospectus (UDRHP).

The company intends to invest Rs 480 crore in FY27 and Rs 540 crore in FY28 through its subsidiary, Meesho Technologies Private Limited (MTPL), to fund brand and performance marketing campaigns. The funds will support consumer education, influencer-driven commerce, and regional campaigns to strengthen market presence and user engagement.

The brand’s marketing and advertising spending has seen significant growth in recent years. Total advertising and sales promotion expenses rose 40% year-on-year to Rs 6,435 million in FY25 from Rs 4,594 million in FY24, driven by higher consumer acquisition and retention costs, as well as payments to content creators. Digital marketing accounted for Rs 5,481 million of this, while television, print, and event-related expenses stood at Rs 954 million.

The company said its marketing strategy spans brand campaigns across television, digital, and out-of-home platforms, performance marketing, and influencer collaborations. It has also entered into long-term partnerships with marketing agencies to execute data-driven and localized campaigns across Tier 2 and Tier 3 markets.

According to the filing, the brand has committed Rs 250 crore over the next three years with one of its existing marketing agency partners. The company’s advertising mix may vary by region and season, depending on business goals and market conditions.

Beyond marketing, the brand plans to invest another Rs 1,390 crore in cloud infrastructure and Rs 480 crore in salaries for its AI and technology teams, with a portion of proceeds also earmarked for inorganic growth and acquisitions.

The company emphasised that marketing and advertising remain central to its growth strategy, citing a 45.7% increase in annual transacting users and a 79.4% rise in placed orders between FY23 and FY25.