Meesho's Strategic IPO: A Long-Term Bet on Tech Talent

E-commerce giant Meesho plans to allocate Rs 480 crore from its IPO proceeds to salaries for AI and technology teams. The move has stirred debate about IPO fund use. The company looks to raise Rs 5,421 crore with plans for tech and marketing investments, and potential acquisitions.

E-commerce company Meesho intends to channel Rs 480 crore of its public offer funds into salaries for its AI and technology teams, as per its draft IPO papers.

The decision has ignited a social media debate concerning whether such an allocation signifies financial prudence or highlights a strategic investment in tech talents.

Backed by SoftBank, the Bangalore-based e-commerce player is set to raise Rs 5,421 crore through its IPO, launching on December 3. The offering includes a fresh issue of Rs 4,250 crore and a secondary sale of Rs 1,171 crore worth of shares.

Meesho plans further investments, including Rs 1,390 crore in cloud infrastructure, Rs 1,020 crore in marketing and brand initiatives, and a limited portion for acquisitions and strategic initiatives. These details will be updated with the offer price in the prospectus before final filing.

(With inputs from agencies.)