Meesho's IPO: Betting Big on Tech Talent

Meesho, an e-commerce firm, plans to channel Rs 480 crore from its IPO toward salaries for AI and technology teams. The firm aims to raise Rs 5,421 crore through the IPO. The allocation reflects a strategic focus on tech talent and infrastructure expansion.

Meesho, the e-commerce company, intends to allocate Rs 480 crore from its upcoming Initial Public Offering (IPO) to cover salaries for its AI and technology staff. This strategic move has ignited discussions about the potential implications of such a large investment in personnel from IPO proceeds.

Backed by SoftBank, Meesho is targeting to raise Rs 5,421 crore when its IPO opens on December 3, with plans to debut on the stock market by December 10. The offering comprises a fresh issue of shares valued at Rs 4,250 crore and an Offer For Sale worth Rs 1,171 crore.

Aside from personnel costs, the firm plans to invest heavily in cloud infrastructure and marketing, with Rs 1,390 crore and Rs 1,020 crore set aside, respectively. Additional allocations are reserved for acquisitions and corporate initiatives, underscoring Meesho's growth ambitions.

(With inputs from agencies.)