Meesho IPO: How does the e-commerce platform stack up against Nykaa and FirstCry?

The company aims to raise ₹5,421.2 crore, comprising a fresh issue of ₹4,250 crore and an offer for sale of ₹1,171.2 crore. The IPO price band is set between ₹105 to ₹111 per share, and investors can apply for a minimum of 135 shares per lot.

Meesho will use the IPO proceeds to strengthen its technology and growth capabilities by investing in advanced cloud infrastructure, Payment of salaries for existing and new talent in its machine learning, AI, and technology teams, and enhancing marketing and brand-building initiatives through its subsidiary, Meesho Technologies Private Limited.

An overview of the e-commerce industry

India’s e-commerce industry is scaling rapidly as consumers shift from unorganised offline retail (79% share) toward digital channels. The market stands at approximately ₹6 trillion GMV in FY25 and is projected to grow at 20–25% CAGR to ₹15–18 trillion by FY30, driving 12–13% of India’s total retail spends.

This is further fuelled by India’s fast-expanding digital ecosystem with 818–853 million internet users and 692–706 million smartphone users in FY25, but only 250–270 million online shoppers, indicating significant untapped demand. Affordable data, UPI payments, and government programs like Digital India and BharatNet are the main drivers of this digital adoption. With increasing consumption, Tier 2+ cities are driving the next growth wave and are predicted to contribute 51–52% of e-commerce GMV by FY30, up from roughly 44% in FY25.

Amazon and Flipkart follow traditional e-commerce models focused on branded goods, fast delivery, and convenience for urban and premium buyers, earning revenue through seller commissions, advertising, and fulfilment services. Meesho's value-focused approach, on the other hand, connects small manufacturers with price-conscious consumers in Tier-2, Tier-3, and rural India.

As India’s online retail market space matures, Meesho is marching to capture the market share. The company has diverse competitors from both online and offline segments. Among the listed spaces, Nykaa and FirstCry seem to be the closest competitors for the company. These companies have overlapping customer and product segments and are expanding aggressively into different categories and increasing their reach in the Tier-2+ markets.

KPI comparison

The table below illustrates the KPI comparison of Meesho, Nykaa (FSN E-Commerce Ventures) and Brainbees Solutions (FirstCry)

*Market cap as of December 1 closing price

**Online + offline stores

***Meesho market cap based on post issue shareholdings and upper end of issue price

The above comparison highlights how Meesho, Nykaa and FirstCry differ in size, business scale and customer behaviour. Nykaa, which has a diverse portfolio of beauty, personal care, and fashion products, is the most profitable among the three, with a net profit of ₹72 crore. The company has the highest average order value of ₹2,021 (beauty) and ₹4,609 (fashion) as it operates in premium segments and caters to urban and Tier-1 markets.

Meanwhile, Meesho’s average order value of around ₹274.27 is far lower compared to Nykaa and FirstCry, as the company caters to users from Tier-2 and Tier-3 cities. Meesho enables consumers to access a wide range of products at low prices, while the sellers on the platform benefit from zero commissions, which is reflected in its high order volume of 183.4 crore orders in FY25.

Overall, Meesho leads in transacting users and the number of orders placed, while Nykaa leads in profitability and AOV, and FirstCry leads in niche category focus.

Meesho

In FY25, Meesho reported revenue from operations at ₹9,389.90 crore, up sharply from ₹7,615.15 crore in FY24, with total income rising to ₹9,900.90 crore. In H1FY26, annual transacting users stood at 23.42 crore and the GMV at ₹33,483 crore. As of H1FY26, Meesho had the lowest average order value (AOV) of any scaled e-commerce player, at ₹274.27. The platform continues to scale successfully across Tier-2 and Tier 3 markets, enabling high order volumes and competitive pricing, thanks to its marketplace-only strategy, zero-commission structure, and strong logistics partnerships.

Nykaa (FSN E-Commerce Ventures)

Nykaa closed FY25 with ₹7,950 crore in revenue, up 24% YoY and a ₹15,604 crore GMV. Robust growth was seen in Beauty, with a GMV growth of about 30% YoY in all four quarters, and there was improving traction in Fashion. It operates 265 beauty stores across 90 cities, forming India’s largest specialised beauty retail network, supported by over 9,000 brands as of September 2025. The gross margin expanded to 44.9%, driven by scaling of the House of Nykaa brands, up 5x YoY in H1FY26, better leverage on employee costs, and disciplined sales & distribution spends.

FirstCry (Brainbees Solutions Limited)

FirstCry is India’s largest multi-channel retailer for mothers, babies and kids, operating 1,198 modern stores and a strong online platform with 1.05 crore annual transacting customers as of September 2025. In FY25, the company delivered ₹7,659.6 crore in consolidated revenue, up 18% YoY, while its net loss stood at ₹264.8 crore. Gross margin in India's multichannel business stood at 37.4%, supported by the expansion of faster-delivery coverage from 4 to 13 cities that led to an improvement in TAT, better growth and customer experience.

Overall, Meesho, Nykaa and FirstCry are benefitting from India’s fast-growing shift to online shopping. Each follows a distinct strategy: Meesho focuses on mass-market value, Nykaa on premium beauty and strong margins, and FirstCry on a trusted parenting ecosystem with an omnichannel edge.