E-commerce platform Meesho is currently involved in a high-stakes legal dispute with Amazon Web Services (AWS) India over alleged unpaid cloud service charges, just as the company prepares for its Initial Public Offering (IPO). AWS is seeking ₹127.45 crore through arbitration, while Meesho has lodged a counterclaim of ₹86.49 crore, highlighting a contentious disagreement that could influence the company’s valuation and IPO prospects.
Dispute Overview
| Aspect | Amount (₹ Crore) |
| AWS Claim | 127.45 |
| Meesho Counterclaim | 86.49 |
| Planned IPO Size | 4,250.00 |
| Allocation for Technology & Cloud Infrastructure | 1,390.00 |
The dispute originates from a Private Pricing Addendum signed in February 2022, with AWS alleging unpaid service fees, interest, and arbitration costs. Meesho, on the other hand, claims service deficiencies and has countered with compensation for business disruption and migration costs.
IPO Context and Impact
The legal challenge comes at a sensitive time as Meesho gears up to raise ₹4,250 crore, including ₹1,390 crore for technology and cloud infrastructure. Investors may closely evaluate how these disputes, particularly with AWS, could affect the company’s operational stability and valuation ahead of its public listing.
Broader Legal Challenges
Meesho faces additional legal hurdles beyond AWS, including tax disputes and vendor disagreements, collectively exceeding ₹710 crore, with income tax demands alone at ₹572 crore. These pending matters underscore the legal and financial complexities surrounding the company’s expansion and IPO readiness.
Operational Scale
Despite ongoing disputes, Meesho maintains a significant market presence, handling 1.59 billion orders in the recent financial year, reflecting the company’s large-scale operations and investor appeal.
Summary
Meesho’s ongoing legal battle with AWS, coupled with other financial and regulatory challenges, adds uncertainty ahead of its ₹4,250 crore IPO. How the company resolves these issues will be closely monitored by potential investors, as the outcomes could impact valuation, market confidence, and the overall success of the public offering.
Disclaimer:
This article is intended solely for educational and informational purposes. The securities or companies mentioned are provided as examples and should not be considered as recommendations. Nothing contained herein constitutes personal financial advice or investment recommendations. Readers are advised to conduct their own research and consult a qualified financial advisor before making any investment decisions.
Investments in securities markets are subject to market risks. Please read all related documents carefully before investing.