E-commerce firm Meesho notches $8.8 billion valuation in blockbuster India debut

jumped about 58% in their debut on Wednesday, giving the company a valuation of 789.3 billion rupees ($8.78 billion) and signalling strong demand for India's mass-market fashion and lifestyle segment.

The stock listed at 162.5 rupees on the National Stock Exchange of India and hit 175 rupees, against an issue price of 111 rupees.

and Walmart-owned Flipkart in India's online retail market, it has carved out a niche by offering low-priced products without charging sellers a commission.

"Meesho has a few levers to grow its earnings. They currently do not charge any commission, and advertising revenue as a percentage of net merchandise value is 2.5% compared to 5-10% globally," said Sunny Agrawal, head of fundamental equity research at SBICAPS Securities.

The company, backed by Softbank and Peak XV Partners, received bids worth about $28 billion for its $604 million IPO amid strong interest from institutional buyers.

Its listing follows strong debuts from technology-focused peers Groww (BILO.NS), opens new tab and PhysicsWallah (PHYS.NS), opens new tab in a market where more than 300 IPOs have raised $19.26 billion through early December, LSEG data showed.