Indian ecommerce unicorn Meesho has found itself in the middle of a significant legal battle with Amazon Web Services (AWS) India, as revealed in its draft IPO papers filed with the Securities and Exchange Board of India (SEBI). The dispute, valued at ₹127.45 crore ($14.44 million), revolves around alleged unpaid dues, service deficiencies, and counterclaims for losses incurred.
According to Meesho’s filings, AWS has accused the company of failing to meet its payment obligations under their cloud service agreement. AWS is reportedly seeking compensation for what it calls a “spend shortfall,” along with pending service fees, accrued interest, and arbitration costs. These charges stem from contractual terms between the two companies related to Meesho’s use of AWS’s cloud infrastructure to power its ecommerce platform.
Read Also :- HooLiv Raises ₹24 Cr in Pre-Series A to Expand Shared Rental Platform Beyond Metros
However, Meesho has strongly disputed these claims, asserting that AWS did not deliver services as per agreed standards. The company has alleged deficiencies in AWS’s performance, which, according to Meesho, disrupted its business operations. The ecommerce platform further claims that due to AWS’s inadequate support, it had to migrate its workloads to alternative service providers, incurring significant additional costs in the process.
In response to AWS’s claims, Meesho has filed a counterclaim of ₹86.49 crore, seeking compensation for the losses it says were caused by the service disruptions and migration expenses. The counterclaim reportedly includes business losses, salary costs, and other operational expenditures linked to the alleged deficiencies in AWS’s service delivery.
The legal tussle has added a new layer of complexity to Meesho’s journey toward going public. The Bengaluru-based startup, known for enabling small businesses and individual entrepreneurs to sell products online at zero commission, has been one of India’s most closely watched ecommerce players. Backed by prominent investors such as SoftBank, Prosus Ventures, and Fidelity, Meesho’s IPO is expected to be one of the most anticipated listings in India’s tech ecosystem.
Industry analysts note that the timing of the legal dispute could pose a challenge for Meesho as it gears up for its public offering. Legal contingencies and ongoing arbitration cases are often flagged as risk factors in IPO filings, potentially influencing investor sentiment. However, Meesho maintains that it has robust grounds for its counterclaims and remains confident in its legal position.
The case highlights the growing dependence of Indian startups on cloud infrastructure providers like AWS, Google Cloud, and Microsoft Azure — and the potential conflicts that can arise from large-scale enterprise agreements. As the arbitration between Meesho and AWS unfolds, the outcome could have implications for future commercial relationships between Indian startups and global tech providers.
For now, Meesho continues to focus on expanding its platform, improving seller profitability, and strengthening its technology infrastructure, even as it navigates this ₹127.45 crore legal challenge with AWS ahead of its much-awaited IPO.
