Meesho Battles AWS in ₹127 Crore Arbitration — Counters With ₹86 Crore Damages Ahead of IPO
The company alleges AWS breached contractual obligations by failing to resolve performance issues despite repeated alerts.
Indian e-commerce platform Meesho has entered into arbitration with Amazon Web Services India Pvt Ltd (AWS India), in a dispute over unpaid cloud services and alleged service deficiencies.
AWS claims Meesho failed to meet its payment commitments under a 2022 private pricing addendum, initiating proceedings with a tribunal in New Delhi for ₹127.45 crore.
Meesho, however, has counter-claimed ₹86.49 crore, stating it incurred losses from disrupted business operations, insufficient support from AWS, and migration costs to alternative cloud infrastructure.
The company alleges AWS breached contractual obligations by failing to resolve performance issues despite repeated alerts.
According to Meesho’s DRHP filed with the Securities and Exchange Board of India, the tribunal on May 3 ordered AWS to submit the addendum for stamping under the Arbitration & Conciliation Act 1996; the matter remains unresolved.
The dispute arises as Meesho prepares for its initial public offering, with the cloud-infrastructure disagreement spotlighting the company’s dependence on third-party platforms for its value-commerce ecosystem.
As of June 30, 2025, Meesho faces other legal and tax liabilities exceeding ₹710 crore, including vendor and GST disputes.
Meesho’s recent filings show revenue growth of 23% for FY25 to ₹9,389 crore, while net losses widened to ₹3,914.7 crore, largely due to one-time IPO-related costs. The arbitration case now adds a strategic layer to Meesho’s roadmap as it readies for a major public listing.
On October 20 2025, AWS suffered a major global outage that affected thousands of websites and applications worldwide. The disruption began around the US-EAST-1 region and was tied to a domain name system (DNS) issue in the company’s DynamoDB service.
The downtime sent shockwaves across the internet, knocking offline chat apps, banking platforms and entertainment services — impacted names included Snapchat, Fortnite, and major banks.
AWS confirmed that core services were fully restored by late evening (US-time), though residual delays lingered for some customers
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