E-commerce giant Meesho is currently involved in a legal dispute with Amazon Web Services (AWS) India, a major technology partner, regarding allegations of unpaid cloud service bills.

Based on Meesho's draft red herring prospectus (DRHP), AWS has initiated legal action through a three-member tribunal in New Delhi under the Arbitration and Conciliation Act, 1996, claiming outstanding payments related to a Private Pricing Addendum (PPA) executed in February 2022.

AWS is seeking Rs 127.45 crore ($14.44 million) from Meesho, which includes "spend commitment shortfall payment amount, outstanding service fees, interest on the respective payments and the cost of arbitration".

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Meesho has contested the invoices, claiming "deficiencies in the services provided by AWS" and questioning the enforceability of the PPA's minimum commitment provision.

Through a counterclaim submitted on January 31, Meesho has sought Rs 86.49 crore, asserting business damages "due to disruption of business and inadequate support provided by AWS, salary costs incurred due to migration from services procured from AWS, along with interest and costs".

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AWS submitted its response in March and the case continues to be under review by the arbitral tribunal.

This conflict underscores Meesho's significant dependence on cloud infrastructure for operating its extensive value-commerce platform — spanning order processing to payment systems and recommendation engines. Such a disagreement with a prominent cloud service provider like AWS could result in operational and financial consequences for a business that handled 1.59 billion orders in FY25.

The DRHP further reveals that Meesho intends to designate Rs 1,390 crore from its forthcoming Rs 4,250-crore IPO towards enhancing its technology and cloud infrastructure, indicating an initiative to diversify and strengthen its infrastructure framework.

The AWS arbitration contributes to an expanding array of legal issues confronting Meesho, which is also dealing with tax and supplier conflicts valued at more than Rs 710 crore, including a Rs 572-crore income tax demand.

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Although the company continues to maintain positive cash flow and ranks among the most rapidly expanding e-commerce companies, these legal matters could become significant due diligence considerations for investors in advance of what is anticipated to be one of India's biggest technology public offerings in 2026.