Meesho’s Big Move: Shifting Back to India with ₹2,461 Crore Tax Payout

E-commerce startup Meesho is taking a bold step towards its highly anticipated IPO by redomiciling its headquarters from Delaware, US, to India, a move that comes with a massive tax payout of $288 million (₹2,461 crore). This marks one of the largest tax payments by an Indian startup in recent years, second only to PhonePe’s whopping $1 billion tax bill during a similar transition.

Why This Move Matters

The decision to relocate its base back to India is a strategic one, aimed at aligning Meesho’s operations more closely with its primary market and preparing for its public listing on Indian stock exchanges. According to sources quoted by Moneycontrol, the startup is on the verge of filing its Draft Red Herring Prospectus (DRHP) with SEBI, following the green light from the National Company Law Tribunal (NCLT).

“Meesho’s tax bill is a significant indicator of how serious the company is about its IPO plans,” a source close to the development said.

Funding Strategy Behind the Tax Payment

Earlier this year, Meesho had reportedly arranged a large funding round of $550-600 million to support its redomiciling process. Out of this, around half, primarily primary capital, was earmarked to cover the tax obligation. Notable investors such as Tiger Global and SoftBank contributed to this capital infusion, showing strong investor confidence in Meesho’s growth and future prospects.

The remaining $250-300 million from the round was executed as secondary share sales, allowing early investors to exit partially and make space for new investors.

“This dual-structured funding plan not only covered the tax bill but also helped reshape the company’s cap table in preparation for the IPO,” the source added.

What’s Next for Meesho?

Now that the NCLT has cleared the application for redomiciling, the final step is filing the DRHP with SEBI, which is expected in the coming weeks. This filing will officially kick off Meesho’s IPO journey, putting the company on the radar of Indian retail and institutional investors.

The company’s decision to return to Indian shores highlights a growing trend among Indian startups that initially set up their parent entities abroad for regulatory or tax reasons, but now see greater value and investor appeal in being headquartered in India, especially ahead of going public.

Conclusion

Meesho’s redomiciling, backed by a substantial tax payment and strong investor support, sets the stage for a potentially landmark IPO in the Indian tech ecosystem. It also underscores the confidence of global investors in Indian markets and Meesho’s own belief in the long-term potential of India’s digital commerce space.

Meesho’s ₹2,461 crore tax bill is not just a financial milestone – it’s a clear signal of its commitment to India’s capital markets and its IPO ambitions.

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