Meesho Moves Headquarters Back to India for IPO
The relocation of Meesho’s headquarters back to India has received approval from the National Company Law Tribunal (NCLT), bringing the company closer to its planned initial public offering (IPO). This transition allows Meesho to dissociate from its US entity and integrate back with its Indian branch, completing the move back home. According to a report from Moneycontrol, Meesho is anticipated to pay $288 million in taxes for this reverse relocation.
A spokesperson from Meesho confirmed this development to Startup Superb, stating that this filing represents an ongoing effort to re-domicile in India. With a majority of operations including customers, sellers, creators, and Valmo partners already based in India, this move aligns the corporate framework with the practical aspects of their business.
However, no comments were made regarding the specific tax sum paid by the company.
IPO Plans and Banking Partnerships
Meesho is reportedly in the process of selecting its banking partners for the IPO, having shortlisted Morgan Stanley, Kotak Mahindra Capital, JP Morgan, and Citi. The launch of the IPO is expected to take place by the end of this year. Recently, Meesho transitioned from a private entity to a public one in preparation for its anticipated $1 billion IPO.
Tax Obligations for Indian Startups
Meesho is part of a rising trend of Indian startups, including Razorpay, PhonePe, Groww, Pine Labs, and Zepto, that have incurred significant tax obligations to return their base to India after initial offshore incorporation. While companies like Zepto and Dream11 have not disclosed the tax amounts for their moves, Razorpay has paid $150 million, while PhonePe and Groww paid Rs 8,000 crore (approximately $1 billion) and Rs 1,340 crore (around $157 million), respectively. Furthermore, Flipkart, a competitor valued at an estimated $36 billion, is also considering relocating its headquarters from Singapore to India.