Meesho Pays $288 Million Tax to Relocate Headquarters from US to India Ahead of IPO

Meesho, the Indian e-commerce platform, has received approval from the National Company Law Tribunal (NCLT) to redomicile from the US to India by demerging its Indian operations from its US parent company. This move requires Meesho to pay approximately $288 million in taxes to the US government, making it one of the most expensive redomiciling processes among Indian startups, second only to PhonePe's $1 billion tax payment. The company has renamed its parent entity to Meesho Private Ltd and is preparing to file its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) ahead of its planned IPO, expected around the Diwali season with a valuation near $10 billion. Meesho's redomiciling reflects a broader trend among Indian tech startups, such as Groww and Razorpay, aligning their corporate structures with domestic regulations to facilitate IPOs and appeal to Indian investors. The company has also reported a significant reduction in losses and revenue growth in the latest financial year, highlighting operational improvements. Originally domiciled in the US due to early investor preferences, Meesho's transition aims to better reflect its primary business and customer base in India.