Homegrown e-commerce giant Meesho has officially concluded its reverse flip to India, receiving final approval from the National Company Law Tribunal (NCLT) last week. With this move, Meesho joins a growing list of Indian unicorns reshoring their legal domiciles ahead of domestic stock market listings.
Key Highlights
- Reverse Flip Finalized
- Meesho’s board approved the merger of its US-based parent entity, Meesho Inc., with its Indian arm.
- Shares of the Indian entity were allotted to the company’s US investors, making Meesho a fully Indian entity on paper and in operations.
- Tax Implications
- According to media reports, the company is expected to pay between $280–$300 million in taxes to the US government as part of its redomiciling effort.
- IPO Preparation Underway
- The Softbank-backed startup is expected to file its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) in the coming months for a $1 billion IPO.
- Meesho has shortlisted top-tier investment banks including Morgan Stanley, Kotak Mahindra Capital, JP Morgan, and Citi Bank to lead the IPO process.
- Investor and Funding Overview
- The company has raised over $1 billion to date from prominent global investors such as Softbank, Prosus, Fidelity Investments, and Peak XV (formerly Sequoia Capital India).
- Strong Financial Performance
- Meesho recorded a 33% year-on-year increase in revenue to ₹7,615 crore in FY24.
- The company also reduced its adjusted losses by 97%, reporting a minimal loss of ₹53 crore, reflecting increased operational efficiency.
- Part of a Growing Trend
- Meesho now joins leading startups like Razorpay, Groww, Zepto, Dream11, and PhonePe that have relocated their legal domiciles from the US or Singapore back to India.
- Tax implications for similar moves include:
- Razorpay: $150 million
- PhonePe: ₹8,000 crore (~$1 billion)
- Groww: ₹1,340 crore (~$157 million)
- Competitive Landscape
- Meesho’s move mirrors its rival Flipkart, which is also in the process of shifting its domicile from Singapore to India, ahead of its own anticipated IPO. Flipkart’s estimated valuation stands at $36 billion.
