Suspense crime, Digital Desk : Popular e-commerce platform Meesho is making a significant strategic move to relocate its legal headquarters from Delaware, USA, back to India. This process, known in the business world as “reverse flipping,” is a critical step as the company gears up for a highly anticipated Initial Public Offering (IPO) on the Indian stock market. However, this homecoming comes with a substantial cost: a one-time tax payment of approximately $28.8 million (about Rs 240 crore).
For years, many promising Indian startups registered their parent companies in countries like the US or Singapore to more easily attract global investors. Now, as these companies mature and look to list on India’s booming stock exchanges, they are “flipping” their domicile back home. This trend signals growing confidence in India’s economy and regulatory framework.
The complex process requires Meesho’s US parent company, Meesho Inc., to merge into its Indian subsidiary, Fashnear Technologies. This move needs approval from India’s corporate law authority, the National Company Law Tribunal (NCLT). The hefty tax bill is a capital gains tax that will be paid on behalf of its major investors—including global giants like SoftBank, Prosus, and Peak XV (formerly Sequoia Capital India)—as their ownership is transferred to the new, India-based entity.
Meesho is the latest in a line of major startups making this move, following in the footsteps of fintech leaders like PhonePe and Razorpay. The Indian government has actively encouraged this trend, aiming to bring valuable, high-growth companies back onto home soil before they go public.
By clearing this major tax and legal hurdle, Meesho is paving the way for its IPO, which is expected to take place within the next 12 to 18 months. This relocation solidifies its identity as a truly Indian company poised for a blockbuster listing on its domestic stock market.
Read More: Meesho’s Big Move: E-commerce Giant Pays Millions in Taxes to Become an Indian Company Ahead of Stock Market Debut
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