Meesho To Shell Out $288 Million In US Taxes As It Relocates HQ To India Before IPO
The tax outlay marked one of the largest of its kind among Indian startups in recent years, second only to fintech major PhonePe’s $1 billion tax bill incurred during its move from Singapore.
E-commerce firm Meesho is reportedly preparing to pay a significant $288 million (approximately Rs 2,461 crore) in taxes to the US government as part of its move to shift its corporate base from Delaware to India, according to media reports.
The tax outlay marked one of the largest of its kind among Indian startups in recent years, second only to fintech major PhonePe’s $1 billion tax bill incurred during its move from Singapore, reported Moneycontrol.
Back in April 2024, Meesho was expecting to pay around $300 million in taxes tied to the relocation. The Bengaluru-headquartered company had reportedly raised a funding round in the range of $550-600 million, with half of the capital infusion, largely contributed by Tiger Global, SoftBank, and other investors, earmarked to cover the tax liability. The rest of the round involved secondary share transactions where early backers offloaded their stakes to incoming investors.
NCLT Approval Cleared; DRHP Filing Next
The latest update on Meesho’s redomiciling comes shortly after the National Company Law Tribunal (NCLT) granted approval for the move. With this legal green light, the company is now expected to proceed with filing its Draft Red Herring Prospectus (DRHP) with SEBI in the coming weeks.
As is customary in such cross-border moves, the full tax payment will go to the US government. Indian authorities will not receive any portion of this amount, as redomiciling does not impose domestic tax liabilities in such cases.
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Among the Costliest Startup Flips
Though each case has its own structure, Meesho’s tax bill puts it in the league of some of the costliest redomiciling efforts by Indian startups. PhonePe led the chart with its $1 billion tax outgo in 2023, followed by Groww’s $160 million, both paid as part of their transition back to India.
IPO Plans Aligned With India Move
The tax payment and legal approval clear the path for Meesho’s India listing. The company had initially incorporated abroad to comply with the preferences of early investor Y Combinator, which encouraged overseas domiciling to ease fundraising and global scalability. However, with market conditions shifting, Meesho began its flip-back in 2024 and has since worked toward preparing for a domestic IPO.
Citing sources, the report indicated that Meesho is targeting a public issue around Diwali 2025 and may raise up to $1 billion. The listing is expected to value the company at approximately $10 billion.
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