Meesho to Pay $288 Million Tax in Major Move Back to India Ahead of IPO
Once the shift is complete, Meesho aims to raise up to $1 billion through its IPO, which would value the company at around $10 billion.
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E-commerce platform Meesho is set to shell out $288 million (approximately INR 2,461 crore) in taxes as it shifts its headquarters from Delaware, US, back to India, according to a report by Moneycontrol. The hefty tax bill is one of the largest incurred by an Indian startup in recent memory, second only to PhonePe's $1 billion payout during its own relocation.
The tax is part of Meesho's broader strategy to re-domicile ahead of its planned initial public offering (IPO) in India, expected around Diwali this year. Sources told Moneycontrol that this move is one of the final formalities before the company files its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI). The National Company Law Tribunal (NCLT) has already approved Meesho's application to flip back to India, removing a major procedural hurdle.
Meesho began the redomiciling process in 2024, a reversal of its earlier structure. In its formative years, the startup had moved its base outside India—specifically to Delaware—to align with Y Combinator's requirements. The accelerator, one of Meesho's early backers, typically urged companies to incorporate in the US to ease access to capital and streamline global scaling.
In April 2024, it was reported that Meesho would pay around $300 million in taxes to facilitate the flip. At the time, the company had also raised between $550 million and $600 million to fund this transition. Roughly half of that came in as primary capital, contributed by investors such as Tiger Global and SoftBank, and was earmarked for the tax outgo. The other half was raised through secondary share sales, allowing early investors to exit partially and make room for new stakeholders.
Under the redomiciling arrangement, the full tax amount will be paid to the US government, a standard requirement when companies exit the American jurisdiction. Once the shift is complete, Meesho aims to raise up to $1 billion through its IPO, which would value the Bengaluru-based company at around $10 billion.
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