Meesho Pays the Price to Come Home — $300M Tax Bill in Reverse Flip
Bengaluru, India – June 17, 2025 — Ecommerce unicorn Meesho has received the green light from the Bengaluru bench of the National Company Law Tribunal (NCLT) to carry out its reverse flip — a move that will see the company shift its domicile from the United States back to India. This strategic restructuring marks a significant milestone as Meesho prepares for its much-anticipated initial public offering (IPO) on Indian exchanges.
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The reverse flip, which involves demerging Meesho’s Indian operations from its US-based parent, is expected to result in a substantial tax liability of approximately $280–300 million in the United States, according to sources familiar with the matter.
The NCLT, in its order, stated that all objections raised by the Registrar of Companies (ROC), the regional director, and the income tax department had been adequately addressed by Meesho, clearing the path for approval.
Confirming the development, a company spokesperson said, “With the majority of our operations — including customers, sellers, creators, and logistics partners — already based in India, this step aligns our corporate structure with our day-to-day business footprint.”
The company joins a growing cohort of Indian startups that were originally incorporated abroad — often in the US or Singapore — to attract global capital, but are now re-domiciling in India ahead of public listings. Other Y Combinator-backed firms such as Groww and Razorpay have already undertaken similar transitions. Razorpay completed its reverse flip in May, while Groww has filed draft IPO papers with SEBI, targeting a $700 million to $1 billion raise.
Meesho had filed for NCLT approval in January and has since closed a $550 million funding round, primarily through secondary transactions. The deal, which brought in new investors including Tiger Global, Mars Growth Capital, and Think Investments, valued the company at around $3.9–4 billion — slightly below its peak $5 billion valuation.
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