Meesho IPO Journey Begins with $288M Tax for India Relocation

In what’s turning out to be a season of high-stakes moves for India’s most promising startups, social commerce giant Meesho is making a monumental shift—bringing its headquarters back to India from Delaware, USA. But this strategic redomiciling isn’t coming cheap.

The IPO-bound startup is reportedly set to pay a staggering $288 million (approx. ₹2,461 crore) in taxes to the US government as part of its relocation process—one of the highest such payouts by an Indian startup, only second to PhonePe’s $1 billion tax outgo during its own flip last year.

Meesho's Calculated Move Ahead of IPO

The timing is crucial. Meesho is planning to go public in India around Diwali 2025, aiming to raise up to $1 billion through the IPO, which could value the company at nearly $10 billion. To list in Indian markets, it's mandatory for the company to be domiciled in the country—a regulation that’s now driving many startups to reconsider their foreign corporate registrations.

With the National Company Law Tribunal (NCLT) recently clearing Meesho’s application to shift base, the startup has now crossed one of the last legal hurdles before it can file its draft red herring prospectus (DRHP) with SEBI.

Back to Bharat: The Rise of Redomiciling Trend

Meesho’s relocation is part of a broader trend among Indian startups—“flipping back to India”—a movement that’s seen several unicorns returning to Indian soil ahead of their public listings. While funding-friendly jurisdictions like Singapore or the US were preferred in the early 2010s and late 2010s, IPO-readiness and regulatory alignment have brought a change in narrative.

• PhonePe, previously domiciled in Singapore, paid $1 billion in taxes during its relocation.

• Groww, a stockbroking platform, shelled out $160 million.

• And Razorpay, another fintech major, recently paid around $150 million to shift base.

Now, Meesho joins this league—marking not just a symbolic but a structural shift in the Indian startup ecosystem, where global dreams are now rooted in local regulation.

The Funding Engine Behind the Flip

Interestingly, Meesho’s tax payout is backed by a smart capital strategy. According to reports, the company had raised $550-600 million earlier this year. About half of this round (nearly $300 million), which came in as primary capital from marquee investors like Tiger Global and SoftBank, was earmarked to pay the tax dues. The other half comprised secondary share sales, allowing early investors to dilute their stakes in favor of fresh institutional participation.

This planned split—between funding for operations and funding for compliance—shows how Indian startups are maturing beyond just growth metrics and are actively preparing for long-term sustainability and governance.

Why the Flip Matters

For Meesho, the move back to India isn't just about legal structure. It’s a strategic repositioning that signals confidence in Indian capital markets and a long-term commitment to Indian consumers and regulations.

Founded in 2015 by Vidit Aatrey and Sanjeev Barnwal, Meesho carved out a unique space in the hyper-competitive e-commerce sector, empowering millions of small resellers and entrepreneurs in tier 2, 3, and rural India. Its decision to list in India resonates with its roots—serving the Bharat market—and reflects a broader “build in India, stay in India” sentiment.

The company’s journey began with global ambitions: it was part of Y Combinator’s 2017 batch, which then required startups to be registered outside India to attract global funding. That was the norm for the ecosystem back then. But now, the winds have changed.

Meesho IPO Awaits

With the redomiciling process nearly complete, Meesho is now focusing on its next big milestone—its IPO. If successful, it will become one of the biggest Indian internet IPOs in recent years.

The move also sends a strong message to the broader ecosystem: Indian startups can scale globally, raise international capital, and still stay anchored in India—both in spirit and structure.

As India’s regulatory and capital market infrastructure matures, more startups are expected to follow Meesho’s path—bringing high-value companies and their future wealth creation back home.