Meesho Becomes an Indian Company, Reshuffles Board Ahead of US$1 Billion IPO

E-commerce platform Meesho has officially shifted its base from the United States to India, completing a process known as a reverse flip. This move was finalised after approval from the National Company Law Tribunal (NCLT) on May 27, 2025.

The company, backed by SoftBank, is now preparing to file its draft red herring prospectus (DRHP) in the coming weeks, paving the way for a highly anticipated initial public offering (IPO) worth about US$1 billion.

As a result of this redomiciliation, Meesho will pay approximately US$280–300 million in taxes to the US government.

How Did Meesho Perform in Q4 FY25?

Meesho claims to be the first horizontal Indian e-commerce firm to become profitable, generating a free cash flow of ₹197 crore during FY25. In FY 2023–24, Meesho significantly reduced its net loss (excluding ESOP costs) to ₹53 crore, down from ₹1,569 crore in the previous year. The company also achieved a 33% growth in revenue, jumping from ₹5,735 crore to ₹7,615 crore.

Bonus Shares Issued

To prepare for the IPO, Meesho approved a plan in May 2025 to issue ₹411.4 crore worth of bonus shares. The bonus shares were issued at a 47:1 ratio, increasing the company’s paid-up capital from ₹8.7 crore to ₹420.1 crore.

Board Restructuring Favours Larger Investors

Ahead of the IPO, Meesho has reshuffled its board, giving more influence to larger shareholders like Elevation Capital and Peak XV Partners.

Representatives from SoftBank (holding under 10%) and Prosus Ventures (12%), Sarthak Misra and Ashutosh Sharma, have stepped down from the board. In contrast, Elevation Capital (13.5%) and Peak XV Partners (12.5%) have retained their board seats through Mukul Arora and Mohit Bhatnagar respectively.

Despite stepping down, both SoftBank and Prosus remain important investors in Meesho.

Leadership Transition at Meesho

Additionally, Kalpana Morparia, former JP Morgan South and Southeast Asia Chairperson, has been replaced by Kimsuka Narasimhan, a senior executive with experience at Pepsico and Kimberly-Clark (Asia).

Read more: PhonePe IPO: Will the Walmart-Owned Company Go Public Soon?

Conclusion

Meesho’s shift to India and its efforts to streamline leadership reflect a clear focus on long-term growth and investor confidence. With a profitable year behind it and an IPO ahead, the company is setting a strong example in the Indian startup ecosystem.

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