E-commerce startup Meesho has taken a major step toward its IPO journey by securing approval from the National Company Law Tribunal (NCLT) to relocate its headquarters from Delaware to India. This move aligns with growing trends among Indian startups shifting base back to India for regulatory alignment and market readiness.
Meesho has received clearance from the NCLT to redomicile from the United States to India. As part of this transition, the company is expected to pay ₹2,461 crore ($288 million) in taxes, as per a Moneycontrol news report. This is one of the largest tax outlays made by an Indian startup in recent times, second only to PhonePe’s $1 billion tax payment during its own shift back to India.
As part of the restructuring, Meesho will now merge its operations into its Indian entity. This will complete the redomiciling process and streamline the company’s structure in line with local compliance norms. The move supports Meesho’s larger objective of launching an IPO, for which it plans to raise between $700 million and $800 million.
Meesho has already converted into a public entity and appointed Kotak Mahindra Capital, Citi, JP Morgan, and Morgan Stanley as merchant bankers for its upcoming public issue.
Read More: Meesho Turns into Public Company Ahead of $1 Billion IPO!
In January 2025, Meesho closed a funding round worth $550 million, including $250–270 million in fresh capital from new investors such as Tiger Global, Think Investments and Mars Growth Capital. A significant portion of this capital is expected to fund the tax payout linked to the reverse merger process.
Based on investor documents, Meesho classifies its revenue into two key segments: value-added services and transaction services. In H1 FY25:
Total revenue stood at ₹4,405 crore, a 24% YoY increase.
While Meesho posted profits of ₹10 crore and ₹17 crore in Q1 and Q2, respectively, through its core marketplace, the company recorded a consolidated loss of ₹41 crore in H1 FY25, mainly due to restructuring and new business costs.
Meesho’s net merchandise value (NMV) grew by 29% to ₹14,251 crore. Its contribution margin was ₹759 crore, amounting to 5.3% of net sales. The company’s annualised revenue run rate now exceeds ₹8,810 crore (around $1 billion).
In terms of order volume, Meesho processed 1.3 billion orders between April and December 2024, a 34% YoY rise. This volume equals its entire order count for FY24, establishing Meesho as the largest e-commerce platform in India by shipments.
Despite a lower average order value of ₹300 compared to ₹1,600 for Amazon and Flipkart, Meesho’s strategy of targeting non-tier-I markets with low-ticket products has enabled rapid scale. The platform also reported a 26% rise in annual transacting users, reaching 187 million by the end of December 2024.
With NCLT approval secured and a ₹2,461 crore tax payment expected, Meesho’s redomiciling marks a major milestone in its preparation for an IPO. The startup continues to expand its footprint in India’s e-commerce landscape through strong order volume, user growth and evolving financial metrics.
Disclaimer: This blog has been written exclusively for educational purposes. The securities or companies mentioned are only examples and not recommendations. This does not constitute a personal recommendation or investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Investments in the securities market are subject to market risks. Read all the related documents carefully before investing.
Published on: Jun 17, 2025, 1:42 PM IST
Team Angel One
We're Live on WhatsApp! Join our channel for market insights & updates
Get the link to download the App
