E-commerce firm secures NCLT approval in reverse-flip move ahead of IPO plans
Meesho has received the National Company Law Tribunal’s (NCLT) nod to shift its domicile from the United States back to India, marking a significant milestone in its corporate restructuring. The e-commerce platform will demerge its Indian operations from its US parent entity, allowing it to merge with its Indian arm and complete the much-anticipated “reverse flip.” , reported timesofindia.indiatimes.com.
According to sources, Meesho is expected to shell out nearly $288 million in taxes as part of the re-domiciling process. While the company did not officially comment on the tax figures, it confirmed the legal approval and described the move as a step to align its corporate structure with its operational base.
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Meesho now joins a growing list of Indian startups such as Zepto, Razorpay, and Groww that are reversing their overseas domiciles to better comply with Indian regulations and position themselves for domestic stock market listings
“This (NCLT) filing is a part of our ongoing transition to re-domicile in India. With the majority of our operations, including customers, sellers, creators and Valmo partners already based here, this step aligns our corporate structure with our day-to-day business footprint,” a Meesho spokesperson said.
The company is also in the process of preparing its draft IPO documents, sources added.
The trend of reverse flipping is gaining momentum as Indian startups look to leverage the buoyancy of local capital markets. Other major players, including PhonePe, Pine Labs, and Lenskart, are also preparing for IPOs in India.
