• Meesho will pay $288 million to relocate its headquarters from Delaware to India ahead of its IPO.
• The company raised 600 million, with half designated for tax payments.
• Meesho's re-domiciling application was approved by the NCLT, allowing it to file its draft red herring prospectus (DRHP) with SEBI.

E-commerce venture Meesho, in preparation for its initial public offering (IPO), is to shell out $288 million (around Rs 2,461 crore) in taxes to move its headquarters back to India from Delaware, USA, as per sources quoted by Moneycontrol. One of the biggest tax payouts by a startup in recent history, this is coming on the heels of PhonePe's big $1 billion tax expenditure.

Moneycontrol first reported in April 2024 that Meesho would pay approximately $300 million in taxes in the process of redomiciling. The firm had managed to raise between $550 million and $600 million, with half of the funds dedicated for tax payments. This initial capital was raised from investors like Tiger Global and SoftBank, and the rest half of about $250 million to $300 million, was derived from secondary sales of shares so that early investors could dilute their holdings for new investors.

Meesho's tax liability follows hot on the heels of the National Company Law Tribunal (NCLT) granting the approval for the company's re-domicile in India, a key move prior to its filing of the draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) in the weeks ahead. In accordance with routine practice, Meesho will pay the entire amount of tax to the US authorities as part of the transition.

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