Meesho gets NCLT approval for its reverse flip from US
As part of the process of redomiciling to India, Meesho is reportedly expected to pay around $288 million in taxes to the US government.
Prosus-backed ecommerce unicorn Meesho has received approval from the National Company Law Tribunal (NCLT) to flip its headquarters back to India from Delaware, USA, as it closes in on its IPO dreams.
According to regulatory filings, Meesho has received a clearance to demerge with its US-based entity, Meesho Inc, and will proceed to merge with the Indian firm, completing its Indian redomiciling process.
"In view of the above discussion, we conclude that the objections/observations to the Scheme received from ROC/RD & Income Tax Department have been adequately explained by the Petitioner Companies and hence there is no impediment in approval of the Scheme. 22. The Composite Scheme of Arrangement in question as annexed at Annexure- A is approved and we hereby declare that the same is to be binding on all the shareholders and creditors of the Transferor, Transferee and Resulting While approving Companies," stated regulatory filings.
The development was first reported by Moneycontrol. The news report also said the company is expected to pay $288 million in taxes to the United States government as a part of its reverse flip. If this happens, it would be one of the largest tax bills paid by Indian startups domiciled in the US.
PhonePe paid about $1 billion for shifting its base to India from Singapore. IPO-bound Groww is reported to have paid $160 million, while fintech player Razorpay reportedly paid $150 million.
Edited by Swetha Kannan