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Economic Times
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Meesho concludes reverse flip process; likely to file DRHP in 2–3 weeks
- Meesho, an ecommerce marketplace, has completed its reverse flip process and shifted its domicile to India.
- The company is expected to file the draft prospectus for its IPO in the next two to three weeks.
- The National Company Law Tribunal approved Meesho's reverse flip, which is likely to incur a tax of $280-300 million in the US.
- Meesho joins other Indian startups like Groww and Razorpay in moving their domiciles to India.
- Originally incorporated in the US for better access to global capital, Meesho relocates to India in preparation for an IPO on Indian stock exchanges.
- Meesho closed a $550 million funding round with new investors like Tiger Global and valued the company at around $3.9-4 billion.
- Kotak Mahindra Capital, Citi, JP Morgan, and Morgan Stanley are appointed as merchant bankers for Meesho's public issue.
- Meesho's rival Flipkart is also planning to redomicile from Singapore to India for an IPO in 2026.
- The company recorded 34% YOY growth in orders totaling 1.3 billion during the April-December 2024 period.
- Meesho had 187 million unique annual users as of December 31, a 26% increase from the previous year.
- CLSA reports Meesho at a GMV run rate of $6.2 billion and estimates a 26% compound annual growth rate over the next six years.
- Meesho's market share was estimated to be 37% in terms of order volume for 2024 and around 8.5% in terms of GMV.
- The company is focused on its upcoming IPO in India after completing the reverse flip process.
- Meesho's shift is part of a trend among Indian startups to relocate to India for potential stock market listings.
- The company's recent funding round brought in new investors and valued Meesho close to $4 billion.
- Meesho's growth in users and order volume highlights its expansion in the ecommerce market.
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