Meesho shareholders approve $500m India IPO plan

Ecommerce platform Meesho has received shareholder approval to raise 4,250 crore rupee (US$500 million) through an initial public offering (IPO), according to filings with the Registrar of Companies.

The company plans to file its draft IPO prospectus confidentially with the Securities and Exchange Board of India (Sebi).

Shareholders also approved founder Vidit Aatrey as chairman, managing director, and CEO.

The IPO will include a fresh issue of equity shares worth 4,250 crore rupee (US$500 million) and an offer for sale by existing shareholders.

Meesho recently shifted its domicile from the US to India, aligning with its goal to list on Indian stock exchanges.

Major shareholders include Elevation Capital, Peak XV Partners, and Prosus, each with 13%–15% stakes, while SoftBank holds nearly 10%.

Meesho was last valued at US$3.9 billion during a secondary funding round.

🔗 Source: The Economic Times

🧠 Food for thought

1️⃣ Reverse flipping becomes the new norm for Indian tech IPOs

Meesho’s domicile shift from Delaware to India represents a significant trend among Indian startups preparing for public listings.

This “reverse flipping” movement includes companies like Razorpay and Groww, who are returning to India from foreign jurisdictions despite substantial tax implications. Meesho alone faces a $288 million tax liability for this move1.

The trend reflects fundamental changes in India’s startup ecosystem, where improved local regulations have diminished the advantages of foreign registration that previously attracted founders2.

Companies are recognizing that listing where they generate most of their revenue enhances investor confidence and potentially improves valuations. This is particularly relevant as India emerges as a significant IPO market globally, with 338 deals in 2024, a 44% increase from the previous year3.

This strategic repatriation signals a maturing ecosystem where founders no longer feel compelled to structure their companies abroad to attract global investment.