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Dream11 shifts domicile from US to India

EntrackrEntrackr · 3m ago
Dream11 shifts domicile from US to India
Medial

Dream11 parent, Dream Sports Inc., has shifted its domicile from the US (United States) to India. The development comes months after introducing the fast track of a reverse merger. The board at Dream11 India, in January, passed a special resolution to approve the merger of Dream Sports Inc. with Sporta Technologies Private Limited under Section 233 of the Companies Act, 2013, its regulatory filing accessed from the Registrar of Companies shows. All the shares of Dream Sports Inc. will be transferred to Sporta Technologies Private Limited (Dream11 India) under the amalgamation procedure. “Dream Sports is leveraging tech to unlock the massive potential of India’s sports ecosystem. We have completed a ‘ghar waapsi’ and are now an Indian domiciled business,” the company said in a statement. Last year, the amendment was introduced for a fast-track route under Section 233 of the Companies Act, 2013, which bypasses NCLT approval for certain cross-border mergers between a foreign holding company and its Indian subsidiary, subject to RBI approval. For context, the DGGI (The Director General of Goods and Services Tax) has issued Rs 1.12 lakh crore demand notices to Dream11 and other gaming companies by imposing a 28% tax on the full face value of player collections on a real gaming platform instead of an 18% tax on its revenue. After a certain number of pleas by the gaming companies, the Supreme Court of India granted a stay or temporary relief on the GST (Goods and Services Tax) show-cause notices issued to several online gaming companies. Dream11 has not filed its annual statements for FY24. During the fiscal year ended March 2023, the company recorded 66% year-on-year growth to Rs 6,384 crore, with profits standing at Rs 188 crore. With this, Dream11 has joined the likes of Zepto, Groww, and PhonePe, which have relocated their domicile to India. A bunch of companies, such as Flipkart, KreditBee, Pine Labs, Razorpay, and Meesho, have also been working on reverse flips.

Meesho gets NCLT nod to relocate base to India

EntrackrEntrackr · 1m ago
Meesho gets NCLT nod to relocate base to India
Medial

Meesho gets NCLT nod to relocate base to India The National Company Law Tribunal (NCLT) has approved Meesho’s move to shift its headquarters back to India from Delaware in the US, taking it a step closer to its initial public offering (IPO). This allows Meesho to separate from its US entity and merge back with its Indian company, completing its move back to India. A Moneycontrol report also added that Meesho is likely to pay $288 million in taxes for the reverse flip. Confirming the development to Entrackr, a Meesho spokesperson said, “This filing is 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.” However, the spokesperson did not comment on the tax amount paid by the company. Media reports suggest that Meesho has also shortlisted Morgan Stanley, Kotak Mahindra Capital, JP Morgan, and Citi as its bankers and is likely to launch its IPO by the end of this year. Last week, the homegrown e-commerce platform also transitioned into a public entity from a private one ahead of its $1 billion IPO. Meesho adds to the growing number of Indian startups such as Razorpay, PhonePe, Groww, Pine Labs, and Zepto that have paid hefty taxes to relocate their base back home after originally being incorporated overseas. While Zepto and Dream11 did not disclose the amount of tax paid for the reverse flip, Razorpay paid $150 million, PhonePe and Groww paid Rs 8,000 crore ($1 billion then) and Rs 1,340 crore ($157 million) in taxes, respectively, to complete the process. Meesho’s rival Flipkart, with an estimated valuation of $36 billion, is also working on relocating its domicile from Singapore to India.

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