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Meesho gets NCLT nod to relocate base to India

EntrackrEntrackr · 3m 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.

Pine Labs receives Singapore Court nod to shift base to India

EntrackrEntrackr · 1y ago
Pine Labs receives Singapore Court nod to shift base to India
Medial

Merchant commerce and payments platform Pine Labs has received approval from Singapore Court to amalgamate its Singapore entity, Pine Labs Limited (PLS) with its Indian company, Pine Labs Private Limited (PLI). PSL’s whole undertaking including all assets and liabilities shall be transferred and vested in PLI according to the amalgamation agreement, according to PLS’s regulatory filing in Singapore. All the shareholders of PLS (Singapore entity) will become Pine Labs Private Limited (PLI) shareholders and any pending legal proceedings against PSL shall be continued by PLI after the arrangement. The filing further states that following the National Company Law Tribunal (NCLT) order filed with the Registrar of Companies, the Singapore entity shall be dissolved without undergoing winding up. TechCrunch reported the development first. Pine Labs provides merchants with a variety of products and services, including cloud-connected point-of-sale machines, gifting and credit. Pine Labs has become the third fintech company after PhonePe and Groww which relocated its domicile to India from overseas. Currently, a clutch of fintech firms including KreditBee, Razorpay, Meesho, and Zepto have been working on shifting their ultimate holding entities to India. Most recently, Flipkart was in the headlines for shifting its base to India from Singapore. In April, US-based investment firms Baron Funds and Invesco marked up the valuation of Pine Labs to $5.8 billion and $4.8 billion, respectively. It’s worth noting that the valuation plays a crucial role in deciding the quantum of tax liabilities for shifting the domicile. Pine Labs has been trying for initial public offerings for the past few years. Last year, it also finalized bankers for the IPO in the US but the attempt didn’t materialize. The firm has not disclosed the timeline of listing on the bourses. Of late, fintech companies have been laying emphasis to be headquartered in India as regulators’ job become easier as far as diligence and monitoring are concerned. However, the reverse flips require hefty tax liabilities. For context, PhonePe’s investors paid Rs 8,000 crore in taxes to complete the process.

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