The concept of “reverse flipping” is creating a buzz in the world of Indian startups. Many homegrown companies left the country once to set up headquarters in the US, Singapore or other places to access better funding opportunities as well as lighter tax burdens. The startups are now coming back to India and it is becoming a movement lately.
Flipping has been a common practice for years. Indian startups would shift ownership abroad and often listing on international stock exchanges like Nasdaq. They could attract higher valuations there along with a larger pool of investors. But things are changing now and more startups are choosing to reverse the process. More startups are now opting moving their base back to India. The reverse flipping is not just about patriotism, but it is also about smart business decisions.
The Indian economy is booming and and the IPO market is thriving. A total of 13 tech companies raised more than INR 29,000 crore by going public in India in 2024. Even more startups are expected to follow suit in 2025. Big names like Flipkart, Razorpay and Zepto are planning their “desh wapsi” (return to India). They are preparing to tap into the growing opportunities on Dalal Street. Companies like Ola Consumer, Physics Wallah and Ather Energy are also on the list of startups looking to go public.
Relocating is not cheap as investors had to pay INR 8,000 crore in taxes when PhonePe moved its headquarters back to India in 2022. The investors of Groww faced a similar hit of INR 1,340 crore last year. These companies felt India’s public markets, government policies and growing investor interest was worth the price.
The shift signals confidence in the potential of India. A survey lately found that 78% of investors believe access to Indian public markets is driving the reverse flipping trend. India is offering growth, stability and opportunities for the startups.
It is a turning point for the Indian startup ecosystem. The IPO boom is set to continue and investor confidence is at an all-time high. Reverse flipping could define the future of Indian startups. It is not just about returning home, but it is also about seizing the moment.
