Startups like Razorpay and Groww Opting to Shift Base to India

Indian startups, inspired by PhonePe's move from Singapore to India, are considering returning home after venturing abroad.

By Sunil Sonkar
2 Min Read
Startups like Razorpay and Groww Opting to Shift Base to India

A plethora of Indian startups are considering returning back. Initially they ventured in various overseas locations. In September 2022, Walmart-owned fintech firm PhonePe set the precedent by shifting its base from Singapore to India.


Razorpay and Groww are among the startups contemplating moving their parent entities back to India. Razorpay, a digital payments firm valued at $7.5 billion, initially moved its business to the US to secure funds from Y Combinator. The company has initiated a multi-layered process to bring its parent entity back to India, a move supported by the management and board. This shift, if completed, might lead to a potential IPO listing for the payments firm. However, discussions on a reverse flip could involve a tax payment of $250-300 million in the US.

Rahul Kothari, Razorpay’s Chief Business Officer, mentioned in September that there were no immediate plans for a reverse flip. Shashank Kumar, the founder of Razorpay, expressed optimism about India’s growing fintech landscape, emphasizing the importance of simplifying processes for businesses, especially as digital commerce expands.

Reports circulating since May indicate that Groww, a full-stack financial services platform, is also planning to move its domicile from the US to India. In November, the wealth management firm applied to the National Company Law Tribunal for a cross-country merger, subject to clearance from the Karnataka tax department, the Reserve Bank of India (RBI), and other regulators.

Pine Labs, a payments firm valued at $5 billion, is moving back to India as well. Pine Labs CEO Amrish Rau stressed that the decision should consider whether the technology built is for global or domestic markets. Meesho, an online shopping platform, and Udaan, a B2B e-commerce firm, are reportedly planning to shift their holding companies back to India. Udaan has decided to pursue a public listing in the next year or so. These shifts reflect a strategic focus on India’s evolving fintech landscape and global market positioning.

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