Fintech
Fintech startups grow re-domiciled from US to India
The flow of domicile is moving in the opposite direction. India seems to offer better opportunities for startups than the US. Fintech startup Groww has taken its biggest step yet, and others may follow soon. He announced his return to his homeland. This is a significant move in the Indian startup ecosystem and would most likely choose to relocate its headquarters to India from overseas locations.
Groww CEO Lalit Keshre stressed the importance of returning to India even though the company has its origins abroad. It has always operated as an India-based company. With his official domicile he is now fully rooted in the country.
Earlier, Walmart-backed fintech startup PhonePe moved from Singapore to India. However, the company had to undergo a significant restructuring process, such as the relocation of businesses and employees and significant tax liabilities for investors.
There are a couple of good reasons to support startup re-domiciliation. The first is that being based in India can facilitate easier access to stock exchanges for future IPOs and this is one of the key considerations for new companies aiming for public listing. Furthermore, the Indian technology ecosystem is evolving rapidly and investors are gradually gaining confidence in the segment due to supportive government policies and attractive base for business operations.
Regulatory alignment of the Reserve Bank of India (RBI) is also playing an important role for fintech companies. It is ensuring smoother operations. Additionally, Nasscom and other similar organizations are making efforts to enable foreign-established startups to list on Indian stock exchanges.
Startups outside of fintech are also looking at home moves to take advantage of local opportunities while preparing for potential IPOs.