The domicile flow is shifting in reverse direction. India seems offering better opportunity to startups than the United States. Fintech startup Groww has taken the major step and others may follow soon. It has announced returning to home country. It is a significant move in the Indian startup ecosystem and may more probably would choose relocating headquarters to India from overseas locations.<\/p>\n
Groww CEO Lalit Keshre highlighted the significance of moving back to India even though the company has its origin abroad. It has always operated as an India-based company. With the official domicile it is now fully rooted in the country.<\/p>\n
Earlier, Walmart backed fintech startup PhonePe shifted from Singapore to India. However, the company had to undergo significant restructuring process like transferring of businesses as well as employees and substantial tax liabilities for the investors.<\/p>\n
There are a couple of good reasons to argue re-domiciling of startups. The first and foremost is that being based in India can facilitate easier access to the stock exchanges for future IPOs and this is one of the key considerations for new companies eyeing public listings. Moreover, Indian technology ecosystem is evolving at rapid pace and gradually investors are gaining confidence in the segment due to supportive government policies and attractive base for business operations.<\/p>\n
Reserve Bank of India (RBI) regulatory alignment is also playing an important role for fintech firms. It is ensuring smoother operations. Moreover, Nasscom and other similar organizations are putting efforts to enable overseas-incorporated startups to list on Indian exchanges.<\/p>\n
Startups beyond fintech are also eyeing on domicile shifts to capitalize on local opportunities and simultaneously get prepared for potential stock market listings.<\/p>\n","protected":false},"excerpt":{"rendered":"