Leading Indian Fintech Startups Razorpay and Groww Consider Return Home Amidst Global Ventures

Several Indian startups are contemplating a return to their home country after venturing overseas. In September 2022, PhonePe, a fintech firm owned by Walmart, set the precedent by relocating from Singapore to India.

Razorpay and Groww are among the startups considering bringing their parent entities back to India. Razorpay, valued at USD 7.5 billion, initially moved operations to the US for funding from Y Combinator. The company has initiated a process to repatriate its parent entity, endorsed by management and the board. A successful shift may pave the way for a potential IPO, though discussions involve a potential US tax payment of USD 250-300 million.

Rahul Kothari, Razorpay’s Chief Business Officer, stated in September that there were no immediate plans for a reverse flip. Shashank Kumar, Razorpay’s founder, expressed optimism about India’s fintech landscape, emphasizing the need to simplify processes for businesses.

Reports suggest that Groww, a financial services platform, is also contemplating relocating from the US to India. Pine Labs, a payments firm valued at $5 billion, is returning to India. Pine Labs CEO Amrish Rau highlighted the decision should consider whether the technology is built 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. These shifts underscore a focus on India’s evolving fintech landscape and global market positioning.

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