India's Rising IPO Market Pulls Startups Away From Overseas Bases
Date
5/14/2024 4:24:51 AM
(MENAFN- KNN India) New Delhi, May 14 (KNN) India's surging IPO market is proving to be a powerful force pulling major startups back to relocate their overseas holding companies and bases to the country.
In a rising trend, several prominent Indian startups are undergoing "reverse flips" from bases in Singapore, the U.S. and other countries as they aim to tap into lucrative public listing opportunities at home.
Companies like fintech giants Pine Labs, Razorpay, KreditBee, e-commerce firms Udaan, Meesho, and edtech major Eruditus are among those exploring or already undertaking reverse flips despite significant tax liabilities.
Even major unicorns like Flipkart and Zepto are considering similar moves to drive value creation by listing on India's stock exchanges.
The domestic IPO market has witnessed a surge of activity lately, buoyed by investor confidence in the country's resilient economy, booming tech sector, and supportive government policies.
Major players like Walmart-backed PhonePe and fintech Groww have already completed their reverse flips to India.
For PhonePe's shift from Singapore, investors led by Walmart paid around Rs 8,000 crore in taxes.
The government has also encouraged "onshoring the Indian innovation" through initiatives like the International Financial Services Centre in Gujarat to lure startups.
As India's startup ecosystem matures and major players eye listings at home, the attraction of the domestic public markets is proving greater than the previous lure of overseas incorporation for funding and tax reasons that led startups to establish overseas holding companies initially.
(KNN Bureau)
MENAFN14052024000155011030ID1108209638
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.