Although a reverse flip to India is an expensive process, Razorpay will be able to manage it with the resources that it has, sources told Moneycontrol. According to PhonePe, whose domicile recently changed from Singapore to India, its investors were required to pay close to Rs 8,000 crore in taxes.
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Fintech unicorn with Y Combinator and Sequoia backing Prior to its intention to list on the Indian bourses, insiders have told Moneycontrol that Razorpay is in the process of moving its parent organisation from the US to India. “The company’s long-term ambition of listing in India will be aided by the shift from the US to India. A source who spoke on the record added, “Razorpay wants to take advantage of domiciliating in India. The spokesman for Razorpay acknowledged the change.
The company’s representative stated, “We have been discussing and working on this for the past three to four months, and we are now in the process of transferring our parent firm from the US to India.
The announcement that PhonePe, a company owned by Walmart, had finished the process of relocating its headquarters from Singapore to India comes just a few months ago.
Razorpay will be able to achieve the same with its available cash, according to a different source, even if a reverse flip to India is an expensive event.
The creator of PhonePe, Sameer Nigam, claimed that because the company chose to have its legal residence in India, its investors had to pay close to Rs 8,000 crore in taxes.
The first publication to cover the news was The Economic Times.
Additionally, this is a reaction to the parent company of Silicon Valley Bank, SVB Financial Group, collapsing, which caused panic among several Indian entrepreneurs with bank accounts with SVB and in the US.
The action by Razorpay was primarily motivated by its long-term aspirations to list in India, sources said; they did not attribute it to the SVB collapse.
Razorpay, which was established in 2014 by Shashank Kumar and Harshil Mathur, is supported by financiers including Y Combinator, GIC, Sequoia Capital India, Sequoia Capital America, Ribbit Capital, Matrix Partners, MasterCard, and others who have invested a total of over $740 million in the business. Over $7 billion was last assigned to the company’s valuation.
The former deputy governor of the Reserve Bank of India (RBI), NS Vishwanathan, has been appointed by Razorpay as the board’s chairwoman. The advisory board will be responsible for developing standards for customer experience, governance, compliance, and risk management practises.
According to the company’s filings with the Ministry of Corporate Affairs, the fintech unicorn declared a standalone net profit of Rs 7.3 crores in FY22, an increase of 20% over the Rs 6.1 crores it reported in the previous fiscal. 1,481 crore rupees were the operational revenues recorded by Razorpay.