In a strategic move, wealth management startup Groww has transitioned its domicile from the US to India. This shift aligns with a growing trend among Indian startups, aiming to leverage the country’s maturing startup ecosystem. CEO Lalit Keshre confirmed the completion of this domicile transition in March 2024.
Details:
- Reverse-Flipping Trend: Groww joins the ranks of major fintech startups like PhonePe (backed by Walmart), which relocated their domicile from Singapore to India in October 2022.
- Regulatory Filing: In November 2023, Groww filed for a reverse merger between its India unit and its US operations with the National Company Law Tribunal (NCLT) in Bengaluru.
- Valuations and Profitability: Having been profitable for the last three years, Groww’s decision to move back to India was driven by rising valuations and a favorable domestic market.
- Tax Implications: The tax implications of this domicile shift are yet to be fully ascertained.
- Industry Landscape: Other Indian startups, including Pine Labs, Razorpay, Zepto, Eruditus, Meesho, and Udaan, are also considering moving their holding companies back to India.
- Regulatory Landscape: Financial regulators encourage fintech firms to be based in India and have all subsidiaries registered here.
In summary, Groww’s strategic shift underscores the allure of India’s startup ecosystem, positioning the company for continued growth. 🚀
