The rational business decisions behind reverse flipping
Executive Brief • Key Highlights
Fast factual intelligence distilled for busy investors, executives, and answer bots:
- ✓Many Indian startups like PhonePe, Groww, and Flipkart have started returning to India.
- ✓These firms moved abroad earlier for regulatory reasons but now see value in listing on domestic stock markets.
- ✓In September 2024, the government introduced a fast-track merger route to help these companies return home more easily today.
Story at a Glance
- Category
- BUSINESS
- Reported By
- Business Line
- Reading Speed
- 3 Minute(s)
- Market Focus
- India Economy
In the previous column, we discussed how several successful Indian startups domicile themselves in Singapore, the US or other countries as a practical solution to regulatory challenges. Interestingly, the traffic has started reversing. PhonePe, Groww, Zepto, Pine Labs and Flipkart are among the startups that have returned to India, albeit at considerable effort and high cost. So, why are they doing it?
The biggest reason is India’s capital markets. A decade ago, an ambitious Indian startup often looked towards Nasdaq for an IPO. Today, the domestic stock markets have demonstrated a growing appetite for technology companies. Zomato, Nykaa, Policybazaar, FirstCry, Mamaearth and Swiggy have shown that Indian investors are willing to back new-age businesses, even if profitability is some distance away.
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