PhonePe’s investors had to cough up almost Rs 8,000 crore in taxes as the firm decided to domicile in India, said PhonePe’s cofounder and chief executive officer Sameer Nigam.
“I hope things will get easier. If you want to move from any other market to India as a domicile it is treated as a capital gains event for existing investors so they have to make a fresh mark to market valuation, you have to pay tax on the delta,” Nigam said during the firm’s first Youtube Live session on January 25 after it raised a huge round of $350 million last week.
The fundraise made the startup the most-valued fintech in India with a valuation of $12 billion.
In October 2022, Walmart-owned PhonePe announced that it has completed the process of moving its domicile from Singapore to India. ““The mission we are on is to solve for at-scale financial inclusion, digitization, ecosystem building in the country…India is where we started and India is where we will focus going ahead,” Nigam said.