Razorpay, a Bengaluru-based digital payments company, is moving its parent entity from the US back to India, a report in Economic Times quoted two people, who are familiar with the matter, as saying. Earlier this year, Walmart-owned online payments firm PhonePe moved its holding company from Singapore to India.
“They have kicked off the first stage of a multi-layered process to bring its parent entity back to India. It will take time and a good amount of funds, but the management and board are keen on it. This makes sense in a highly regulated sector like financial services,” ET quoted a source who wished to remain anonymous.
As a Y-combinator-backed startup, Razorpay had to domicile itself in the US in order to raise funds. Payment services are offered by Razorpay to merchants.
The move comes at a time when the Indian government is making efforts to encourage local fintech companies and startups domiciled abroad to relocate to Gujarat International Finance Tech (Gift) City's International Financial Services Centre (IFSC).
Moneycontrol could not independently verify this news development.
Razorpay is in the process of "reverse flipping," according to a person with knowledge of the matter.
In response to ET's quiries, Razorpay confirmed that the company had begun the process of reverse flipping from the US to India, but declined to share further details.
According to another source quoted in the report, the payments firm could consider a listing in India after relocating its parent company, adding, “The plan around its IPO (initial public offering) is still a bit far away, but the priority is to have the company domiciled in India.”
Recently, the fintech platform said it would be joining the government’s e-commerce project, the Open Network for Digital Commerce (ONDC). It will launch a payment reconciliation service for several network participants, which includes buyers, sellers, and logistic providers.
Established in 2014, Razorpay is backed by investors like Y Combinator, GIC, Sequoia Capital India, Ribbit Capital, Matrix Partners, MasterCard, and others who have collectively invested over $740 million in the company. The company was last valued at over $7 billion.
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