Y Combinator and Peak XV-backed fintech unicorn Razorpay has completed its reverse flip process, shifting its parent company's domicile from the United States to India, documents accessed by Moneycontrol show.
Razorpay, which initiated a fast-track process to shift its domicile, confirmed the development to Moneycontrol.
The reverse flip involved merging Razorpay's US-registered parent entity with its Indian subsidiary, Razorpay Software India Pvt Ltd. This restructuring consolidates the company's operations under Indian jurisdiction.
Razorpay initiated the process to move its parent entity to India from the US in May 2023 ahead of its plans to list on the Indian bourses.
The decision mirrors a trend among Indian startups, including PhonePe, Groww, and Zepto, which have shifted their domiciles to India.
The government's regulatory reforms have facilitated the shift by reducing the time required for reverse mergers from 12-18 months to approximately three to four months. It has made it easier for startups to realign their corporate structures with their primary markets.
With its reverse flip complete, Razorpay will now focus on strengthening its financials in preparation for an initial public offering, expected around FY28. The company aims to achieve 6-8 quarters of clean financial records before proceeding with the IPO.
"We have already initiated the process of reverse flipping to India and this is going to take anywhere between 6-12 months to complete. We have accounted for the cost and everything... Expect IPO to be two years after our businesses break even," Harshil Mathur, co-founder and CEO of Razorpay told Moneycontrol in an earlier interaction.
Founded in 2014 by Shashank Kumar and Harshil Mathur, 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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