Y Combinator and Sequoia-backed fintech unicorn Razorpay is in the process to move its parent entity to India from the US, ahead of its plans to list in the Indian bourses, sources told Moneycontrol.
"Shifting from the US to India will help the company's long-term goal of listing in India. Razorpay wants to tap the benefits of domiciling in India," said a source on the condition of anonymity.
Razorpay's spokesperson confirmed the development.
"We have been talking about and working on this for the past three-four months and now we are in the process of shifting our parent firm from the US to India," the company's spokesperson told Moneycontrol.
This comes just months after Walmart-owned PhonePe announced that it has completed the process of moving its domicile from Singapore to India.
While a reverse flip to India is a costly affair Razorpay will be able to manage the same with its available funding, said another source.
PhonePe's founder Sameer Nigam said that its investors had to cough up almost Rs 8,000 crore in taxes as the firm decided to domicile in India.
The Economic Times was the first to report the development.
This also comes after the Silicon Valley Bank’s parent SVB Financial Group collapsed causing panic among several Indian startups with bank accounts in the US and with SVB.
"Razorpay's move is not triggered by the SVB collapse, it is mainly due to its long-term plans of listing in India," Sources told.
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.
Razorpay recently announced setting up an advisory board that will focus on setting up standards around customer experience, governance, compliance, and risk management practices and roped in NS Vishwanathan, former deputy governor of Reserve Bank of India (RBI), as the chairperson of the board.
The fintech unicorn reported a standalone net profit of Rs 7.3 crores in FY22, up 20 per cent from the Rs 6.1 crores it posted in the previous fiscal, according to the company’s filings with the Ministry of Corporate Affairs. Razorpay reported an operational revenue of Rs 1,481 crore.
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