Reverse Flip Gains Momentum: Why Indian Startups Are Coming Home A growing number of Indian startups originally incorporated abroad are now shifting their domicile back to India. This move commonly referred to as a "reverse flip" marks a significant shift in strategy for high-growth startups looking to align more closely with India's maturing capital markets, evolving regulatory landscape, and investor expectations.
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A growing number of Indian startups originally incorporated abroad are now shifting their domicile back to India. This move commonly referred to as a "reverse flip" marks a significant shift in strategy for high-growth startups looking to align more closely with India's maturing capital markets, evolving regulatory landscape, and investor expectations.
Several prominent startups have already completed or initiated this transition. In 2022, fintech major PhonePe set the tone by moving its headquarters from Singapore back to India. The company reportedly incurred a tax liability of INR 8,000 crore in the process, underlining the seriousness of the move.
More recently, Groww, a financial services platform, shifted its domicile from the US to India in March 2024. The startup paid approximately INR 1,340 crore in taxes as part of the relocation. Pine Labs received court approval in Singapore in May 2024 to move to India. Other startups such as Zepto, Razorpay, Meesho, and Dream11 are either in the process of redomiciling or actively exploring the shift.
Harshil Mathur, co-founder of Razor Pay, had said that, "India is a home market and a place where everybody knows and understands. From a listing perspective, it makes sense to be in India," reported Reuters India.
One of the key drivers of the shift being the IPO market in India and its valuation benefits. As more Indian startups mature and look to go public, local stock exchanges offer better valuation multiples and stronger retail investor interest. Domiciling in India is a prerequisite for listing on the NSE or BSE.
Manu Iyer, General Partner & Cofounder, Bluehill VC said that the industry is seeing a growing preference among startups and growth-stage companies to list locally and shift their domiciles back to India with one of the drivers being capital markets deepening and regulatory clarity improving. Beyond access to a maturing investor base, this trend reflects rising confidence in India's long-term economic trajectory and a desire to align more closely with domestic stakeholders.
"SEBI's reforms around listing which reduce compliance burden for tech startups aiming to go public and relaxed rules around profitability, lock-in and public shareholding make it a lot easier. Another reason is around the reduction of tax treaty benefits for various jurisdictions," said Iyer,
India's regulatory environment, particularly in fintech, data privacy, and intermediary obligations, increasingly requires local legal presence. Being domiciled in India helps companies navigate RBI, SEBI, and IT regulations more efficiently.
Roma Priya, Founder of Burgeon Law, said that startups shifting domiciles back to India and choosing to list locally is a reflection of changing ground realities.
"India's capital markets today offer deep liquidity, policy stability, and a maturing investor base that understands tech-driven businesses. For many founders, listing at home also strengthens brand resonance, simplifies compliance, and aligns with the shift toward long-term value creation over regulatory arbitrage. This is no longer just a symbolic move; it is a strategic one," said Priya.
Moreover, startups now have most of their teams, customers, and business operations in India. Redomiciling reduces structural inefficiencies, cuts legal duplication, and centralizes governance.
"I think for the mission, PhonePe is on … the move to India was right. India is where we started and where we are focused on… for various reasons like being a highly regulated entity and wanting to eventually list here, the change of domicile…is the right answer."
Sameer Nigam, CEO PhonePe, had earlier said that for the mission PhonePe is on, the move to India was right. India is where we started and where we are focused on, for various reasons like being a highly regulated entity and wanting to eventually list here, the change of domicile is the right answer. "
When it comes to investor confidence, Indian and global investors are more comfortable with predictable domestic regulations and clearer exit pathways via Indian IPOs. According to Peak XV's Mohit Bhatnagar, the shift is now "the biggest topic of discussion" among portfolio companies.
