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Groww Leads the Trend, Indian Startups Repatriating to India

Groww's Bold Move Reshapes Indian Startup Scene

10 May 2024


Kunal Tyagi

India produced 3X more unicorns than China in 2022.png
  • Groww, a leading Indian investment app, has relocated its headquarters from the United States back to India, marking a significant trend among Indian startups.

  • The move reflects a broader shift in the Indian entrepreneurial landscape, with startups like Groww realigning their operations with local regulations and eyeing domestic stock listings.

  • Other Indian startups, including Razorpay, Pine Labs, Zepto, Meesho, and Udaan, are also considering similar moves, indicating a growing momentum towards repatriation within the Indian startup ecosystem.

In a notable move reflecting a shift in the landscape of Indian startups, Groww, a prominent investment app, has recently relocated its domicile back to India from the United States. This decision, announced by Groww's co-founder and CEO, Lalit Keshre, marks a significant milestone in the journey of Indian startups, indicating a broader trend of repatriation among the local entrepreneurial community.

The decision by Groww to transition its headquarters to Bengaluru in March underscores a growing inclination among Indian startups, particularly in the fintech sector, to realign their overseas holding entities with the evolving regulatory framework in India. Moreover, the move aims to position these startups favorably for potential domestic stock listings, capitalizing on the burgeoning opportunities within the Indian market.

Historically, many Indian startups, especially those nurtured by Y Combinator, had chosen to incorporate in the United States to leverage better access to investors and capital in North America. However, the recent trend signals a strategic reevaluation, with startups like Groww leading the way in bringing their operations back to India.

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Groww, backed by prominent investors including YC, Peak XV Partners, and Tiger Global, boasts a robust track record of profitability over its eight-year journey. With its flagship app emerging as the preferred choice among consumers for stock broking services in India, Groww's decision to repatriate underscores its confidence in the local market and its commitment to fostering growth within the Indian startup ecosystem.

As Groww sets the precedent, other Indian startups are also contemplating similar moves. Companies like Razorpay, Pine Labs, Zepto, Meesho, and Udaan are reportedly in various stages of deliberation regarding relocating their bases to India. PhonePe, another Bengaluru-based startup backed by Walmart, has already made the transition in 2022 from Singapore, albeit with significant tax implications for its investors.

As Groww navigates the complexities of its transition, including computing tax implications, the broader narrative of Indian startups returning to their roots reflects a maturing ecosystem poised for sustained growth and innovation. With regulatory clarity and a conducive environment for entrepreneurship, India's startup landscape is witnessing a paradigm shift, with homecoming emerging as the new trajectory for ambitious ventures.

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