Razorpay moves parent entity to India before IPO

Despite being a costly endeavor, Razorpay's available funding will enable it to perform a reverse flip to India. Investors in PhonePe, which recently relocated to India from Singapore, paid almost Rs 8,000 crore in taxes.

"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.

"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.

The move follows Walmart-owned PhonePe moving its domicile from Singapore to India just months ago.

Sameer Nigam, PhonePe's founder, said the firm's investors had to pay almost Rs 8,000 crore in taxes.

In addition, SVB Financial Group, parent of Silicon Valley Bank, collapsed causing panic among Indian startups operating in the US.

"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.

Razorpay is backed by investors such as Y Combinator, GIC, Sequoia Capital India, Ribbit Capital, Matrix Partners, MasterCard, and others who have invested over $740 million in the startup since 2014. Over $7 billion was the last valuation.

According to the company's filings with the Ministry of Corporate Affairs, the fintech unicorn earned Rs 7.3 crores on its own in FY22, up 20 per cent on FY21. Razorpay reported Rs 1,481 crore in operational revenue.