Razorpay will be the second major startup to shift domicile to India, as the Indian government takes steps to encourage local fintech companies and startups domiciled abroad to relocate to Gujarat International Finance Tech City’s International Financial Services Centre
Razorpay has initiated the first stage of a multi-layered process to bring its US-based parent entity back to India, according to the media report.
The Y Combinator-backed startup, which has domiciled itself in the US in order to raise funds, reported bwdisrupt.businessworld.in.
Razorpay will be the second major startup to shift domicile to India, as the Indian government takes steps to encourage local fintech companies and startups domiciled abroad to relocate to Gujarat International Finance Tech City’s International Financial Services Centre.
Earlier this year, payments firm PhonePe had moved base from Singapore to India in a run-up to public listing plans. The Bengaluru-headquartered digital payments firm could consider a listing in India post relocation.
The fintech platform would also be joining the government’s Open Network for Digital Commerce (ONDC) with its payment reconciliation service for network participants, including buyers, sellers, and logistic providers
Reports added, “The plan around its IPO (initial public offering) is still a bit far away, but the priority is to have the company domiciled in India.” Backed by Tiger Global, Sequoia Capital India, GIC, Lone Pine Capital, Alkeon Capital, and TCV, Razorpay was valued at around USD 7.
5 billion in its last funding round in December 2021. The company’s total revenue for the fiscal 2022 jumped 75 per cent to Rs 1,485.7 crore from Rs 844.6 crore.
The company, which had turned profitable in FY21 on a standalone basis, recorded a profit of Rs 7.3 crore in FY22, up 18 per cent.
It is yet to post profits on a consolidated basis. In the most recent development, Razorpay was among the 32 entities that received in-principle approval for payment aggregator licence.
The fintech platform would also be joining the government’s Open Network for Digital Commerce (ONDC) with its payment reconciliation service for network participants, including buyers, sellers, and logistic providers.
***********************************************************
Readers
These are extraordinary times. All of us have to rely on high-impact, trustworthy journalism. And this is especially true of the Indian Diaspora. Members of the Indian community overseas cannot be fed with inaccurate news.
Pravasi Samwad is a venture that has no shareholders. It is the result of an impassioned initiative of a handful of Indian journalists spread around the world. We have taken the small step forward with the pledge to provide news with accuracy, free from political and commercial influence. Our aim is to keep you, our readers, informed about developments at ‘home’ and across the world that affect you.
Please help us to keep our journalism independent and free.
In these difficult times, to run a news website requires finances. While every contribution, big or small, will makes a difference, we request our readers to put us in touch with advertisers worldwide. It will be a great help.
For more information: pravasisamwad00@gmail.com