Razorpay, a digital payments company based in Bengaluru, has decided to relocate its parent company from the United States to India. This move follows a similar decision made earlier this year by PhonePe, an online payments company owned by Walmart, which shifted it’s holding company from Singapore to India.
Razorpay, a payment services provider to merchants, had to establish its US domicile to raise funds as a Y-Combinator-backed startup.
The Indian government’s efforts to encourage local fintech companies and startups domiciled abroad to relocate to Gujarat International Finance Tech (Gift) City’s International Financial Services Centre (IFSC) has led Razorpay, a Bengaluru-based digital payments company, to move its parent entity back to India from the US. As a Y-combinator-backed startup, Razorpay had to domicile itself in the US to raise funds. Razorpay offers payment services to merchants and is in the process of “reverse flipping.” While the company confirmed the process, it declined to share further details.
The source said, “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.”
Razorpay, established in 2014, has received investments of over $740 million from investors like Y Combinator, GIC, Sequoia Capital India, Ribbit Capital, Matrix Partners, MasterCard, and others. The company’s last valuation was over $7 billion.
