Indian investment app Groww has become one of the first Indian startups to move back to India from the US, illustrating a broader trend among the local startup community.
The Bangalore-based startup, which helps consumers buy stocks and mutual funds, made the transition in March, said co-founder and chief executive officer Lalit Keshre. I wrote it in the post With X.
A growing number of Indian startups, particularly in the fintech space, are preparing to relocate their overseas holding companies to India in order to align with evolving local regulations and seek domestic stock listings.
Many Indian startups, especially those backed by Y Combinator, initially incorporated in the United States to gain better access to North American investors and capital.
Eight-year-old Groww, whose backers include YC, Peak XV Partners and Tiger Global, has been profitable in recent years. According to official data, the eponymous app is the most popular stockbroking service in the country.
Razorpay, Pine Labs, Zepto, Meesho, Udaan are other Indian startups in various stages of consideration to relocate their base to India.
Bengaluru-based PhonePe moved its headquarters from Singapore to India in 2022. The move by the Walmart-backed company cost the startup's investors nearly $1 billion in taxes, with Walmart paying the bulk of the tax bill.
Groww is still calculating the tax implications, according to people familiar with the matter.