Tiger Global-backed financial services company Groww has finished moving its main office from the US to India. This shift follows a trend of fintech companies returning home due to better economic conditions and a growing market in India.
At their 8th anniversary celebration, Groww’s CEO, Lalit Keshre, announced the move to employees. This move, known as a “reverse flip,” is becoming popular among startups, including those in fintech, e-commerce, stock broking, healthcare, and edtech, who want to operate from India.
Groww Completes Move Back to India
As of March 2024, Groww has officially shifted its main base back to India. CEO Lalit Keshre confirmed the move, emphasizing that Groww has always operated as an Indian organization. This milestone coincides with Groww’s 8th anniversary, with Keshre highlighting the journey ahead.
PhonePe’s Domicile Move
In October 2022, PhonePe, backed by Walmart, relocated its base from Singapore to India. The transition involved three key steps: transferring all businesses and subsidiaries to PhonePe Pvt Ltd India, creating a new employee stock ownership plan (ESOP), and migrating over 3,000 employees. Additionally, investors led by Walmart had to pay significant taxes to facilitate the shift.
Why Companies are Moving Bases to India
Experts suggest that being in India is advantageous for companies preparing to list on the country’s stock exchanges through an initial public offering (IPO). Other reasons include the growth of technology firms, investor trust, a strong economy, and supportive government policies. Eruditus, based in Singapore, is assessing the possibility of moving its operations to India. Similarly, fintech companies like Pine Labs and Razorpay are also contemplating the move. This shift is driven by local opportunities and regulatory alignment with the Reserve Bank of India (RBI).
Motivations Behind Fintech and E-commerce Firms Moving to India
Fintech companies are attracted to India for local business prospects and because of regulatory harmony with the Reserve Bank of India (RBI). Similarly, e-commerce players like Udaan, Meesho, and Pepperfry are considering the move to India, aiming to list on Indian stock exchanges and simplify their corporate structures.
Nasscom, representing India’s $245 billion tech industry, has recommended to the government that startups focused on India and incorporated overseas should be permitted to list on domestic stock exchanges within existing externalized structures. In 2016, Lalit Keshre, Harsh Jain, Ishan Bansal, and Neeraj Singh left their jobs at Flipkart to launch Groww, a venture aimed at simplifying investing. Founded in 2017, Groww has since grown into a prominent player in the investment space.
Lalit Keshre: From IIT Bombay to Groww
Lalit Keshre, a graduate of IIT Bombay, oversees various aspects of Groww’s business, focusing mainly on product development and enhancing customer experience. Before founding Groww, Keshre held a senior product management position at Flipkart, where he played a key role in launching and managing initiatives like Flipkart Quick and Flipkart Marketplace.
Before his tenure at Flipkart, Keshre founded an online learning company called Eduflix. He also contributed as an early team member at Ittiam Systems, gaining valuable experience.
Also Read:
RBI Says NBFCs Can Only Give Loan Cash Payout Up to 20,000 Rupees
Go Digit, Insurance Firm Backed by Fairfax, to Launch IPO on May 15
