Razorpay Initiates Headquarters Relocation from US to India

In a strategic move, fintech unicorn Razorpay has started the process of relocating its headquarters from the United States to India. This decision aligns with the growing trend of startups shifting their domicile back to their home country, facilitated by the Indian government's efforts to encourage reverse flipping.

The transition is expected to pave the way for Razorpay to go public by 2026. Despite significant tax implications estimated to be around $300 million, Razorpay's co-founder and CEO, Harshil Mathur, remains optimistic about the process.

Currently, Razorpay is seeking Reserve Bank of India (RBI) approval to expedite the process and reduce the workload on the National Company Law Tribunal (NCLT). Mathur emphasized the logical sense of listing in a market that understands Razorpay's operations.

Industry insiders suggest that the new rules have significantly shortened the timeline for reverse flipping to less than six months since ratification. Razorpay, valued at $7.5 billion, has begun discussions with investment bankers to prepare for its public offering.