Razorpay completes reverse flip to India, pays $150m for strategic homecoming

By Gloria Methri

In a move signalling confidence in India’s regulatory and startup ecosystem, Razorpay has completed its reverse flip, shifting its domicile from the United States back to India. The transition, which has been in the works for over a year, received final approval from the country’s Ministry of Corporate Affairs earlier this week.

The Bengaluru-headquartered payments and banking platform was initially incorporated in the US, like many Indian startups, in an effort to facilitate smoother global fundraising. However, in a strategic shift, Razorpay is now among the first major Indian unicorns to officially redomicile in India, marking a landmark moment for the country’s tech ecosystem.

Commenting on the development in a LinkedIn post, Shashank Kumar, Founder and Managing Director, Razorpay, said,  “India has always been our largest market. Today, I am proud to announce that it has also become our global headquarters. This isn’t just a structural shift; it’s a decisive vote of confidence in India’s economic future, positive regulatory environment, and the power of homegrown innovation.”

The Price of Going Home

The reverse flip comes at a steep cost to Razorpay. The company is reportedly set to pay over ₹1,200 crore (approximately $150 million) in taxes as part of the process of redomiciling. The tax implication stems from capital gains taxes levied on the revaluation of shares when migrating company ownership from one jurisdiction to another. Despite the substantial tax outlay, the company views the move as a long-term investment in India’s evolving digital economy.

The move is also likely to simplify compliance, facilitate faster decision-making, and strengthen the company’s eligibility for local IPO listing — a prospect that Razorpay is reportedly exploring in the coming years. The company currently holds a Payment Aggregator licence from the Reserve Bank of India and serves over 10 million businesses with solutions encompassing payments, payroll, and banking.

Razorpay’s reverse flip could set a precedent for other Indian startups that previously incorporated overseas to consider a homecoming now. Several unicorns, including Zepto, Groww, and Meesho, are reportedly exploring similar strategies to re-domicile.

The government has also indicated plans to streamline taxation and compliance hurdles for startups that choose to relocate their base to India.