Digital payments firm Razorpay, headquartered in Bengaluru, is in the process of relocating its parent entity from the US to India, amid tightening sectoral regulations.
What Happened? According to an ET report, the decision to move the parent entity coincides with the Indian government’s establishment of an expert committee to recommend measures to encourage local fintechs and other startups domiciled abroad to relocate to Gujarat International Finance Tec-City’s International Financial Services Centre (IFSC).
The committee, which includes representatives from the central bank, fintech founders, IFSCA, Gift City, and venture capital investors, is awaiting input from these stakeholders. Gift SEZ operates as an IFSC under the Special Economic Zones Act.
The development also follows Walmart-owned online payments firm PhonePe’s decision to move its holding company to India from Singapore months ago.
When the Y Combinator-backed Razorpay, valued at $7.5 billion (₹61,311.09 crore), raised funds from the renowned Silicon Valley incubator, it had to domicile itself in the U.S.
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Once Razorpay moves its parent company back to India, it could consider a potential listing in the country, said another person, who added, “The plan surrounding its IPO (initial public offering) is still somewhat distant, but the priority is to have the company domiciled in India.”
Razorpay, founded in 2014, is currently awaiting a final payment aggregator license from the Reserve Bank of India (RBI). Since December of last year, The fintech player, along with leading online payment platforms like PayU and Paytm, has been instructed by the central bank to halt the onboarding of new merchants.
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