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Dream11 shifts domicile from US to India

EntrackrEntrackr · 5m ago
Dream11 shifts domicile from US to India
Medial

Dream11 parent, Dream Sports Inc., has shifted its domicile from the US (United States) to India. The development comes months after introducing the fast track of a reverse merger. The board at Dream11 India, in January, passed a special resolution to approve the merger of Dream Sports Inc. with Sporta Technologies Private Limited under Section 233 of the Companies Act, 2013, its regulatory filing accessed from the Registrar of Companies shows. All the shares of Dream Sports Inc. will be transferred to Sporta Technologies Private Limited (Dream11 India) under the amalgamation procedure. “Dream Sports is leveraging tech to unlock the massive potential of India’s sports ecosystem. We have completed a ‘ghar waapsi’ and are now an Indian domiciled business,” the company said in a statement. Last year, the amendment was introduced for a fast-track route under Section 233 of the Companies Act, 2013, which bypasses NCLT approval for certain cross-border mergers between a foreign holding company and its Indian subsidiary, subject to RBI approval. For context, the DGGI (The Director General of Goods and Services Tax) has issued Rs 1.12 lakh crore demand notices to Dream11 and other gaming companies by imposing a 28% tax on the full face value of player collections on a real gaming platform instead of an 18% tax on its revenue. After a certain number of pleas by the gaming companies, the Supreme Court of India granted a stay or temporary relief on the GST (Goods and Services Tax) show-cause notices issued to several online gaming companies. Dream11 has not filed its annual statements for FY24. During the fiscal year ended March 2023, the company recorded 66% year-on-year growth to Rs 6,384 crore, with profits standing at Rs 188 crore. With this, Dream11 has joined the likes of Zepto, Groww, and PhonePe, which have relocated their domicile to India. A bunch of companies, such as Flipkart, KreditBee, Pine Labs, Razorpay, and Meesho, have also been working on reverse flips.

Zepto completes reverse flip from Singapore to India

EntrackrEntrackr · 7m ago
Zepto completes reverse flip from Singapore to India
Medial

Zepto completes reverse flip from Singapore to India Quick commerce platform Zepto has completed its transition from being domiciled in Singapore to India, according to the company’s Chief Financial Officer (CFO), Ramesh Bafna. This shift, commonly referred to as a reverse flip, will enable the Mumbai-based company to relocate its headquarters to India and initiate the process for an initial public offering (IPO), which has been in the works for several months. The development comes weeks after Zepto secured approval from the National Company Law Tribunal (NCLT) for its reverse merger. According to media reports, Zepto aims to raise approximately $400-500 million through its IPO and has selected Goldman Sachs, Morgan Stanley, and Axis Capital as its bankers. “Historic scenes on completion of #IndiaFirst reverse merger from Singapore to India in the #FastestEver timeline. This is a display of understanding of technicals, working with right partners, getting into nuts and bolts on execution, unblocking natural causes of delay and tactical calls real time by an empowered team,” said Bafna in a Linkedin post. With this, Zepto has joined the likes of Groww and PhonePe which relocated their domicile to India from US and Singapore respectively. A bunch of fintech companies such as Flipkart, KreditBee, Pine Labs, Razorpay, Meesho have been working on reverse flips. Pine Labs already received a final nod from Singapore court to shift its base to India. However, Zepto did not disclose the amount of tax it paid for the reverse flip. For instance, PhonePe paid Rs 8,000 crore, while Groww paid Rs 1,340 crore in taxes to complete the process. The quantum of the tax depends on the company’s valuation and third-party audits. Zepto recently raised $350 million in a funding round led by Motilal Oswal Private Wealth at a valuation to $5 billion. In 2024, the company secured an additional $1.35 billion, bringing its total funding to $1.85 billion since its inception. For the fiscal year ending in March 2024, Zepto’s revenue from operations surged 2.2X to Rs 4,454 crore from Rs 2,026 crore in FY23. During the period, its losses decreased slightly by 2% to Rs 1,248.6 crore.

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