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KreditBee plans ‘Ghar Wapsi’ from Singapore to India

EntrackrEntrackr · 1y ago
KreditBee plans ‘Ghar Wapsi’ from Singapore to India
Medial

Fintech company KreditBee is shifting its domicile to India from Singapore, sources aware of the development told Entrackr. With this move, the firm will join a bunch of fintech companies which are in the process of shifting their base to India from Singapore or the US (mostly Delaware). “Fintech companies including KreditBee want to be headquartered in India because the local ecosystem including public markets have matured in the past few years,” said one of the sources requesting anonymity. “Moreover, regulators tend to like fintech firms to be based out of the country as diligence and monitoring becomes easy.” KreditBee is registered as Finnove Private Limited in Singapore which has an over 70% holding in the Indian entity of the lending firm. According to sources, KreditBee has been working on a relocation plan for the past few months. “It’s seeking regulators’ inputs and figuring out tax liabilities,” said another source who also wished not to be named. Sources further added that another benefit such companies moving back to India hope to reap is from the rising valuations being offered by domestic public markets to technology firms. KreditBee has declined to comment on the story. Besides KreditBee, Pine Labs, Groww, Razorpay, Meesho and Zepto have been working on reverse flips. Walmart-owned PhonePe was the first to move its domicile to India and its investors paid a hefty Rs 8,000 crore in taxes to the government for this move. The quantum of the tax depends on the company’s valuation and third-party audits. KreditBee was valued at around $700 million during its latest tranche in March. It’s one of the few fintech companies that may turn unicorn in the next funding round. It has raised more than $400 million to date. Sources emphasized that a reverse flip will also smoothen KreditBee’s road to IPO. While the company isn’t in a rush, its founder and CEO Madhusudan Ekambaram anticipates a public listing by 2027. Six-year-old KreditBee facilitates loans up to Rs 4 lakh for a tenure of 2 to 15 months with an interest rate of up to 2.49%. As per the startup data intelligence platform TheKredible, Premji Invest is the largest external stakeholder with 23.44% followed by Newquest Asia and Alpine Capital. KreditBee posted Rs 64.33 crore profit whereas its revenue from operations grew to Rs 788.66 crore in FY23. Even in the first half of FY24, the company claimed a profit after tax of Rs 95 crore and expected to close the last fiscal with Rs 250-260 crore profit. The company majorly competes with MoneyTap, Fibe (formerly EarlySalary), LazyPay, and Sachin Bansal’s Navi, among others. A return to India, while driven by policy and market compulsions, will not be as simple as it sounds, thanks to the heavy bill it comes with for back taxes effectively. That might necessitate funding support for KreditBee, dispute being profitable, creating its own issues of valuations and change in stake. Going for a debt raise might also be a touch and go affair, considering the relatively higher interest rates now. Thus, figuring out the financials of the move will probably occupy a lot of mindspace for the firm now that it has decided to move. Investors will do well to hope and support any process that ensures a quicker resolution, to ensure the firm stays focused on its core business as well.

Flipback Tax: Razorpay restructures to cut levy; Groww pegs tax outgo at $70 million

Economic TimesEconomic Times · 1y ago
Flipback Tax: Razorpay restructures to cut levy; Groww pegs tax outgo at $70 million
Medial

Indian startups that were originally domiciled abroad are now making moves to shift their registered entities to India. Razorpay, a digital payments firm valued at $7.5 billion, has initiated a restructuring process to bring all of its India units under a single local holding company. This move is expected to reduce the company's tax outgo. Similarly, online stockbroker Groww has completed its domicile shift to India, accounting for around $60-70 million in taxes. Other startups, such as quick-commerce firm Zepto, are also planning to shift their domiciles to India. This trend is driven by the desire to align with regulatory frameworks and potentially prepare for IPOs in India.

Meesho gets NCLT nod to relocate base to India

EntrackrEntrackr · 1m ago
Meesho gets NCLT nod to relocate base to India
Medial

Meesho gets NCLT nod to relocate base to India The National Company Law Tribunal (NCLT) has approved Meesho’s move to shift its headquarters back to India from Delaware in the US, taking it a step closer to its initial public offering (IPO). This allows Meesho to separate from its US entity and merge back with its Indian company, completing its move back to India. A Moneycontrol report also added that Meesho is likely to pay $288 million in taxes for the reverse flip. Confirming the development to Entrackr, a Meesho spokesperson said, “This filing is part of our ongoing transition to re-domicile in India. With the majority of our operations, including customers, sellers, creators and Valmo partners already based here, this step aligns our corporate structure with our day-to-day business footprint.” However, the spokesperson did not comment on the tax amount paid by the company. Media reports suggest that Meesho has also shortlisted Morgan Stanley, Kotak Mahindra Capital, JP Morgan, and Citi as its bankers and is likely to launch its IPO by the end of this year. Last week, the homegrown e-commerce platform also transitioned into a public entity from a private one ahead of its $1 billion IPO. Meesho adds to the growing number of Indian startups such as Razorpay, PhonePe, Groww, Pine Labs, and Zepto that have paid hefty taxes to relocate their base back home after originally being incorporated overseas. While Zepto and Dream11 did not disclose the amount of tax paid for the reverse flip, Razorpay paid $150 million, PhonePe and Groww paid Rs 8,000 crore ($1 billion then) and Rs 1,340 crore ($157 million) in taxes, respectively, to complete the process. Meesho’s rival Flipkart, with an estimated valuation of $36 billion, is also working on relocating its domicile from Singapore to India.

Fintech unicorn Groww eyes $6-8 Bn IPO: Report

EntrackrEntrackr · 6m ago
Fintech unicorn Groww eyes $6-8 Bn IPO: Report
Medial

News All Stories Fintech unicorn Groww eyes $6-8 Bn IPO: Report Groww is the leading stockbroking company in India, with more than 13 million monthly active users, according to the latest data from the National Stock Exchange (NSE). Harsh Upadhyay 13 Jan 2025 13:26 IST Follow Us Stockbroking company Groww is gearing up for its initial public offering (IPO), according to a media report. While a few fintech startups have already gone public, the Lalit Keshre-led company will be the first contemporary startup from the stockbroking industry to take this step. TechCrunch, which first reported the development, added that Groww has begun talks with investment bankers and will soon choose advisers for the IPO. The firm is targeting a listing in 10-12 months, with a valuation goal between $6 billion to $8 billion. Groww has raised nearly $400 million to date from notable investors such as Peak XV, Tiger Global, Ribbit Capital, and YC Continuity, and was valued at around $3 billion following a $251 million Series E round in October 2021. It hasn’t raised a new round since then. It’s worth noting that Groww completed its domicile transition back to India from the US in May last year. Entrackr exclusively reported on Groww’s relocation plan in September 2023. Groww’s revenue from operations surged to Rs 3,145 crore in FY24. The company recorded a net loss of Rs 805 crore in FY24, primarily due to a one-time tax payment of Rs 1,340 crore for relocating its domicile to India. Entrackr has reached out to Groww for comments. Groww is the leading stockbroking company in India, with more than 13 million monthly active users. According to the latest data from the National Stock Exchange (NSE), it holds a 26.59% market share in this space as of December. Its arch-rivals, Zerodha and AngelOne, held market shares of 16.41% and 15.67%, respectively. Paytm was the first fintech from the Indian startup ecosystem to be listed on the stock exchange in 2021, followed by Mobikwik, which debuted on the bourses in December last year.

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