News Post

Regulatory reform could hasten homecoming of IPO-bound startups

VCCircle · 12d

- India's regulatory reform that scraps a time-consuming compliance step is expected to accelerate the homecoming of IPO-bound startups based abroad. - The removal of the approval requirement from the National Company Law Tribunal for reverse flip mergers with domestic subsidiaries has significantly reduced the time it takes for the process. - Indian startups, previously based abroad for better access to capital and tax benefits, are now looking to return home due to the promising IPO prospects and the ban on dual listings in India. - Companies like Razorpay, Pine Labs, KreditBee, Zepto, Eruditus, and InMobi are actively pursuing the reverse flip merger process in preparation for IPOs. - India has become an attractive market for IPOs, with the first nine months of 2022 witnessing a significant increase in capital raised compared to the same period last year. - The streamlined merger process and a preference for local firms by regulators further support the strategic move of startups opting for reverse flip mergers.