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Anonymous
Hey I am on Medial • 1y
40% Indian unicorns aren’t actually Indian Razorpay is planning a ‘Bharat Wapsi' from US that could cost them around $300 in taxes. Today, I wanted to explain the process, Infamously called a "reverse flip". - PhonePe and Zepto might have to pay over $1 BILLION in taxes for their reverse flip. - Groww is still figuring out the best structure. The comeback path involves carefully executing a "share swap" strategy. In simple terms: Shareholders in Razorpay’s US entity would receive proportional shares in the Indian Entity. Then the US Entity would wind down operations. While this might seem strategic to IPO, Razorpay could face a huge tax bill. Even though the concept of unicorns moving back to India to IPO is exciting, it comes with complex challenges of tax and laws. Curious why this is done in the first place?
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