Groww Completes Domicile Shift Back to India: Joining a Fintech Trend

The company’s CEO, Lalit Keshre, announced the news on X (formerly Twitter), highlighting that this move brings the entire Groww group and its subsidiaries under Indian jurisdiction. This announcement coincides with Groww’s eighth anniversary.

Groww’s repatriation follows a trend in the Indian fintech industry

 Entrackr, a news platform focused on startups, first reported Groww’s relocation plans in September 2023. This move mirrors PhonePe’s recent shift from Singapore to India. Other fintech companies like KreditBee, Pine Labs, Razorpay, Meesho, and Zepto are also exploring similar “reverse flips.”

Experts believe this trend stems from a desire for smoother regulatory oversight 

Fintech companies headquartered in India benefit from streamlined interactions with regulatory bodies, simplifying compliance and due diligence processes. Additionally, the Indian government actively encourages domestic startups to redomicile in the country, particularly within the International Financial Services Centre (IFSC) GIFT City. This strategy aims to leverage India’s potential as a hub for international financial activity.

The financial implications of Groww’s domicile shift remain unclear

 While the company hasn’t disclosed the exact tax payments incurred, PhonePe’s investors reportedly paid a significant sum (Rs 8,000 crore) to facilitate their similar move. The specific tax burden for companies like Groww likely hinges on factors like valuation and third-party audits. According to TheKredible, a startup data platform, Groww’s last funding round valued the company at $3 billion (approximately Rs 22,500 crore).