Fintech unicorn Razorpay has initiated the first stage of a multi-layered process to bring its US-based parent entity back to India, according to the media report. The Y Combinator-backed startup, which has domiciled itself in the US in order to raise funds.
Razorpay will be the second major startup to shift domicile to India, as the Indian government takes steps to encourage local fintech companies and startups domiciled abroad to relocate to Gujarat International Finance Tech City's International Financial Services Centre.
Earlier this year, payments firm PhonePe had moved base from Singapore to India in a run-up to public listing plans.
The Bengaluru-headquartered digital payments firm could consider a listing in India post relocation. Reports added, “The plan around its IPO (initial public offering) is still a bit far away, but the priority is to have the company domiciled in India."
Backed by Tiger Global, Sequoia Capital India, GIC, Lone Pine Capital, Alkeon Capital, and TCV, Razorpay was valued at around USD 7.5 billion in its last funding round in December 2021. The company’s total revenue for the fiscal 2022 jumped 75 per cent to Rs 1,485.7 crore from Rs 844.6 crore.
The company, which had turned profitable in FY21 on a standalone basis, recorded a profit of Rs 7.3 crore in FY22, up 18 per cent. It is yet to post profits on a consolidated basis.
In the most recent development, Razorpay was among the 32 entities that received in-principle approval for payment aggregator licence. The fintech platform would also be joining the government’s Open Network for Digital Commerce (ONDC) with its payment reconciliation service for network participants, including buyers, sellers, and logistic providers.