In a landmark development for India’s fintech landscape, Razorpay has officially completed its long-anticipated reverse flip, relocating its parent company’s domicile from the United States to India. This strategic shift aligns with the company’s roadmap toward an Initial Public Offering (IPO) and affirms its commitment to building and scaling in India.
Key Highlights of Razorpay’s Reverse Flip
- Merger Approved: Razorpay Inc. has merged with Razorpay Software Pvt. Ltd., headquartered in Bengaluru.
- Regulatory Clearance: The move was approved by the Ministry of Corporate Affairs’ (MCA) Regional Director (Southeast Region) under streamlined guidelines that bypass the National Company Law Tribunal (NCLT).
- Regulatory Bodies Involved: The shift was completed with approvals from the Reserve Bank of India (RBI) and MCA, signifying full legal and compliance formalities.
“Yes, we’ve officially completed our reverse flip, and we couldn’t be more proud. It is more than a structural move; it’s a powerful signal of belief,” said Shashank Kumar, Co-founder of Razorpay.
“We started Razorpay with a dream to build for India, and today we are doubling down on that dream by making India not just our largest market, but our global headquarters.”
Aligning for IPO and Growth
- Razorpay converted into a public limited company in April 2024, a prerequisite step for going public in India.
- The reverse flip is part of Razorpay’s broader IPO readiness strategy and mirrors a growing trend among Indian startups to redomicile in India for regulatory clarity and local listing ambitions.
Other Startups Following the Reverse Flip Path
- Razorpay joins a rising cohort of startups like:
- Groww (recently completed its reverse flip and filed confidentially for IPO),
- Zepto, and
- Dream Sports.
- These startups are moving away from U.S. and Singapore jurisdictions to capitalize on India’s favorable market dynamics and maturing regulatory environment.
Razorpay’s Business Overview and Financial Snapshot
- Founded: 2014
- Valuation: $8 billion
- Funding Raised: ~$742 million from investors such as Peak XV Partners, Tiger Global, GIC, and Ribbit Capital
- Annual GMV: $180 billion
- FY24 Revenue (Payments Segment): ₹2,500 crore
- FY24 Net Profit (Payments): ₹34 crore
- Despite profits in the payments vertical, Razorpay’s overall business is still in the red.
Subsidiaries and Product Ecosystem
- RazorpayX: A neo-banking platform for businesses
- Cross-border Payments: RBI-authorized payment aggregator
- Payment Orchestration Tools: For enterprise-level automation and insights
Reverse Flip Comes With Tax Implications
- Razorpay is reportedly set to pay ₹1,245 crore in capital gains tax to the Indian government as part of the reverse flip.
- Similar to PhonePe, which paid nearly $1 billion in 2022 during its structural migration from Singapore to India.
Sectoral Significance
This move signifies a major milestone for India’s fintech and startup ecosystem, reinforcing India as a strong base not just for operations but also for corporate governance, regulatory compliance, and future capital markets activity.
As Razorpay prepares for its IPO—projected around 2026—the company remains focused on sustainable growth, operational profitability, and scaling from a firmly Indian base.
