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Razorpay Reverse Parent Identity from India to US: Bold Move
Combinator and Peak XV-backed fintech unicorn. Razorpay has completed its reverse flip procedure, shifting its parent company’s domicile from the United States to India, according to the latest startup news.
Summary:
1. Razorpay, a fintech startup, has completed its reverse flip procedure, shifting its parent company’s domicile from the United States to India.
2. The company plans to focus on fortifying its finances before an IPO in FY28, to have 6-8 quarters of flawless financial records.
3. The company was founded in 2014 by Shashank Kumar and Harshil Mathur, is backed by investors like Y Combinator, GIC, Sequoia Capital India, Ribbit Capital, Matrix Partners, and MasterCard.
Razorpay, which has started a fast-track process to change its domicile, confirmed this latest startup update to news sources.
Razorpay’s US-registered parent business and its Indian subsidiary, Razorpay Software India Pvt Ltd, were merged in a reverse flip. This revamp brings the company’s operations under Indian jurisdiction.
Before it intended to list on the Indian stock exchanges, the online payment company started the process of relocating its parent company from the United States to India in May 2023.
The decision is consistent with a trend among Indian firms such as PhonePe, Groww, and Zepto, which have moved their headquarters to India.
Reason Behind Razorpay Reverse Flip To India
The online payment company, which has begun a fast-track process to move its domicile, confirmed its expansion to the media agencies. The government’s regulatory measures help speed up the transition by decreasing the time required for reverse mergers from 12-18 months to three to four months. It has made it easier for entrepreneurs to connect their company structures with their target markets.
Following the completion of its reverse flip, Razorpay will now concentrate on fortifying its finances in anticipation of an IPO, which is anticipated to occur in FY28. Based on the latest startup updates, the company intends to have 6-8 quarters of flawless financial records before proceeding with the IPO.
According to news sources, Harshil Mathur, co-founder and CEO of this fintech startup, had said that the IPO will take place two years after the company became even.
“We have already started the process of reverse flipping to India, which will take between 6 and 12 months to complete. We’ve accounted for everything.
This online payment company was founded in 2014 by Shashank Kumar and Harshil Mathur, is backed by investors like Y Combinator, GIC, Sequoia Capital India, Ribbit Capital, Matrix Partners, MasterCard, and others, who have cumulatively invested more than $740 million in the company. The corporation was last valued at more than $7 billion.
The online payment company is also planning to concentrate on international expansion, with intentions to deploy services in Singapore and other Asian countries. The company has recently released additional services incorporating AI features, such as corporate credit cards for start-up founders in collaboration with Yes Bank. Established in 2014 by Harshil Mathur and Shashank Kumar, the company has secured $739 million in funding till now.
It is India’s only payments solution that allows businesses to accept, process, and send payments through its product suite. It supports all payment methods, including credit cards, debit cards, netbanking, UPI, and popular wallets like JioMoney, Mobikwik, Airtel Money, FreeCharge, Ola Money, and PayZapp.
RazorpayX enhances your corporate banking experience by providing effectiveness, efficiency, and flawlessness to all financial procedures. RazorpayX helps businesses to have access to fully functional current accounts, simplify payouts, and manage payroll compliance.
Similarly, Snabbit, a Mumbai-based business, just raised $19 million in a Series B funding round. The platform provides quick home services, such as for various household chores, via the smartphone.
