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Nearing its initial public offering (IPO) preparation, fintech major Razorpay has completed the reverse flip, merging its Delaware-registered parent entity with Indian subsidiary, Razorpay Software India Pvt Ltd, to consolidate operations in the country
“Yes, we’ve officially completed our reverse flip, and we couldn’t be more proud. This move marks a pivotal milestone in Razorpay’s journey,” said Shashank Kumar, cofounder and managing director at Razorpay.
This comes over a month after the startup converted into a public company. Back then, Razorpay said in a regulatory filing that it got the approval of its members at an extraordinary general meeting held on March 27 to change its name to ‘Razorpay Software Limited’ from ‘Razorpay Software Private Limited’.
Moneycontrol was the first to report the development.
According to earlier estimates, the tax liability to the US government for Razorpay’s cross-border domicile shift was estimated between $250-300 Mn. But to reduce their tax liability, Razorpay’s US-registered parent entity decided to bring its six India units under a single local holding company, Razorpay Software India, as part of its restructuring exercise. This process was said to be critical to reduce the startup’s overall tax outgo and bring it down to $200 Mn.
However, the startup has not yet revealed how much tax they had to cough up to the US government to complete its domicile shifting process.
(The story will be updated soon.)
The post With IPO On The Cards, Razorpay Moves Domicile To India appeared first on Inc42 Media.
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