Razorpay’s Reverse Flip to India: A Strategic Move for Fintech Growth
Fintech unicorn Razorpay has completed its reverse flip to India, joining the increasing trend of unicorns relocating their headquarters back to their original country. This transition comes on the heels of Razorpay becoming a public limited company, following approval from the Regional Director in Hyderabad for the merger of Razorpay Inc. with Razorpay India.
Reports indicate that the Bengaluru-based payments unicorn aims for an IPO by 2026–27.
Razorpay’s co-founder and MD, Shashank Kumar, confirmed the reverse flip to India, stating that the completion of this process is a moment of immense pride for the company. He emphasized that this move is not just a structural change; it demonstrates a strong belief in India’s economic prospects, its regulatory framework, and the vast potential of local innovation.
Kumar noted that Razorpay was founded with the intention of creating value for India, and this latest action underscores their commitment to making India both their largest market and global HQ. He expressed confidence that India is not just a place for operations but the ideal location for leadership.
A number of well-known startups, including PhonePe, Zepto, Dream11, and Groww, have already completed a similar reverse flip by relocating back to India. Others, such as Meesho, Razorpay, Pine Labs, Eruditus, Livspace, Mensa, and KreditBee, are still awaiting final regulatory approvals for their moves. Recently, Flipkart’s board also sanctioned a transition of the company’s legal base from Singapore to India.
Razorpay has successfully secured over $800 million through numerous funding rounds, holding a valuation of about $7 billion. Like other firms that have undergone a reverse flip, Razorpay may encounter significant tax obligations due to its elevated valuation.
In FY24, Razorpay announced a revenue of Rs 2,068 crore with a profit of Rs 35 crore. The company competes in a dynamic market alongside rivals such as Cashfree, which reported Rs 642 crore in revenue for the same fiscal year, and PayU, which achieved FY24 revenues of $444 million (approximately Rs 3,800 crore).