Indian mutual fund and stock trading startup Groww paid $159.4 million in taxes by shifting its domicile from the United States to India, the company said in a statement on Monday.
Nearly a dozen Indian startups are in the process of shifting their headquarters to India from the United States and Singapore to better comply with Indian laws and facilitate IPOs in the country. The change of address creates a tax event for both the investors and the startup.
While the IPO market remains weak in the United States and many developed markets, India has become a hotbed for public offerings this year. The first nine months of 2024 saw nearly 70 IPOs in India, already representing the second-highest number of offerings in any calendar year on record.
A key reason for the influx of startups returning to India is the possibility of better analyst coverage, even for companies valued at less than $2 billion. This coverage is essential to attract institutional investors. Hundreds of Indian startups, many of them backed by accelerator Y Combinator, have chosen to set up headquarters in the United States in the last decade.
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