Razorpay shifts domicile to India as it preps for IPO

The restructuring places Razorpay alongside Groww, PhonePe, Pine Labs, and Zepto, who have shifted their corporate domicile. This reflects India's evolving startup ecosystem and regulatory environment.

May 29, 2025 - 11:50

Razorpay shifts domicile to India as it preps for IPO

Digital-payments unicorn Razorpay has completed its reverse flip, merging its US-registered parent company with its Indian subsidiary to consolidate its operations under domestic jurisdiction.

The payments processor, valued at $7.5 billion in its last funding round, has shifted its corporate structure by folding the American parent entity into Razorpay Software India Pvt Ltd. The process began in May 2023.

"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, Co-founder and Managing Director of Razorpay, in a statement to YourStory.

"It is more than a structural move; it's a powerful signal of belief in India's economic future, our regulatory ecosystem, and in the incredible potential of homegrown innovation."

The restructuring places Razorpay alongside Groww, PhonePe, Pine Labs, and Zepto, who have shifted their corporate domicile. This reflects India's evolving startup ecosystem and regulatory environment. These companies believe local incorporation will improve compliance and provide better access to the capital markets.

Razorpay's domicile shift was first reported by Moneycontrol.

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Last month, Razorpay completed its transition to a public entity structure by changing its name from Razorpay Software Private Limited to Razorpay Software Limited. This was part of the company's reverse flip process from the United States to India.

The move is also a key step in its journey towards an IPO on the Indian stock exchanges.

A company spokesperson said that becoming a public entity well before the IPO would help it align with governance best practices and ensure early readiness for the listing process. The company has stated its intention to go public in about two years.

In April this year, Dream Sports, the parent company of fantasy sports platform Dream11, completed its reverse flip from the US to India. The company described the move as a "ghar waapsi" (homecoming), joining a growing list of Indian startups shifting their domicile back to India.

A regulatory amendment in 2024 eliminated the need for NCLT (National Company Law Tribunal) approval for overseas companies merging with Indian firms, thus streamlining and accelerating the reverse flip process.

Previously, companies required approvals from both the Reserve Bank of India (RBI) and NCLT. Now, as per the fast-track route, only RBI approval is needed.

Edited by Swetha Kannan