Groww Sees Valuation Cut In Reverse Flip Parade; Razorpay Likely To Follow Groww Sees Valuation Cut In Reverse Flip Parade; Razorpay Likely To Follow

Digital payments major Razorpay, which has sought board approval to shift its domicile to India, may likely see the same situation with a 30-40% cut in its valuation

Reverse flipping is when companies that are domiciled in foreign countries want to return to their home country. Fintech players are reverse flipping to India mainly due to the tightening regulatory norms

Fintech Unicorn Groww has completed its reverse flip, shifting its domicile to India from the US in May.

Fintech company groww has reportedly seen its fair market valuation being slashed to under $2 Bn after the company shifted its domicile from the US to India in May.

As per ET, citing people close to the matter, digital payments major Razorpay, which has sought board approval to shift its domicile to India, may likely see the same situation with a 30-40% cut in its valuation.

Groww paid INR 1,340 Cr ($160 Mn) in taxes to the US government, based on the new fair market value (FMV), which is more than 30% lower than its $3 Bn valuation during its last funding in 2021, the report added.

Reverse flipping is when companies that are domiciled in foreign countries want to return to their home country. Fintech players are reverse flipping to India mainly due to the tightening regulatory norms.

(The story will be updated soon)