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Indian stock and mutual fund trading firm Groww paid $159.4 million in taxes while moving its headquarters from the US to India, the company said in a statement on Monday.
Nearly a dozen Indian startups are moving their headquarters to India from the US and Singapore to better comply with Indian laws and facilitate initial public offerings in the country. A shift in domicile creates a tax event for both investors and startups.
While the IPO market remains weak in the US and many developed markets, India has emerged as a stronghold for IPOs this year. The first nine months of 2024 saw nearly 70 IPOs in India, already the second-highest number of offerings in any calendar year on record.
One of the main reasons for the influx of startups returning to India is the possibility of getting better analyst coverage, even for companies worth less than $2 billion. This coverage is critical to attract institutional investors. Hundreds of Indian startups — many of them backed by accelerator Y Combinator — have chosen to headquarter in the United States in the past decade.
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