Is India Becoming the New Hub for Innovative Tech Startups?

Pine Labs and Zepto, both valued at significant amounts, are considering relocating their headquarters to India. Pine Labs, valued at $5 billion, is seeking approval for a cross-border merger involving its Singapore-based holding company and its Indian operations.

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Discussions have been initiated with the National Company Law Tribunal (NCLT) and regulatory authorities in Singapore, with the proposal awaiting an NCLT hearing in India later this month. Similarly, Zepto is in the advanced stages of filing a similar application for relocation.

Image source NRI Legal Services

However, these potential moves raise concerns about tax implications for the companies. depending on the chosen route, they will need to navigate tax obligations in their current authority in India, with the amount determined by company valuations and third-party audits.

Despite these concerns, the appeal of higher valuations in the Indian market remains a significant driving factor for these transitions, especially for consumer brands and e-commerce firms with a strong presence and brand recognition in India.

For fintech companies like Pine Labs, the regulatory frameworks in India offer favourable conditions for a return, further encouraging the shifting process. Many Indian-origin firms currently settling abroad have sought legal advice and engaged with government officials.