Investment App Groww Returns to India; Zepto & Others May Follow

A wave of Indian startups is returning to their origin country.

Today, Groww has become one of the first startups from the country to shift its domicile back to India from the U.S., signalling a broader trend among the local startup community.

It’s an investment app company with a valuation of over $3 billion.

It has been in business for eight years and has YCombinator, Peak XV Partners, and Tiger Global as backers, which has been profitable for several years. According to official data, Groww’s app is the most popular stock broking offering in the US. Groww facilitates the buying of shares and mutual funds, shifted to India in March. 

Lalit Keshre, its co-founder and chief executive, shared this news in a post on X. 

“As of March 2024, Groww has completed its domicile transition back to India. For our customers, we have always been an India-based organisation for all practical purposes since day 1. With this update, the Groww group and its subsidiaries are completely based in India”: Groww CEO Lalit Keshre said in a post on X on Thursday.

As of March 2024, Groww has completed its domicile transition back to India. For our customers, we have always been an India-based organisation for all practical purposes since day 1. With this update, the Groww group and its subsidiaries are completely based in India. 

By the…

— Lalit Keshre (@lkeshre) May 9, 2024

Other Indian-Origin Startups May Return As Well:

Several Indian startups, especially in the fintech sector, are considering relocating their overseas holding entities to India to pursue domestic stock listings. 

Other Indian startups, such as Razorpay, Pine Labs, Zepto, Meesho, and Udaan, are also considering moving their base to India.

To access investors and capital in North America, many Indian startups, particularly those backed by Y Combinator, initially incorporated in the U.S.

Groww, which has been in business for eight years and has YC, Peak XV Partners, and Tiger Global as backers, has been profitable for several years. According to official data, its eponymous app is the most popular stock broking offering in the country.

PhonePe, which is based in Bengaluru and backed by Walmart, moved its domicile to India from Singapore in 2022. The move created a tax obligation of almost $1 billion for the startup's investors, which Walmart paid for the most part. 

According to media sources, Groww is still figuring out its tax implications after relocating.