Why are startups like Zepto and Groww leading shift from US, Singapore to India?

ReverseFlipping:   Zepto , quick-commerce firm, is to move its domicile from Singapore back to India. Quickly becoming a unicorn, firm intends to increase its Indian presence and attract local investments. According to a spokesperson, firm is currently in process of relocation, pending regulatory sanctions. Sources indicate that this will be part of strategy opted by company to convert into an Indian majority-owned business in 12-18 months from now, thus effectively meaning that focus will again go on domestic market. Recently Groww has paid $160 million in tax as company has shifted its base from US to India. company is first US-registered unicorn to shift its base from US to India, ors like Meesho, Razorpay are contemplating same.  

Reverse Flipping Trend

Zepto 's decision to reverse flip forms part of a trend that is shaping up among Indian startups. Eruditus, LivSpace, Groww, and Razorpay have alrey announced ir plans to reverse flip. new reverse flipping wave came on back of PhonePe in October 2022, when co-founder Sameer Nigam said many unicorns were looking for reverse flips because of how new regulatory environments were impacting m.

A Business-Friendly Ecosystem

re are various drivers for this trend. According to experts, efforts of government of India to improve business climate prevail with changes in tax regulations and enhanced access to capital from private equity and venture capital. As given in Economic Survey 2023, many startups are opting for this with hope of cashing in on burgeoning Indian market and its consumers.

For startups, since he office was established in India, y can gain a better understanding of local market dynamics and consumer preferences. 
IPO Opportunities on Rise. Indian IPO market is maturing and becoming more accessible to startups that would want to go public. Companies like Swiggy are now preparing to list on domestic exchanges, which creates a positive sentiment among investors. With a growing appetite for IPOs, se startups are ambitious to capitalize on favourable listing environment in India.

A Strategic Shift

This is indicative of dynamic change in startup landscape; strategically moving towards augmenting potential of Indian market, companies such as Zepto and Eruditus now return to India. Thus, with favourable tax policies and easy access to capital as well as a friendly regulative environment, this reverse flipping trend would most likely prevail and usher in a new era for Indian startups.