Razorpay's parent company moving back to India

Bengaluru-based digital payments company, Razorpay is moving its parent entity from the US back to India. Earlier this year, the Walmart-owned online payments firm PhonePe moved its holding company from Singapore to India.

As a Y-combinator-backed startup, Razorpay had to domicile itself in the US in order to raise funds. Razorpay offers payment services to merchants. 

The move comes at a time when the Indian government is putting in efforts to encourage local fintech companies and startups domiciled abroad to relocate to Gujarat International Finance Tech (Gift) City's International Financial Services Centre (IFSC). 

Razorpay is in the process of "reverse flipping," and according to a source, the company has confirmed that it had begun the process of reverse flipping from the US to India, but declined to share further details. 

According to another source, the payments firm could consider a listing in India after relocating its parent company. 

“The plan around its IPO (initial public offering) is still a bit far away, but the priority is to have the company domiciled in India,” the source said. 

Established in 2014, Razorpay is backed by investors like Y Combinator, GIC, Sequoia Capital India, Ribbit Capital, Matrix Partners, MasterCard, and others who have collectively invested over $740 million in the company. The company was last valued at over $7 billion.