As of Monday, the Indian company Groww said in a statement that it had paid $159.4 million in taxes when it moved its headquarters from the U.S. to India.
Almost a dozen Indian startups are moving their headquarters from the U.S. and Singapore to India in order to better follow Indian rules and make it easier for them to go public in the country. Moving to a new home country causes a tax event for both owners and the new business.
The U.S. and many other developed markets still have slow IPO markets, but India has become a hotbed for them this year. India already has the second-highest amount of initial public offerings (IPOs) in any calendar year, with almost 70 IPOs in the first nine months of 2024.
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One big reason why so many startups are coming back to India is the chance to get better coverage from analysts, even for companies worth less than $2 billion. For attracting institutional investors, this publicity is very important. A lot of Indian startups, including many that were backed by Y Combinator, have set up shop in the U.S. over the past ten years.
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