Why are Indian startups embracing the ‘reverse flip’ phenomenon

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Hello reader,

I don’t know if it’s the same for you, but I rely on startups for my daily needs, including groceries, medications, investments, payments, and transportation. There is hardly a day when I do not place an online order, book a ride via an app, or use a QR code for payment.

I live in India, and the startup ecosystem here is booming. But my opinion may be biased since I live in Bengaluru, the startup hub of the country.

However, this surge is not confined solely to India’s biggest cities. It’s now extending to Tier 2 and Tier 3 towns.

Many want in on the action. Startups who had once set up their parent entities abroad to attract foreign investors are now scrambling to return to their home country.

More than half a dozen Indian startups are making a beeline to return to India, even as the process entails a heavy tax burden. In this week’s Big Story, I delve into this trend of reverse flipping and explore the factors driving it.

— Samreen

THE BIG STORY

Image credit: Timmy Loen

Why are Indian startups ready to pay big for ‘reverse flip’?
Driven by favorable market conditions and homeground advantage, Indian startups are returning to their native country to set up their base.

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Photo Credit: Shutterstock

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