Groww joins the first wave of Indian startups moving from the US

Groww, an Indian investment app, has become one of the first startups in the country to return from the US to India, signaling a larger trend within the local startup community.

The Bangalore-based startup, which allows consumers to buy stocks and mutual funds, made the transition in March, its co-founder and chief executive Lalit Keshre said. wrote in an article on X.

A growing number of Indian startups, particularly in the fintech sector, are preparing to relocate their foreign holding entities to India in a bid to align with evolving local regulations and pursue listing on stock exchanges in the country .

Many Indian startups, particularly those backed by Y Combinator, initially incorporated in the United States to gain better access to investors and capital in North America.

Eight-year-old Groww, which counts YC, Peak XV Partners and Tiger Global among its backers, has been profitable for several years. Its eponymous app is the most popular stock market offering in the country, according to official data.

Other Indian startups in various stages of deliberations to move their base to India include Razorpay, Pine Labs, Zepto, Meesho and Udaan.

Bengaluru-based PhonePe is moving from Singapore to India in 2022. The Walmart-backed company’s move generated a tax implication of nearly $1 billion for the startup’s investors, and Walmart paid most of it of tax.

Groww is still calculating its tax implications, according to a person familiar with the matter.