Explainer | Change In Domicile Status: Why Startups Are Returning Home

Setting up headquarters overseas was seen as a way to enhance startups' valuation and attract capital, particularly for initial public offers abroad.

Groww has joined PhonePe, Urban Ladder & Pepperfry in relocating its holding company to India, indicating a growing trend among startups looking to capitalise on India's growing economy, explain Sumit Sinha & Ashima Dewan.

l Growing trend of startups relocating to India

RECENTLY, GROWW CEO and co-founder Lalit Keshre announced on X that the fintech had completed its domicile transition back to India. With Groww deciding to relocate to India, it joins the likes of PhonePe, Urban Ladder and Pepperfry who have relocated their holding companies back to India. It has been fairly common in the startup space for founders to establish their holding companies outside India despite primarily operating from India. This strategic approach is aimed to improve valuations and capitalise on corporate and tax benefits from host