Reverse flipping
Topic: Industrial Policy, Public Sector, MSMEs and Disinvestment · NCERT: Beyond NCERT
Meaning
Flipping is when an Indian startup moves its parent company abroad, often to the US or Singapore. It does this to get foreign investors or easier listing rules. Reverse flipping means moving that parent company back to India. It matters because the firm then lists, pays tax and creates value in India.
Example
PhonePe, Groww, Zepto and Razorpay have moved their parent companies back to India. Several things pulled them home: a strong market for domestic IPOs (listing shares on an Indian stock exchange), GIFT IFSC (India's international financial centre) and the 2024 fast-track rules for cross-border mergers.
Related concepts
- Startup
- Bootstrapping
- Seed funding
- Business incubator
- Startup accelerator
- Soonicorn
- Decacorn
- Hectocorn
- Deep-tech startup
- Research and development intensity