A growing trend sees Indian startups, initially based abroad, utilising Singapore’s Scheme of Arrangement to re-domicile back to India.
This legal mechanism is proving instrumental for companies like Zepto and Pine Labs, facilitating their “reverse flip” to India, according to a Dentons report.
The move is largely driven by the allure of India’s burgeoning capital markets and favourable regulatory environment, which offer promising growth prospects and potential for initial public offerings (IPOs).
Singapore’s Scheme of Arrangement provides a structured yet flexible framework for these cross-border reorganisations, ensuring judicial oversight throughout the process. This mechanism is particularly appealing to companies seeking to streamline their operations and align more closely with India’s economic landscape.
The strategic re-domiciling of these startups underscores a significant shift in the business landscape, as companies increasingly recognise the advantages of being based in India. The move not only positions them to tap into local investment opportunities but also aligns with India’s growing reputation as a hub for innovation and entrepreneurship.
As more companies consider similar moves, the utilisation of Singapore’s legal frameworks could see further adoption, potentially influencing the dynamics of cross-border business operations in the region. This trend highlights the evolving strategies of startups aiming to maximise their growth potential by leveraging both international and local market advantages.
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