Fintech firm Decentro initiates reverse-flip process from Singapore

Fintech firm Decentro has initiated its reverse flip, starting the process to shift its jurisdiction from Singapore to India within the next 12 months, a senior company executive said.

 

This comes at a time when the Bengaluru-based firm is raising about ₹30 crore as part of the Series-B funding round led by InfoEdge Ventures along with Groww founder Lalit Keshre’s fund Stargazer Growth, and existing investors.

 

The latest round of funding will enable the company to scale its existing line of products, including Know Your Customer (KYC) and onboarding, debt collections, and payments.

 

“I feel the (flip) can be done in 12 months because Pine Labs has already shown the way. Compliance costs go up if the process is delayed. If it’s a smaller company, with lesser numbers, the process is much easier to execute,” Rohit Taneja, founder and chief executive officer (CEO), Decentro, told Business Standard. 

 

The company joins a league of firms flipping back to India. Last week, Razorpay announced the firm had changed its domicile from the US to India. Fintech major PhonePe reverse flipped from Singapore more than two years ago. Stock broking platform Groww formally moved its domicile back to India from the US through a reverse flip by its parent firm in May last year.

 

At present, many Indian startups are domiciled in countries such as Singapore, Mauritius, the US, the UK, and Germany.

 

“The idea is how we can accelerate the whole process of being profitable over the next few years, and then look at public markets or an acquisition over time. This is all very early, so it’s hard to say anything on that. It’s also a bet on the Indian macro and the IPO market, which may continue to remain good,” Taneja said.

 

According to a recent report by Bay Capital, around five startups, including InMobi, KreditBee, and Meesho, are in the process of shifting their bases from jurisdictions such as Singapore and the US to India, with the goal of going public.