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Razorpay’s Taxing Flip, New-Age Tech Stocks Fumble & More
- Razorpay is facing significant tax liabilities amounting to over $400 Mn-$450 Mn due to its redomiciliation to India ahead of its IPO.
- To reduce its tax outgo, Razorpay has consolidated its Indian subsidiaries under a single local holding company, aiming to bring down the total tax payout to the US authorities.
- The reverse flip is crucial for Razorpay’s IPO plans in FY27, impacting its profitability with a potential tax payout of around INR 3,000 Cr.
- The tax liability for Razorpay's redomiciliation is influenced by its valuation, which was at $7.5 Bn during its last funding round in 2021.
- Other companies like PhonePe and Groww have also faced substantial tax payments for similar moves, highlighting the tax challenges in such transitions.
- The article shifts focus to the Indian startup ecosystem, discussing trends such as the rise of microdrama apps and the performance of new-age tech stocks.
- Paytm emerged as the top gainer among startup stocks, while the funding raised by Indian startups decreased by 60% compared to the previous week.
- Notable mentions include EaseMyTrip's return to profitability, BNP Paribas investing in Zomato, and India's efforts to boost indigenous language models through selected startups.
- The piece also covers insights on upcoming startup IPOs and layoffs in 2025 within the Indian startup landscape.
- In the spotlight section, the launch of UnderNeat in India's shapewear market by influencer Kusha Kapila and Vimarsh Razdan is discussed, targeting a share in the growing market.
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