Razorpay, a digital payments firm valued at USD 7.5 billion, is expediting its plans to move its registered office from the US to India. 

To do this, it is restructuring its six Indian units under a single holding company.

Other startups based abroad are also swiftly moving to shift their registered entities to India.

Groww, an online stockbroker, has already completed its shift to India, while Zepto, a quick-commerce firm, has received board approval to do the same.

Razorpay is working with consulting firm Deloitte on the restructuring process, which is expected to result in reduced tax expenses for the company. 

The estimated tax outgo for Razorpay after the restructuring is up to USD 200 million.

The restructuring process involves transferring shareholding from a US unit to an Indian entity and is aimed at minimizing tax burdens. 

The valuation of a startup plays a key role in the tax implication of such restructuring.

The move to shift domicile to India is primarily driven by the desire to align with the local regulatory framework and to potentially prepare for an initial public offering (IPO) in the Indian market. 

Companies feel that they can have a better future in the Indian public markets than abroad.