Facts for Prelims (FFP)
Source: Economic Times
Context: Several well-funded startups, including Pine Labs and Udaan, are considering relocating their holding companies to India, a trend known as “reverse flipping” ahead of potential IPOs.
- This shift is attributed to a tightening regulatory environment, potential IPO plans, and the desire to operate from the home market.
Reverse Flipping is a term used to describe the trend of overseas start-ups shifting their domicile to India and listing on Indian stock exchanges. Reverse flipping can be done through share swaps and inbound mergers
Some reasons for reverse flipping include:
- Access to venture capital
- Favourable tax regimes
- Better intellectual property protection
- Favourable government policies
