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Reverse flip

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