CleverTap is planning to relocate its headquarters from San Francisco to Mumbai, aligning with its aim to pursue an IPO in India, based on favourable market conditions and potential higher valuations locally.
Despite the ongoing operations of its San Francisco office, CleverTap's move is part of a broader trend among Indian startups reversing their base back to India for benefits like tax advantages and simpler regulatory compliance.
This decision follows CleverTap's successful $105 million Series D funding round, boosting its valuation to $775 million and reflecting its robust revenue growth, despite a decline in profit in the last fiscal year.
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Amid a growing list of Indian internet firms looking to shift their domiciles back to the country, customer engagement and retention startup CleverTap is reportedly planning to join the league as local markets begin to offer richer valuations for new economy scripts.
As per Moneycontrols’ report, citing sources, CleverTap is in discussions with advisers to relocate its headquarters from San Francisco to India.
CleverTap cofounder Anand Jain told Inc42, “Relocating our headquarters back to Mumbai aligns with our goal to pursue an IPO in India, subject to market conditions.”
He added, “We are working closely with our advisers to outline the necessary steps and requirements for this transition. Our San Francisco office will remain fully operational, reinforcing our continued commitment to the US market.”
Founded in Mumbai in 2013 by Jain, Sunil Thomas and Suresh Kondamudi, CleverTap is currently headquartered in Mountain View, California. The company leverages machine learning and artificial intelligence to offer a comprehensive user engagement suite.
In 2022, the company raised $105 Mn in a Series D funding round led by global investment group CDPQ, along with participation from IIFL AMC Tech Fund, Tiger Global, and Sequoia India.
The round pushed CleverTap’s valuation to $775 Mn.
In FY23, CleverTap reported total revenue of INR 405.14 Cr, marking a 46% increase from FY22. However, its profit after tax decreased by 42% to INR 30.45 Cr in the same period.
CleverTap’s potential move comes amid a growing trend of Indian startups considering a reverse flip to India. PhonePe completed its relocation from Singapore to India in 2022, while Groww moved from the US to India in March 2024.
The trend of reverse flipping is driven by several factors, including tax benefits in India, easier regulatory compliance, and the potential for an Indian IPO.
However, the process is not without challenges. PhonePe, for instance, had to pay $900 Mn in taxes during its relocation from Singapore to India.
Pine Labs is currently awaiting approval from India’s National Company Law Tribunal (NCLT) to relocate from Singapore. Meanwhile, Razorpay and Meesho are also exploring options to shift their base from the U.S. to India, though Meesho has yet to finalise its decision. Similarly, Kreditbee and Eruditus are considering relocating to India, while Flipkart is engaged in internal discussions about a potential move from Singapore, with momentum expected to build in the coming months.
Recently, the corporate affairs ministry exempted overseas startups looking to merge with their wholly-owned Indian subsidiaries from seeking clearance from the National Company Law Tribunal (NCLT). The rules, effective from September 17, require the Reserve Bank of India’s approval for such mergers along with a nod from the government.
CleverTap serves over 2,000 customers across 100 countries, including major brands like Electronic Arts, TiltingPoint, TD Bank, and Papa John’s. The company engages with 5 Bn users every month and creates over 2.6 Mn campaigns monthly.
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