The startup has initiated internal discussions to move its domicile back to India from Singapore due to the country’s improving financial conditions
Despite the process being in early stages, the startup is also reportedly thinking of going for an IPO post the culmination of the reverse flip
Freo claims to have realised a gross revenue of over INR 350 Cr in the fiscal year 2023-24 (FY24) with a "positive contribution margin"
Amid a growing list of Indian internet firms looking to shift their domiciles back to the country, digital banking platform Freo is reportedly planning to join the league as local markets begin to offer richer valuations for new economy scripts.
According to Moneycontrol, the startup has initiated internal discussions to move its domicile back to India from Singapore due to the country’s improving financial conditions. It is registered as Mycash Fintech in Singapore.
“Though at an early stage, the firm has initiated discussions to flip to India from Singapore. Several fintech firms today are doing this as it is easier to expand and even think of an IPO here. The process is in very early stages and will take a few months to get into shape,” a source told the publication.
The development comes months after the startup claimed that its gross revenue crossed INR 350 Cr in the fiscal year 2023-24 (FY24) with a “positive contribution margin.” Back then, it claimed that its revenues have grown five fold in the past five years.
Freo was launched initially as MoneyTap back in 2015 by Anuj Kacker, Kunal Varma and Bala Parthasarathy. Since 2021, MoneyTap
became a part of the larger Freo under which the startup offers a comprehensive range of products including credit lines, cards, loans, bill payments, credit on UPI, savings accounts, deposits, insurance solutions and financial utilities. The platform claims to be active in 1,200 cities and has a user base of 25 Mn. It counts the likes of Peak XV, Prime Venture Partners and New Enterprise Associates as its backers.n
Inc42 has reached out to Freo for comments on the development. The story will be updated based on the response.
If materialised, Freo would be able to capitalise on the recently introduced rebates introduced by the central government. About a week ago, the ministry of corporate affairs (MCA) trimmed down the reverse flip process by dissolving clearance from the National Company Law Tribunal (NCLT).
As per the amended Companies (Compromises, Arrangements and Amalgamations) Amendment Rules, 2024, only an approval from the Reserve Bank of India (RBI) for mergers or amalgamations of foreign entities with Indian entities is now required. Besides, startups looking to reverse flip will also have to seek the ministry’s approval for such India-bound mergers.
As of now, startups like Pine labs, Razorpay, among others are already in the process to move their domiciles to India while Flipkart and Eruditus are also mulling to undertake the move.
Addressing the trend, Commerce secretary Sunil Barthwal recently said that the strong growth of the Indian economy is stirring up reverse flipping in startups.
