Jobaaj Stories
Payments and finserv unicorn PhonePe has announced that it has completed the process of shifting its domicile from Singapore to India.
For the unversed, PhonePe is one of the most prominent UPI-based payment apps in India with a market share of 47% in the same. It was launched in 2015 only to be acquired by Walmart-owned Flipkart a year later. It provides a payment platform to its customers and provides financial services as well since 2017.
JSW cement raises funds for expansion plans for the 3rd time! Read more.
Over the past year, it moved all the businesses and subsidiaries of PhonePe Singapore to PhonePe Pvt. Ltd. directly. As part of its shift, the company approved a new ESOP plan as well as migrated the existing ESOPs for 3,000+ employees to India. Moreover, the company has also shifted the ownership of the recently acquired IndusOS Appstore to India, thereby bringing all businesses and entities under it to India.
But why was the company listed in Singapore in the first place?
Although India has 107 unicorns, several unicorns and startups are registered outside India, particularly in Singapore.
Although India has had a Startup India program active since 2016, India has a complex startup ecosystem that is regulation-heavy with a tinge of corruption persisting in the environment.
Moreover, the procedures for incorporating companies are cumbersome, and the high number of regulations and a low Ease of Doing Business (EoDB) have compelled Indian startups to consider other countries as ideal destinations.
India ranked 63rd in EoDB in a World Bank Report, falling behind countries like Latvia, Kazakhstan, Estonia, Chile, and Mexico.
On the other hand, Singapore ranks 2nd on the EoDB list. Moreover, its low tax structure, political stability, low crime rates, simplicity in business laws, corruption-free environment, and overall economic ecosystem make Singapore an excellent destination for startups.
There were rumors about PhonePe prepping for an IPO in June 2022, but the same was disregarded by the company. However, CEO Sameer Nigam had said in a chat with CNN that the company is Indian, despite being registered in Singapore, and will list in India.
Article by Aman Agarwal.
This news piece is brought to you in association with jobaaj.com
