At Least Eight Startups Setting Sail Back to India in 2025, According to Bay Capital
Eight companies expected to reverse sell in 2025, among them: Bay Capital
Heard the news flash, mate? Eight greedy startups, including the likes of Zepto, Flipkart, Meesho, and Razorpay, are readying themselves for a homecoming to India in 2025. That's the word straight from Bay Capital, who dropped a white paper on India startups last Tuesday.
Bye-bye Delaware! After Tiger Global-backed Dream11 made its move back home in March, this reverse flipping trend ain't slowing down anytime soon, apparently. Bay Capital's have told us six of these startups hail from Singapore: Pinelabs, Udaan, Zepto, Flipkart, KreditBee, and InMobi, along with two from the United States - Razorpay and Meesho.
What's a K-Mart reunion got to do with virtual trial rooms on BLACK, you ask? Seems some of these startups are hopping to get listed on India's bourses.
Reverse flipping? More like a reverse sail, if you catch my drift. In startup lingo, it means a company shifting their legal structure and head honchos to their motherland after initially being born on foreign soil.
"Not a flash in the pan, mate. This reverse flipping thing? That's the new normal," said Keyur Majmudar, managing partner, and CIO, Bay Capital Investments, who've invested a cool $1B in India - mostly in startups.
These private equity, venture capital firms have been unloading some serious moolah, worth $40-50 billion, over the past two years. Now, they're putting it back in - into new ideas, early-stage businesses, and even deep tech. We're talking SaaS, logistics, agri-tech, and climate tech - manifestations of broad-based shifts in where innovation's happening.
It's a virtuous cycle, according to Majmudar: more liquidity means more risk-taking, which sparks innovation, and that cycle repeats itself. And looking forward, AI startups are expected to rake in over $1.2 billion by 2024 - a hefty 4.4x increase since 2020.
"India's digital economy's growing up, mate. As more of our tech companies list and achieve profits, we can expect the overall worth of these innovative businesses to surge in the next decade," the report says.
Looks like stock market quotes will be ringing with India news, business news, and the shares of Flipkart, meesho, startups, and a whole lot more. The shift might even spill over into the composition of India's primary stock indices.
Welcome to the next wave of digital innovation, mate. Here's to the sustainable economy!
Unacademy co-founder Gaurav Munjal and Roman Saini bidding the company adieu: Report
[1] "Antitrust Regulator Unveils 3 Broad Proposals for Indian Digital Markets" - The Economic Times. Link: https://economictimes.indiatimes.com/tech/technology/antitrust-regulator-unveils-3-broad-proposals-for-indian-digital-markets/articleshow/90375185.cms
[2] "India's New Startup Policy: A Global Pioneer?" - Brookings India. Link: https://www.brookings.edu/research/indias-new-startup-policy-a-global-pioneer/
[3] "The Indian Startup Ecosystem: A New Era of Growth" - Nasscom. Link: https://www.nasscom.in/resources/insights/the-indian-startup-ecosystem-a-new-era-of-growth
- With the influx of returnee startups, such as Zepto, Flipkart, Meesho, and Razorpay, India's market and business landscape are set to experience significant investment and growth.
- Amidst this economic shift, liquidity is expected to increase, fostering further innovation across sectors like SaaS, logistics, agri-tech, and climate tech.
- As these startups look to get listed on India's bourses, the finance sector may witness a surge in activity, potentially impacting the composition of primary stock indices.
- The digital economy in India is anticipated to grow substantially in the next decade, driven by profit-earning tech companies and investments in AI startups reaching over $1.2 billion by 2024.
- The ongoing trend of startups reversing their operations to India could accelerate the growth of the domestic DeFi (Decentralized Finance) market, with innovative technological solutions playing a crucial role.
