Razorpay, a Bengaluru-based digital payments company, has announced that it is relocating its parent entity back to India from the United States. The move is driven by stricter regulations in the fintech sector, which have made it difficult for Indian companies to operate abroad.
The announcement comes on the heels of a similar decision by PhonePe, another Indian fintech company, which recently moved its holding company from Singapore to India. The move by both companies is seen as a vote of confidence in the Indian government’s efforts to build a more favorable regulatory environment for the fintech industry.
Razorpay, which was founded in 2014, initially established its presence in the US to facilitate fundraising as a Y Combinator-backed startup. The move back to India reflects the company’s renewed focus on the domestic market, which has seen rapid growth in recent years.
The company has emerged as a leader in the Indian digital payments space, offering a range of payment solutions to businesses of all sizes. Razorpay’s suite of products includes payment gateway services, subscription billing, and bank transfers, among others.
In a statement, Razorpay co-founders Shashank Kumar and Harshil Mathur said that the company was excited to return to India and continue to build its business in the country. “India is a rapidly growing market, and we see tremendous potential for digital payments here. We are committed to working with the Indian government and regulators to create a more favorable environment for the fintech industry,” they said.
The move by Razorpay and PhonePe underscores the importance of regulatory clarity for the fintech industry, which has been growing rapidly in India. The government has made several moves in recent years to promote digital payments and support startups, including the launch of the Digital India campaign and the creation of the BharatQR code.
Overall, the relocation of Razorpay’s parent entity back to India is a positive development for the Indian fintech industry. As more companies return to India, the government’s efforts to create a favorable regulatory environment are likely to gain momentum, further fueling the growth of the sector.
