Razorpay's Taxing Flip, New-Age Tech Stocks Fumble & More

Razorpay Flips Back, But At What Cost?

Razorpay’s move to redomicile to India ahead of its planned IPO is not going to be cheap. The fintech unicorn is likely to pay nearly $150 Mn (around INR 1,245 Cr) in taxes to Indian authorities and another $250 Mn-$300 Mn to the US government, pushing the total tax liability north of $400 Mn-$450 Mn.

In a bid to reduce this outgo, Razorpay has consolidated six Indian subsidiaries under a single local holding company. While it hopes to bring down the total tax payout to US authorities to around $200 Mn (INR 1,663 Cr), the combined cost of the flip could still hover around $350 Mn (around INR 2,994 Cr).

The Great Indian IPO Dream: The reverse flip is essential for Razorpay’s IPO, expected in FY27. As part of the process, the company became a and with its Indian subsidiary to streamline its structure.

Hints Of A Tough Fiscal Year? In FY24, (up 365% YoY) and revenue of INR 2,475 Cr (up 9% YoY). But a tax payout of nearly INR 3,000 Cr is going to impact its profitability and erode cash reserves.

What Determines The Tax Slap: The amount of tax liable for shifting a domicile from one country to another is determined by the company’s valuation. Notably, Razorpay was valued at $7.5 Bn (INR 64,172 Cr) when it last raised funding of $375 Mn (INR 3,208 Cr) in 2021.

However, Razorpay isn’t alone under the tax gavel. PhonePe reportedly paid nearly INR 8,000 Cr in taxes for its reverse flip, while Groww has paid INR 1,340 Cr.

Now, with all eyes on Razorpay’s market debut, it would be interesting to observe how the fintech balances .

From The Editor’s Desk

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Inc42 Startup Spotlight Can UnderNeat Take On H&M & Zivame In India’s Shapewear Market?

Dismayed by the lack of affordable yet stylish shapewear options, particularly for younger consumers, in the Indian market, influencer Kusha Kapila partnered with Vimarsh Razdan to launch UnderNeat in 2025.

Inspired By Global Peers: Drawing inspiration from the global success of Kim Kardashian’s shapewear brand SKIMS, the D2C brand offers a range of products, including bodysuits, shorts and other accessories like body tapes to nurture confidence in their customers.

The brand’s distribution strategy revolves around leveraging Kapila’s significant online presence and personal brand to drive sales. By pricing its products 30-40% lower than SKIMS, UnderNeat aims to capture a significant share of the emerging shapewear category in India.

As India’s shapewear market races towards $131.2 Mn by 2028,

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