Razorpay to pay $150 Mn in taxes for reverse flip to India

Fintech unicorn Razorpay is expected to incur a tax liability of approximately $150 million (approximately Rs 1,280 crore) as part of its reverse flip to India, according to sources familiar with the matter. The company officially announced its move to shift its domicile from the US to India on Thursday.

The amount of tax payable is typically determined by the company’s valuation and the findings from third-party audits. Razorpay was valued at $7.5 billion when it raised $375 million in December 2021.

Moneycontrol, which reported the development first, said that Razorpay will make this tax payment using internal cash reserves.

So far, PhonePe, Dream11, Groww, and Zepto have completed their domicile shift to India. While Zepto and Dream11 did not disclose the amount of tax paid for the reverse flip, PhonePe and Groww paid Rs 8,000 crore ($1 billion then) and Rs 1,340 crore ($157 million) in taxes, respectively, to complete the process.

Razorpay has no immediate plans to go public, however, it has completed regulatory requirements such as transition into a public limited company and approval for the amalgamation of Razorpay Inc. with Razorpay India.

Razorpay is among the few profitable unicorns in the fintech sector. In FY24, the company reported revenue of Rs 2,068 crore and a profit of Rs 35 crore. Its FY25 results are yet to be announced.