The trend of reverse flips, where Indian startups initially headquartered overseas are moving their fundraising platforms back to India, is gaining momentum.
Our Partner, Vishruta Kaul, talks about the factors that have contributed to this trend, such as favourable Indian corporate law developments, simplified startup regulations and plethora of startup funding options. She discusses the two popular methods – cross-border mergers and share swaps – that are often used to structure reverse flips.
She also talks about the need for comprehensive due diligence and pre-assessment of the process to understand FEMA regulations, accounting and corporate law compliances. The need to assess and obtain third-party consent under various commercial contracts and financing arrangements is also discussed.
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