10th Sept 2024 Bengaluru, Karnataka, India The Indian Venture & Alternate Capital Association (IVCA), the apex industry body for the alternate capital ecosystem in India, successfully hosted the Bharat Vapsi: Navigating Regulatory and Investment Landscapes conference in Bengaluru. The conference, supported by Cyril Amarchand Mangaldas, Ernst & Young, and Goodwin, brought together key stakeholders to discuss the trend of reverse flipping and the potential impacts of returning entrepreneurs on India’s innovation ecosystem and economic growth.
According to industry estimates, non-Indian domicile unicorn startups and scaleups account for more than 50%. Rajat Tandon, President of IVCA, remarked, “The Bharat Vapsi trend marks the return of Indian startups to their homeland, driven by recent policy changes like the removal of Angel Tax and adjustments to Long-Term Capital Gains. These reforms offer investors greater flexibility, reinforcing India’s appeal as a global startup and fund management hub. This reinforces confidence in India’s economic potential, which is expanding at twice the rate of many emerging economies, positioning India as a premier global startup and investment destination.”
The conference featured insightful discussions on the challenges of operating startups abroad compared to the benefits of returning to India, where simplified regulations and cost efficiencies prevail. Speakers also highlighted the pivotal role of domestic capital in shaping the future of Indian startups, the impact of government policies in making India an attractive destination for startups, and strategies to unlock new sources of funding such as pension and insurance funds.
Harish S., Partner, Cyril Amarchand Mangaldas, commented on the significance of this trend, stating, “The return of businesses to India is an important indicator of the maturity of the eco-system, opportunities for growth, and most importantly access to capital through a vibrant capital market. As these businesses return, they bring with them valuable expertise and global perspectives that will further energize India’s evolution as a global economic powerhouse.”
KT Chandy, Partner & Co-Leader, EY Private Tax, EY India, added, “The recent surge in startups choosing to redomicile to India marks a transformative shift in the global entrepreneurial and fundraising landscape, signalling the country’s vast potential as a hub for innovation and business growth. This trend reflects the growing confidence of entrepreneurs in India’s economic policies and digital infrastructure and will usher in a new era of disruption.”
Abhishek Krishnan, Partner, Goodwin, noted, “The trend to redomicile back to India is testament to India’s vibrant domestic capital markets. These are exciting times for mature businesses that have previously pooled their capital raises outside India to set themselves up for a listing in India.”
The conference featured prominent speakers including Smt. Dr. Ekroop Caur, IAS, Government of Karnataka; Anjali Bansal, Founding Partner of Avaana Climate and Sustainability; and Karthik Prabhakar, Managing Partner, PeerCapital. The discussions were enriched by industry leaders such as Harish S., Partner, Cyril Amarchand Mangaldas; Manish Kheterpal, Co-founder & Partner, WaterBridge Ventures; Smita Goel, Director Finance, RTP Global; and Vishal Gupta, CEO, PhonePe Insurance, among others.
IVCA’s Bharat Vapsi served as a crucial platform for professionals operating in the Indian alternate capital ecosystem to connect, share insights, and drive forward the momentum of reverse flipping, emphasizing the immense opportunities in India’s evolving investment landscape.