Announcing their "Ghar waapsi", ๐ฟ๐ง๐๐๐ข 11 has joined the list of top Indian startups who have shifted their Domicile back to home country, referred to as "๐๐๐ซ๐๐ง๐จ๐ ๐๐ก๐๐ฅ๐ฅ๐๐ฃ๐".
Dream Sports, the Parent Company of Dream 11 has merged with Mumbai based arm Sporta Technologies. Various startups such as Zepto, Phonepe, Groww have undertaken the process of Reverse Flipping.
1) ๐๐ฎ๐๐ ๐ง๐ฟ๐ฎ๐ฐ๐ธ ๐ฅ๐ฒ๐๐ฒ๐ฟ๐๐ฒ ๐ ๐ฒ๐ฟ๐ด๐ฒ๐ฟ ๐ฏ๐ ๐๐ฟ๐ฒ๐ฎ๐บ ๐ฆ๐ฝ๐ผ๐ฟ๐๐
โก๏ธ Dream 11 is the ๐ญ๐๐ ๐๐ป๐ฑ๐ถ๐ฎ๐ป ๐ฆ๐๐ฎ๐ฟ๐๐๐ฝ to take the route of Fast Track Reverse Merger.
โก๏ธ Through the Companies Amendment Rules, 2024, Government allowed Fast Track Cross Border Merger under Section 233 for certain Specific Companies.
โก๏ธ No need to seek the approval of NCLT.
โก๏ธ Companies can now just seek the approval of the regional director of the MCA and RBI.
2) ๐ฅ๐ฎ๐๐ถ๐ผ๐ป๐ฎ๐น๐ฒ ๐๐ถ๐๐ฒ๐ป ๐ฏ๐ ๐๐ฟ๐ฒ๐ฎ๐บ ๐ญ๐ญ ๐ณ๐ผ๐ฟ ๐๐ต๐ถ๐ ๐บ๐ผ๐๐ฒ
โก๏ธ Reduction in compliances and regulatory overheads.
โก๏ธ Consolidation of the group and elimination of intercompany transactions.
โก๏ธ Streamlined holding structure by avoiding duplication between India and Delaware.
3) ๐ช๐ต๐ ๐ฎ๐ฟ๐ฒ ๐ฆ๐๐ฎ๐ฟ๐๐๐ฝ๐ ๐ฅ๐ฒ๐๐ฒ๐ฟ๐๐ฒ ๐๐น๐ถ๐ฝ๐ฝ๐ถ๐ป๐ด?ย
โก๏ธ Growing stock market and more competitive valuations offered by Market.
โก๏ธ Favourable regulatory changes and ease of doing business in India.
โก๏ธ India's growing economic strength.
โก๏ธ Investor friendly Regulatory Market.
โก๏ธ Being โIndia-headquarteredโ is now a badge of credibility.
4) ๐ฃ๐ผ๐น๐ถ๐ฐ๐ ๐ฐ๐ต๐ฎ๐ป๐ด๐ฒ๐ ๐ป๐ฒ๐ฒ๐ฑ๐ฒ๐ฑ ๐๐ผ ๐บ๐ฎ๐ธ๐ฒ ๐๐ต๐ถ๐ ๐ฝ๐ฟ๐ผ๐ฐ๐ฒ๐๐ ๐บ๐ผ๐ฟ๐ฒ ๐๐บ๐ผ๐ผ๐๐ต๐ฒ๐ฟ
โก๏ธ Reduction in amount of Capital Gains Tax which Startups pay to relocate๐
โก๏ธ Defined timeline for approvals and a single-window clearance systemโ๏ธ
โก๏ธ Easier exit norms for M&A.
โก๏ธ Dedicated dispute resolution forums for the Corporate Ecosystem.
21st century is Indiaโs century and therefore the role played by Indian startups will have an even greater impact going forward.ย