Pine Labs to Move Singapore Base to India After Court Nod

Indian fintech firm Pine Labs has been granted permission by a Singapore High Court to move its operations back home from the city-state as part of its efforts to streamline the business and cut overheads.

A regulatory filing showed that the approval enables the merger of Pine Labs Ltd. in Singapore and Pine Labs Private Ltd. in India, with the Singaporean unit relocating all assets and properties to the Indian entity.

All shareholders of the firm in the city-state will also join Pine Labs Private Ltd., which would continue any of Pine Labs Ltd.’s ongoing legal matters after the merger.

The filing said the move would reduce overhead costs in administrative and statutory compliance and help the company avoid duplication in allocating and using its resources between its home country and Singapore.

Pine Labs has declined to comment on the domicile shift.

The ‘Reverse Flipping’ Trend in Indian Startups

Pine Labs’ transition represents the growing ‘reverse flipping’ trend among Indian startups.

Meesho, Zepto, Flipkart Private Ltd., Razorpay, and Udaan are among the e-commerce and fintech firms considering relocating their overseas holdings.

Walmart Inc.-owned PhonePe has shifted domicile to India from Singapore, while brokerage app Groww has completed moving operations back to its home from the US in March.

One possible reason for the trend’s rise is the lack of analysts’ coverage for companies worth under $20 billion in developed markets, as not garnering enough attention in these places can curb demand from institutional investors.

However, it was argued that tech companies in India are often able to generate significant capital due to the strong demand.

Backed by investors such as Temasek Holdings Ltd., PayPal Holdings Inc., and Peak XV Partners, Pine Labs received a $150 million investment from US asset manager Alpha Wave Global LP in 2022, bringing its value to around $5 billion.

In the same year, the fintech firm entered a $45 million deal to acquire Fave, an e-commerce platform based in Kuala Lumpur.

 

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