12 september 2024 : Zerodha co-founder Nithin Kamath has lauded the trend of Indian companies returning to the country after initially setting up abroad. In a recent post on X (formerly Twitter), Kamath highlighted the shift by noting, “Three years ago, I pointed out the issue of Indian firms building for India but incorporating elsewhere. Now, the situation has reversed. How the tables turn!”
Kamath’s remarks come as the number of Indian firms with market capitalizations over $1 billion hits a record high. He attributed this change to the bullish market and the new opportunities for public listings in India, calling it a ‘ghar-wapsi’ or homecoming of these firms. He also mentioned that the Ministry of Corporate Affairs has recently facilitated this ‘reverse flipping’ or repatriation process.
Additionally, Kamath referenced a report by former European Central Bank President Mario Draghi, which found that nearly 30% of European unicorns founded between 2008 and 2021 moved their headquarters abroad, mainly to the US. He noted a similar reverse trend in India as companies increasingly recognize the potential of the local market.
