Is Peak XV-backed Freo the next to join the reverse flip trend?

Freo, a digital banking platform, is reportedly considering relocating its headquarters from Singapore back to India due to the country's improving financial environment. This move aligns with a growing trend among Indian internet firms seeking to return to India as local markets now offer better valuations for new economy companies. Although the process is in its early stages, Freo is also contemplating an IPO after completing the reverse flip.

Freo, which operates under Mycash Fintech in Singapore, claimed a gross revenue of over INR 350 Cr in FY 2023-24, with a positive contribution margin, marking a fivefold revenue growth over the past five years. Initially launched as MoneyTap in 2015 by Anuj Kacker, Kunal Varma, and Bala Parthasarathy, the company has since evolved into Freo, offering a wide array of financial services, including credit lines, loans, bill payments, savings accounts, and insurance. The platform now serves 25 million users across 1,200 cities and is backed by investors such as Peak XV, Prime Venture Partners, and New Enterprise Associates.

The Indian government's recent regulatory changes, including simplifying the reverse flip process by removing National Company Law Tribunal (NCLT) clearance, have made it easier for startups like Freo to return to India. Other companies like Pine Labs, Razorpay, and Flipkart are also considering similar moves, fueled by India's strong economic growth.