Reverse flipping startups occupy a central place in India’s innovation ecosystem

(MENAFN-NewsVoir) Bengaluru, Karnataka, India

Indian Venture & Alternate Capital Association (IVCA), the apex industry body for the alternative capital ecosystem in India, successfully organised Bharat Vapsi: Navigating Regulatory and investment Landscapes in Bengaluru. The conference, facilitated by Cyril Amarchand Mangaldas, Ernst & Young and Goodwin, brought together key stakeholders to discuss the reverse pivot trend and the potential impact of return entrepreneurs on the innovation ecosystem and economic growth in India.

IVCA Bharat Vapsi Initiative Highlights Returning Entrepreneurs and Investment Landscape

According to industry estimates, startups and scaleups that are not headquartered in India account for over 50%. Rajat Tandon, President of IVCA noted, “The Bharat Vapsi trend marks the return of Indian startups to the homeland, fueled by recent policy changes such as the abolition of angel tax and adjustments to long-term capital gains. These reforms offer greater flexibility to investors, strengthening India’s appeal as a global startup and fund management hub. It bolsters confidence in India’s economic potential, which is growing twice as fast as many emerging economies, positioning India as a leading global startup and investment destination.”

The conference included insightful discussions on the challenges of running startups abroad versus the benefits of returning to India, where simplified regulations and cost-efficiencies prevail. Speakers also highlighted the critical 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 ecosystem, growth opportunities and, most importantly, access to capital through a vibrant capital market. As these businesses return, they bring with them valuable experience and global perspectives that will further fuel India’s evolution as a global economic powerhouse.”

KT Chandy, Partner and Co-Leader, EY Private Tax, EY India He added, “The recent surge in startups choosing to relocate to India marks a transformational shift in the global entrepreneurship and fundraising landscape, signaling the country’s immense potential as a hub for innovation and business development. This trend reflects growing entrepreneurial confidence in India’s economic policies and digital infrastructure and will usher in a new era of disruption.”

Abhishek Krishnan, partner, Goodwin He noted, “The trend of returning to India is a testament to the vibrant Indian capital market. These are exciting times for mature companies that have previously pooled their capital raised outside India to prepare for a listing in India.”

The conference featured eminent speakers including Smt. Dr. Ekroop Caur, IAS, Government of Karnataka; Anjali Bansal, Founding Partner, Avaana Climate and Sustainability; and Karthik Prabhakar, Managing Partner, PeerCapital. The discussions were enriched by industry leaders like Harish S., Partner, Cyril Amarchand Mangaldas; Manish Kheterpal, Co-Founder and Partner, WaterBridge Ventures; Smita Goel, Head of Finance, RTP Global; and Vishal Gupta, CEO, PhonePe Insurance, among others.

IVCA’s Bharat Vapsi provided a key platform for professionals operating in the Indian alternative capital ecosystem to connect, share insights and drive the momentum of reverse flipping, highlighting the immense opportunities presented by India’s evolving investment landscape.

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