Groww, an Indian investment app, has become one of the first startups from the country to shift its domicile back to India from the U.S., signaling a broader trend among the local startup community.

The Bengaluru-headquartered startup, which allows consumers to buy shares and mutual funds, made the transition in March, its co-founder and chief executive, Lalit Keshre, wrote in a post on X. 

A growing number of Indian startups, particularly in the fintech sector, are preparing to relocate their overseas holding entities to India in a bid to align with evolving local regulations, and to pursue domestic stock listings.

Many Indian startups, particularly those backed by Y Combinator, initially incorporated in the U.S. to gain better access to investors and capital in North America.

Eight-year-old Groww, which counts YC, Peak XV Partners and Tiger Global among its backers, has been profitable for several years. Its eponymous app is the most popular stock broking offering in the country, according to official data.

Razorpay, Pine Labs, Zepto, Meesho and Udaan are among the other Indian startups in various stages of deliberations to move base to India. 

Bengaluru-based PhonePe moved its domicile to India in 2022 from Singapore. The Walmart-backed firm’s move created a tax implication of nearly $1 billion to the startup’s investors, and Walmart paid most of the tax. 

Groww is still computing its tax implications, according to a person familiar with the matter.