Merchant commerce and payments platform PineLabs has received approval from the Singapore court to link its local entity, Pine Labs Limited, with the Indian unit, Pine Labs Private Limited, as per a report by TechCrunch.
All of the company's properties and assets will be transferred as a result of the change, enabling the business to move its operations to India. Following the deal, all of the shareholders of Pine Labs Limited (the Singaporean entity) will become shareholders of Pine Labs Private Limited. Further, Pine Labs Private Limited will pursue any ongoing legal action against Pine Labs Limited.
Read: Pine Labs, Zepto, Meesho Consider "Reverse Flip" To Return To India: Report
The filing further specifies that the Singapore entity will be dissolved without going through winding up in accordance with the National Company Law Tribunal (NCLT) ruling filed with the Registrar of Companies, as reported by Entrackr.
In a court filing, as per Tech Crunch, the start-up said that the shift of domicile will help “achieve business synergies and more economies of scale.” The firm also said that this domicile shift will help “achieve cost savings” and “simplification of the shareholding structure.”
In addition to gifting and credit, the merchant commerce and payments platform provides e-commerce and retail merchants with online and offline gateway (point of sales terminal) services. It has a valuation of more than $5 billion and is supported by Peak XV, Fidelity, Invesco, Temasek, PayPal, and Alpha Wave.
It is one of the many Indian start-ups that recently moved their domicile back to India. PhonePe and Groww, two fintech businesses, have already moved their foreign holding companies to India. Similarly, Meesho, Zepto, Razorpay, and Udaan are also assessing comparable actions. Recently, e-commerce platform Flipkart was also in the news for being in talks to shift its domicile back to India from Singapore, as reported by the Economic Times. A robust start-up ecosystem and better valuation are some of the reasons that are making start-ups shift to India.
