Daybreak Paying the price of going global — Meesho, Razorpay, and the reverse flip
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Jun 19, 2025 Indian startups are reevaluating their paths, with success stories like Meesho and Razorpay opting to return home for greater opportunities. As they navigate hefty tax bills to bring their businesses back to India, questions arise about the lasting value of Y Combinator's golden ticket. The podcast dives into how Y Combinator changed the landscape for Indian entrepreneurs while highlighting emerging funding alternatives. With the allure of Silicon Valley fading, the journey home may prove to be the new frontier for innovation.
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Y Combinator's Startup Impact
- Y Combinator changed India's startup scene by funding young, less polished entrepreneurs and supporting overlooked sectors.
- The program provides $500K seed funding, mentors, and helps raise more money, making it very appealing to early-stage startups.
Meesho's Reverse Flip Example
- Meesho, a once proudly YC-backed Indian startup, chose to pay nearly $300 million in taxes to move operations back to India.
- This move signals a growing trend where Indian startups are adopting 'reverse flips' to capitalize on local opportunities.
Shift from US to Indian Markets
- Indian startups once saw shifting headquarters to the US as essential for investment and growth.
- Changing Indian public markets and costly tax implications now make returning to India more attractive despite initial US benefits.