Why are Indian startups embracing 'reverse flip'

Opening Bell 🔔 is Tech in Asia’s free newsletter that brings you the biggest news and latest trends around Asia’s publicly listed tech companies. [Read from your browser]( Opening Bell 🔔 Welcome to the Opening Bell! Delivered every Monday via email and through the Tech in Asia website, this free newsletter breaks down the biggest stories and latest trends on Asia’s publicly listed tech companies. If you’re not a subscriber, get access by [registering here](.  ---------------------------------------------------------------  Written by Samreen Ahmad  Journalist  Hello {NAME} I don’t know if it’s the same for you, but I rely on startups for my daily needs, including groceries, medications, investments, payments, and transportation. There is hardly a day when I do not place an online order, book a ride via an app, or use a QR code for payment. I live in India, and the startup ecosystem here is booming. But my opinion may be biased since I live in Bengaluru, the startup hub of the country. However, this surge is not confined solely to India’s biggest cities. It’s now extending to Tier 2 and Tier 3 towns. Many want in on the action. Startups who had once set up their parent entities abroad to attract foreign investors are now scrambling to return to their home country. More than half a dozen Indian startups are making a beeline to return to India, even as the process entails a heavy tax burden. In this week's Big Story, I delve into this trend of reverse flipping and explore the factors driving it. -- Samreen  ---------------------------------------------------------------  THE BIG STORY [Why are Indian startups ready to pay big for 'reverse flip'?]( Driven by favorable market conditions and homeground advantage, Indian startups are returning to their native country to set up their base. ---------------------------------------------------------------  3 TRENDS TO KEEP EYE ON Hot stocks, earnings reports, restructuring, pressure from activist investors, and more. 1️⃣ All AI roads lead to Singapore?: Singapore is rapidly positioning itself as an AI hub, and it’s got the endorsement of ByteDance. The Chinese tech major has [listed]( more than 40 job openings related to generative AI, primarily located in the city-state. Singapore has already revealed a new [US$742 million]( investment into the industry, which will take place over the next five years. But OpenAI, which is backed by Microsoft (MSFT, NDAQ), [chose Japan]( as its first AI office location, so it will be interesting to see where the trajectory of this Asian AI boom is headed. 2️⃣ Revival of pay later?: Even as companies such as ShopBack and Atome have rolled back their buy now, pay later offerings, another set of players are signaling a resurgence of BNPL activities. Grab (GRAB, NDAQ) has [announced]( that it will cease support for its GrabPay Card, as it has “observed much higher adoption and use of other Grab offerings” including PayLater by Grab. Meanwhile, Indonesia’s GoTo (GOTO, IDX) is planning to [launch]( a BNPL product with TikTok soon. Why are the fortunes of different pay-later firms diverging? Perhaps, [success]( lies in integrating BNPL as an add-on service with incentives to users who are already big spenders on a large platform. 3️⃣ Thailand’s electrifying space: Vietnamese EV maker VinFast (VFS, NDAQ) has [signed]( agreements with 15 auto dealers in Thailand. VinFast founder and billionaire Pham Nhat Vuong’s bet on the country seems to be the right move, as Thailand accounts for 58% of the total number of electric vehicles sold in Southeast Asia. EV is definitely a big trend to watch out for in the region: VinFast has announced a [US$404 million]( investment in EV charging stations in Vietnam, and Singapore is pushing for [100% cleaner energy vehicles]( by 2040.  2 EYE-POPPING NUMBERS Tech in Asia scours the internet to bring you head-turning numbers from the world of business. - [US$2 billion]( The profit that IPO-bound Shein posted for 2023, which was an over 2x rise from the previous year. - [18 million]( The amount of “bad content” Meta (META, NDAQ) took down from Facebook and Instagram in India for March. THE ONE YOU DIDN'T SEE COMING We spotlight the story that had everyone talking and social media buzzing during the past week. Shot in the arm for EVs in India: The Indian government gave the [green light]( on a much awaited EV policy, which is likely to attract top global manufacturers to the country. The policy entails lower import taxes on select EVs for companies committing to investments of over US$500 million and setting up manufacturing hubs in the country within three years. This development provides a boost for Tesla (TSLA, NDAQ), which has been eyeing entry into India’s EV market. Elon Musk [met]( with Prime Minister Narendra Modi in New York last year. The Tesla founder expressed admiration and stated that he was "extremely enthusiastic about India's future." The company is scouting for a [location]( to house a US$2 billion to US$3 billion plant in the country. This could be seen as a favorable development for the government, particularly with the general elections beginning this month. ---------------------------------------------------------------  EVENTS HAPPENING You can also check out a curated list of trending tech events [over here]( and Tech in Asia’s signature events [here](. - [Saigon Summit 2024 : Charting Vietnam’s Tech Future on May 30]( Put your startup on the map at our signature trade show, Startup Showcase, and get the attention of hundreds of tech professionals. Your next investor or business partner could be among the crowd! Check out the perks you’ll receive for exhibiting and [apply now]( - [Tech in Asia Conference Kuala Lumpur 2024 : Malaysia on The Rise on July 24-25]( Embark on a groundbreaking journey of innovation at the inaugural Tech in Asia Conference in Kuala Lumpur, where cutting-edge ideas converge to ignite, connect, and elevate Malaysia’s tech landscape. Celebrate Hari Raya with our special promotion of 45% off on all ticket types.[Grab yours]( while the offer lasts! - [Product Development Conference (Jakarta, 25-26 June 2024)]( This year’s conference, themed around “scaling product innovation from startup to enterprise,” will deliver tailored insights for attendees at any stage of their business journey. This Hari Raya, celebrate togetherness with your friends and colleagues! Enjoy a special Hari Raya package: 6 General Passes or 4 Pro Passes for IDR 1,445k (USD 92). [Get tickets](  - [Tech in Asia’s Founders Meetup in Singapore on April 24]( We took the best of our 2023 Founders Meetup series and injected it into our all-new agenda this year. But don’t just take our word for it - join us at Hopscotch on April 24 to experience the excitement firsthand. P.S. We’re just getting started. We’re hosting many other Founders Meetups this year, so [stay tuned!]( That’s it for this edition - we hope you liked it! Not your cup of tea? 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