Singapore-based Eruditus evaluating options on moving HQ to India
BENGALURU : Eruditus, founded in 2010 by Chaitanya Kalipatnapu and Ashwin Damera and headquartered in Singapore, is evaluating if it would be feasible for the executive education startup to move its base to India to capitalise on growing opportunities in the market. “It is a fact that the Indian stock markets are far more attractive than the global peers," said Damera in an interview with Mint. “Sometime in the future we will have to figure out how to give an exit to the investors.
It could be a sale, a larger PE fund buys them out, or it could be an initial public offering. In that scheme of things, we have starting the process of evaluating what a reverse flip to India looks like and if it is even feasible for us," Damera said. Reserve flip refers to an Indian company moving its headquarters from overseas to domicile in India.
Economic Times reported earlier on Monday citing sources that Eruditus was considering a shift in domicile from Singapore to India. Multiple startups incorporated overseas have been considering a move back to India to take advantage of the Indian markets, but such a decision would be accompanied by high tax implications. PhonePe’s investors ended up paying $1 billion in taxes after the company switched its domicile to India.
On Monday, Eruditus, which is operated by Singapore-based Eruditus Learning Solutions Pte Ltd, reported a 70% increase in revenue to ₹3,343 crore for FY23, even as it managed to shrink its losses by 66% to ₹1,049 crore. Currently, about 80% of Eruditus’ revenue comes from overseas markets, but its India revenue has been rising. India’s contribution to the revenue of the ed-tech unicorn will increase from 20% to 33% in the next three years, said Damera.
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