Financial technology company PhonePe said on Wednesday that it had to pay tax of Rs 8,000 crore to make India its base again. The company said that it is estimated that it may have an accumulated loss of Rs 7,300 crore, although it will be offset by future profits.
The company, which has a valuation of more than $ 10 billion, said that local laws related to establishing domicile of businesses are not progressive. Sameer Nigam, co-founder and chief executive officer (CEO) of PhonePe, said during an online session that due to the existing law related to the domicile of the company, the employees lost all the incentives under the ‘Employee Stock Ownership Plan (ESOP)’. Had to wash.
Company’s co-founder and chief technical officer Rahul Chari was also present in the program. Nigam said, “If you want to make India your domicile, you will have to do a fresh market valuation and pay taxes. Our investors had to pay around Rs 8,000 crore to get permission to return to India. If a business is not fully mature then it is a big blow for it.
He said that PhonePe was able to withstand this setback because it has long-term investors like Walmart and Tencent. PhonePe came back to India in October 2022.