NovoJuris
Externalization: Flipping the holding company
outside of India
\ehave seen tsdy increase the umber o companies, especially tech and tech enabled companies set up
theirenies outside of Indi, Hore often than no, the easons are better valtions, bility ora age
investments, ge cistomer bse etc, We are ato seinga few companies c,cannatallit renntemaiing
and flipping thei holding comgany int nda, Strangely forthe some easons. Heres an excusve interview wth
Shailesh Ghorpade, Managing Parner and ClO at Exit Venture Partners Edit provides imavation capital
and with established connects and ecosystem ares nla and US, Exit focuses on ploncerngstart.ups tha
areready to seal cross the global tage, Ras neat an hourlong cand scusion on all ting aru,
_scalig-p, crass bocce, king, Issues typical faced by founders whe expanding. The ld thinking ding
the conversation was delightful tones,
shard: ing and thanks Shailesh for taking the time to talk tous on your experiences of working
‘with early-stage founders and ther journey of expanding beyond India. You have seen BTB businesses very
‘closely and thave heard you say before that many these entities shouldbe outside of nda. Why and what
are those factors thata founder should think through before structuring themselves up ouside ind,
Shatles: nnd, wehaveghen mor tention to BTC where the markets, consumer cllersareinindi
However, you would have ncticed than many case, these companies ae not domcledin iia, There are many
investors uholke the “ndiastory” butthereis some amet on nia domiciled companies. The comfort would be
tohave astabletaxregine, stable regulatory elma, cetalay of tepaatngtne proceeds dung anit are
samectthos, There ea perception that ti cificalto do businass in nda because of the unpredictableregulatory stivcture and sine business models are evolving faster than regulations Investors are cagey of onerous
regulations being promulgated and we do havea reputation forbeing an over regulated economy ether we tke
itor not, That sone part oft. Take the other part ofthe 878 businesses themselves Enterprise businesses dont
_stasmuch attention as they should though they are wording on citing ede I cling areal protie, capital
‘ficient, Ther are ndan large corporates who need these products Unlike aBTC,itsat “a winner takes ital
spprose BTC willneed high capitalintusion tits the distrbuton gamathat we see nda beng attractive fo
However, Business frit hard to sll and make money inthe indian market. ndlan enters don't value
‘orsoftare product as much s they should and they dru-down the ices drat. Ris not about how 3 oF