Latest news with #GiftCity
Time of India
09-07-2025
- Business
- Time of India
NRI-focussed fintech startup Belong raises $5 million in round led by Elevation Capital
Relentless Ventures and angel investors, including Urban Company cofounders Abhiraj Singh Bahl and Varun Khaitan, Zomato CFO Akshant Goyal, Mamaearth cofounder Varun Alagh, PayU senior vice president Vineet Sethi, and Aditya Sharma, partner at McKinsey, participated in the round. The fresh money will be used to acquire regulatory licences, build the product suite, and invest in marketing and geographic expansion. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Fintech startup Belong , which is building a financial platform for non-resident Indians (NRIs), has raised $5 million in a funding round led by Elevation Capital as it launches operations focussed on retail investment products through Gift City The round also saw participation from Relentless Ventures and angel investors, including Abhiraj Singh Bahl and Varun Khaitan (cofounders of Urban Company), Akshant Goyal (CFO, Zomato ), Varun Alagh (cofounder of Mamaearth ), Vineet Sethi (senior vice president at PayU), and Aditya Sharma (partner, McKinsey).Belong plans to use the capital to acquire regulatory licences, build out its product suite, and invest in marketing and geographic expansion, cofounder and CEO Ankur Choudhary told in 2024, Belong has launched its operations with a USD fixed deposit product built in partnership with Indian banks operating at Gift City. It aims to address the longstanding pain points that NRIs face when trying to save and invest in India, which include complex KYC processes, high currency conversion costs, taxation complications, and cumbersome repatriation procedures.'For resident Indians, everything has become digital, and there are so many financial products. For NRIs, it's quite different, even though, from the ticket size perspective, they are the cream of the crop. So, we saw a very big gap in the market,' Choudhary told USD fixed deposit product offers tax-free returns in India, rupee depreciation protection, simplified repatriation, and doorstep company has secured a Payment Services Provider (PSP) licence and a broker-dealer licence from the International Financial Services Centres Authority (IFSCA) and plans to roll out additional offerings, including mutual funds, Indian and US equities, insurance, and financial cards, structured entirely under Gift City's from fixed deposits, the startup has rolled out digital tools such as an NRI FD rates explorer, a GIFT Nifty tracker, a rupee vs dollar monitor, and a residential status calculator. It also plans to offer India tax filing services without the premium pricing typically charged to company noted that while remittances to India have grown from $82 billion in 2019 to $129 billion in 2024, NRIs' share in mutual fund assets under management (AUM) has declined from 2.9% to 2.3%, pointing to a gap in financial products tailored for this Belong aims to expand into other key NRI markets, including the GCC, the UK, and the US.'NRIs have long been underserved when it comes to modern, digital-first financial solutions tailored to their unique needs," said Vaas Bhaskar, partner, Elevation Capital. "Belong is uniquely positioned to serve this massive, underserved market by combining deep fintech expertise with Gift City's regulatory framework.'Last month, Y Combinator-backed cross-border payments startup Aspora, which provides remittance services for immigrant diaspora, raised $53 million in a funding round led by Sequoia Capital and Greylock Partners, with participation from London-based venture fund Quantum Light. Across three equity rounds between September 2024 and May 2025, Aspora has raised a total of $93 million, valuing the company at $500 million.
Time of India
25-06-2025
- Business
- Time of India
IFSCA unveils framework for ESG-linked transition bonds at GIFT City
The International Financial Services Centres Authority has issued a framework that will enable companies that face difficulty in reducing carbon emissions to raise funds at Gift City through Environment, Social and Governance (ESG)-linked bonds. The unified regulator issued Tuesday a framework for issuance and listing of the so-called transitions bonds. 'The said framework will enable the issuers, specifically from hard-to-abate sectors , to raise capital and list their securities at GIFT IFSC, while committing to a credible transition plan and making enhanced disclosures to ensure the interests of the investors are protected,' it said. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Villa For Sale in Dubai Might Surprise You Villas in Dubai | Search ads Learn More Undo Industries such as steel, cement, aviation are classified as hard-to-abate. Companies from these sectors particularly find it difficult to reduce carbon emission because of their heavy reliance on fossil fuels and processes that make decarbonization difficult. Play Video Pause Skip Backward Skip Forward Unmute Current Time 0:00 / Duration 0:00 Loaded : 0% 0:00 Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 1x Playback Rate Chapters Chapters Descriptions descriptions off , selected Captions captions settings , opens captions settings dialog captions off , selected Audio Track default , selected Picture-in-Picture Fullscreen This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Opacity Opaque Semi-Transparent Text Background Color Black White Red Green Blue Yellow Magenta Cyan Opacity Opaque Semi-Transparent Transparent Caption Area Background Color Black White Red Green Blue Yellow Magenta Cyan Opacity Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Drop shadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Bonds Corner Powered By Browse all Bonds News with ISFCA noted that ESG-labelled debt securities have played a key role in mobilizing climate finance . But it is generally seen that their application is often limited to sectors/projects that are at near/net zero. 'Transition finance provides a structured pathway for hard-to-abate industries to reduce their emissions progressively,' it said. The framework has four important pillars. These are a credible transition plan at the entity level, alignment with globally recognized taxonomies and technology roadmaps, mechanism for independent external review, and disclosure requirements. Live Events Last week, infrastructure conglomerate Larsen & Toubro raised ESG-compliant bonds amounting to Rs500 crore for a term of three years. This is the first such bond issue under the Securities and Exchange of India's (Sebi) newly issued framework on ESG and sustainability-linked bonds .
Mint
04-06-2025
- Business
- Mint
New funds surge in GIFT City, but old money stays offshore
Moneybags from Mauritius, Singapore and Cayman Islands are yet to make the move to Gujarat's GIFT City given burdensome tax and compliance rules without commensurate benefits, industry executives said. While GIFT City has seen a steady rise in new funds, it has struggled to lure funds out of established offshore centres. As of March, India's financial centre had 229 funds, as per IFSCA quarterly bulletin. However, according to an official aware of the matter, a mere 13 of them, including Alchemy India Long Term Fund, Mirae Asset India Midcap Equity Fund and Artha Global Opportunities Fund have actually migrated from foreign jurisdictions. Among the reasons: Mandatory physical presence of employees, stiff compliance rules, and no added advantage for older close-ended funds making the shift. Local staff Every non-retail fund management entity in GIFT IFSC is required to have at least two individuals physically present—specifically, a principal officer and a compliance officer for managing Category I, II, and III alternative investment funds. (Retail funds must have at least three) Also, if the entity manages assets of $1 billion or more, it should appoint a third person. This is not the case in offshore financial centres, said Vinod Joseph, a partner at Economic Laws Practice. Mauritius allows funds to be set up in the form of companies and the directors of such companies are provided by local administrators, Joseph said. 'Such directors may also serve as directors for other companies, meeting regulatory requirements without needing a dedicated local team." Also read | Low-ticket Gift City funds are almost here. But what holds them back? Singapore does require full-time employees for fund management firms, but it is relatively easier to hire such personnel in Singapore and the people need to be employed locally only if assets exceed a certain size, Joseph added. 'In the case of an existing fund, the actual fund management team is often based outside India. Expecting them to relocate to GIFT IFSC solely to meet substance requirements is not easy," he added. Tax 'For certain sets of funds (Cat-I /II AIF), the fund will withhold tax and the same is available as credit in the hands of the investor, as GIFT funds are tax-transparent. This may not be the case for a Cat-III AIF and credit to the investors will be subject to their local laws," said Vivek Mimani, Partner at Khaitan & Co. 'In contrast, jurisdictions like Mauritius do not require investors to register for tax in India, as the fund itself pays tax and further distributions are tax-free," he said. An executive at a fund which recently relocated to GIFT IFSC said that even as the Indian jurisdiction is evolving and trying to align with international jurisdictions, layers of complexity remain. Artha Global Opportunities Fund, a Mauritius-headquartered and Sebi-registered fund investing in distressed assets and special situations in India said in December that it was the first foreign portfolio investor to move its domicile from Mauritius to GIFT City. Read this | Gift City sovereign green bonds face currency hurdle 'Once a fund relocates to GIFT City, it becomes subject to various domestic compliance obligations—GST registration, TDS, income tax filings, and more," said Sachin Sawrikar, managing partner, Artha Bharat Investment Managers IFSC LLP. 'For a fund which neither provides services nor sells products and typically earns passive income, the requirement to file monthly GST returns is particularly misaligned and burdensome," Sawrikar said. Sawrikar added that payments to foreign vendors, which would typically be tax-free elsewhere, attract withholding tax at GIFT City under India's Double Taxation Avoidance Agreement (DTAA) provisions. 'These additional taxes and compliance costs increase operational burden," Sawrikar added. Relocation is not for everyone For close-ended funds with a limited remaining duration—say, a 10-year fund in Mauritius that has already completed five–seven years—relocating to GIFT City often does not make financial sense. That is because the costs and efforts involved may outweigh the benefits, a person aware of the matter said. 'Relocation is also a time-consuming process that requires approvals from investors in the fund, regulators in the home jurisdiction, and the authorities at GIFT. As a result, many fund managers prefer to let existing funds run their course in their current jurisdiction and instead consider setting up new funds in GIFT City," the person said on the condition of anonymity. Also read | GIFT City isn't just for NRIs and foreigner investors—it has something for everyone Usually, one would not rock the boat if it is sailing right; only a few are willing to take that step, said Ketaki Mehta, a partner at Cyril Amarchand Mangaldas. She added that relocation requires setting up in GIFT IFSC, hiring an investment manager in GIFT City, building a team, and winding up elsewhere. What's ahead? Experts said the government has relaxed certain regulations to lure more funds to the GIFT City. 'Initially, all investors in a fund when the fund was relocating to GIFT IFSC were required to obtain a PAN. However, not every investor was comfortable with it, and recognizing that many of these investors had no other taxable income in India and were tax residents in other jurisdictions, the government relaxed the rule," said Ketaki. Now, non-resident investors who invest solely through IFSC funds and do not earn any other income in India are exempt from obtaining a PAN. 'This change, implemented in 2020, was aimed at streamlining processes and making it easier for foreign investors to participate in IFSC without facing redundant compliance obligations," she added. And read | Mauritius keen to set up shop in GIFT City
New Indian Express
22-04-2025
- Business
- New Indian Express
Kerala will go ahead with ‘Global City' project despite Centre's withdrawal, says Minister Rajeeve
KOCHI: Industries Minister P Rajeeve has said that the state government will go ahead with the Global City Project in Ayyampuzha, part of the Kochi-Bengaluru industrial corridor, despite the Centre's withdrawal from the project. He was speaking during a meeting of the land owners held at Ayyampuzha on Monday. Earlier, the minister visited the proposed project site at Ayyampuzha near Angamaly. 'A committee, including the district collector, MLA, and grama panchayat president, will be formed to coordinate the future activities of the project,' the minister said. The Centre's withdrawal has resulted in the state incurring an additional burden tuning to crores, giving rise to concerns regarding the project's feasibility. When the 'Kochi Gift City' project was first conceived as part of the industrial corridor, it was agreed that the Union and state governments would equally share the project cost. Later, the project's name was changed to 'Global City' when the state was informed that the 'Gift City' is being mooted exclusively for Gujarat. Despite this, the Union government informed that the project cannot be allotted as part of the Kochi-Bengaluru industrial corridor. This resulted in a scenario where the state has to implement the ambitious project all alone. The initial plan was to set aside Rs 500 crore to acquire 500 acres of land for the project. However, following the Centre's withdrawal, the total land being acquired has been limited to 358 acres. 'A sum of Rs 849 crore has been handed over to KIIFB. Out of the total 358 acres, only 215 acre-land will be available for handing over to entrepreneurs. The same will result in a substantial push in the price of land to be handed over. The state is examining various ways to turn the project into a feasible one,' Rajeeve added. Pollution-free, modern industries will be established on Travancore Rayons land: Minister KOCHI: With the establishment of industries, including an electronics park on the Travancore Rayons land, not only Perumbavoor but the very face of Kerala is set to transform, Industries Minister P Rajeeve said on Monday. He was visiting the project site, which has been taken over by KINFRA. The minister emphasised that only environmentally sustainable and modern industries will be set up in the area. The industrial development will take place in two phases. Out of the total 68 acres, 30 acres have already been handed over to KINFRA. Technical procedures, including tendering, have been completed. Construction work will commence once final government approval is phase I, industries such as consumer electronics, artificial intelligence, robotics, ayurvedic products, food processing units, and e-commerce warehouses are planned. An estimated cost of around Rs 22 crore is II will begin once the remaining land is made available. This phase will include research centres, incubation centres for startups, plug-and-play facilities for rapid industrial deployment, and sectors like nanotechnology, consumer electronics, AI, robotics, and food processing.
