Ozonetel Moves Its HQ To Singapore; Signs Of Time To Come ? #MakeInIndia

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Ozonetel

Ozonetel

A few months back I wrote an open letter to government : Forget Make in India, Please Enable ‘Selling in India’

Of course, it’s difficult to get one’s voice heard when there is a (loud) party going on.

But then, in between the noise and gala startup parties, some of the serious startups are moving out of the country.

The latest one to join the gang is homegrown cloud telephony startup, Ozonetel which has moved its HQ to Singapore.

Reason? Fund raising is much easier. Doing business is much simpler.

we have done more than 50 crore worth of business, and since all our products are home made, thats 50 crore that did not go to entities like Avaya which are outside India. And we have always felt proud that we were able to give Indian startups and SMEs the best of the technology for the best of the price.

That said, this month we took the painful step of becoming a Singapore entity. The decision was taken after lot of thought and was necessitated by a lot of factors [source]


1. Why Singapore and why not US or stay in India?
Tax advantage to investors. Zero capital gains. Note convertibles are possible.
In India I can’t even take a loan from non-directors.
2. Why move to Singapore from India?
Raising angel money is easier.
Clients, VCs and potential M&A suitors  find it easy to do business if you are Singapore company.
3. How long does it take to move?
Depends on the stage of your company is in. It’s easier to do if you are in early stages of the venture and not have too much of revenue and not many share holders on the cap table. It takes 6 months if you are already into revenues.
4. Main reason to move
Mainly to raise money from investors.
5. What do customers prefer, US entity, India entity or Singapore entity.
Indian customer doesn’t really care unless you have started as a US entity with US customers in your kitty. Then the brand perception is different. But as an Indian entity flipping to US doesn’t change your brand value. Customers here are anyhow price conscious.