Eye on IPO shores, companies set sail for Cayman

The Cayman Islands could emerge as the new pitstop for Indian startups building software products for global markets that are in search of flexibility to tap into capital markets either at home or overseas. The Caribbean Island, a self-governing British Overseas Territory, is seen as “a region of interest” for these software-as-a-service, or Saas, companies as they look to put their global ambitions on the fast track, according to multiple people in the know of developments.

The push to register these Saas startups in the tax-neutral territory is also being led by their venture backers, according to the people cited above who said that Accel Partners is among those to have asked early-stage Saas startups in its portfolio to register on the Cayman Islands. Accel, a prominent investor in Saas major Freshworks, did not respond to ET’s queries on the developments.

“Cayman Islands has emerged as a region of interest in the past year for Indian startups that are building global software products who want to have the flexibility of listing in India, US or a dual listing,” said Ashitha Bhagwan, managing partner at Inventus Law Technology Partners.