Gurgaon based online grocer Grofers has decided to shift its headquarters to Singapore.

The Indian startup, described by the India Times as “a hyperlocal grocery delivery firm” says the corporate regime in the Lion City is friendlier than in India.

Grofers co-founder Albinder Dhindsa told the India Times: “Our main reason for a Singapore holding company is owing to listing potential in the future. Our assets are still on the books of the Indian entity, so tax equation remains same for us.”

Its move follows that of Indian eCommerce giant Flipkart which has already moved its corporate base to India; other startups have moved to the US.

Grofers is an on-demand delivery service that connects consumers with local merchants in the neighbourhood. The app-based service offers a wide assortment of goods including groceries, fresh fruits and vegetables, cosmetics, electronics, bakery items, baby care products, pet care items and flowers.

The India Times cites India’s high corporate tax rates and compliance issues as the key reasons for companies to join the exodus. The corporate tax rate in Singapore is 17 per cent, while in India it is 30 per cent, stifling reinvestment and entrepreneurship.

“India is a hot spot for startups now. But it is yet to catch up in terms of regulations and tax structures. In a tech-friendly market, which is mature enough to house them, getting relatively higher fundings and more valuation becomes easier,” a domestic investor was quoted in the online article.

Singapore also has a pool of investors willing to be on the success of eCommerce and other technology concepts.