In 2023, NerdWallet, Inc., a US-based fintech company recognized for providing financial advice, product comparisons, and personal finance tools, expanded its operations through an acquihire transaction in India. The acquihire involved the acquisition of a skilled tech team from an Indian company to support NerdWallet’s product development and technological innovation efforts. The deal aimed to enhance NerdWallet’s engineering capabilities, particularly for its mobile application and data-driven financial products. Majmudar & Partners acted as legal advisors for this acquihire transaction, ensuring compliance with Indian labor laws, tax laws, and corporate regulations.
Facilitating the Transaction
Majmudar & Partners provided comprehensive legal guidance for NerdWallet’s Indian acquihire transaction. Our role involved:
- Labor Law Compliance: Ensured adherence to Indian labor laws, including in respect of regulations governing employee contracts, benefits, and severance pay, ensuring a smooth transition for the acquired team into NerdWallet’s operations.
- Tax Structuring: Provided counsel on Indian tax regulations, optimizing the transaction structure for tax efficiency while complying with all applicable tax laws.
- Employment Transition and Onboarding: Handled the legalities around the onboarding of employees, including drafting employment agreements and ensuring compliance with employment laws and wage standards.
- Regulatory Compliance: Advised on foreign direct investment (FDI) regulations, corporate governance regulations, and labor laws, and conducted the legal due diligence to ensure that the transaction aligned with Indian laws.
NerdWallet’s acquihire in India highlighted the company’s commitment to expanding its product development capabilities while tapping into India’s vast tech talent. Majmudar & Partners ensured that the acquihire was legally sound, managing compliance with Indian regulations, and facilitating a smooth transition for all parties involved.
With a deep expertise in cross-border M&A and Indian regulatory issues, Majmudar and Partners can guide you through the complexities of expanding your operations in India while ensuring a smooth and compliant transaction. Contact us today to learn how we can assist your company in achieving its strategic objectives through sound legal guidance.