Swedish Truecaller hit by Indian tax raid, stock falls
After an unexpected tax raid in India, Sweden’s Truecaller’s stock tumbled on Thursday signaling potential challenges for foreign tech firms navigating regulatory hurdles in the country.
Swedish tech firm Truecaller saw its shares fall by 11% on Thursday after Indian tax authorities conducted a surprise raid on its local offices. The company, which specialises in caller identification software, confirmed the raid in a statement and emphasised its commitment to cooperating fully with authorities. Truecaller noted that it had no prior notice of the action and had not faced any tax investigations in India beyond regular audits.
Following the news, Truecaller’s stock dropped significantly on the Stockholm exchange, down 9.3% by midday. This sudden raid adds a layer of uncertainty for the company in one of its key markets, as Truecaller has a substantial user base in India, where it recently appointed Rishit Jhunjhunwala as its new CEO. Truecaller reassured investors that such tax probes are common and that it remains committed to transparent business practices. However, the news has unsettled shareholders, highlighting the potential regulatory challenges foreign tech firms face in India’s growing but complex market.
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