Most of the VC-backed businesses listed in the last few years "show little or no profit", and the reason is partly due to this, Nithin Kamath said. (Image: Instagram/@nithinkamath) Show Quick Read Summary is AI Generated. Newsroom Reviewed

Zerodha co-founder Nithin Kamath on Wednesday took to social media to criticise what he described as the "tax arbitration game" of venture capitalists backing various Indian startups.

"If you're an investor (especially a VC), the math is simple: reduce corporate tax by showing minimal profits or losses. Spend (Burn) on acquiring users, build a growth narrative, and then sell shares at a higher valuation while paying much lower tax," he posted on social media platform X.

Kamath explained that if one takes money out of a business as dividend, the e

See Full Page