Tiger Global Tax Verdict: India's Startup Story Unfazed, Returns Trump Structures

• The Supreme Court ruled Tiger Global's Flipkart stake sale to Walmart is taxable in India, calling the Mauritius route "treaty shopping."
• Venture capitalists assert that India's strong market depth, growth potential, and high returns are more critical than tax-friendly structures for investment decisions.
• Siddarth Pai of 3one4 Capital highlighted India's large consumer base, fast growth, and deep talent pool as primary attractions, not just tax considerations.
• Mitesh Shah of Inflection Point Ventures emphasized that taxation is a byproduct of gains and the ruling reinforces "substance over form," unlikely to deter serious investors.
• Ajay Rotti of Tax Compaas noted that the shift away from tax-driven structures has been ongoing, and the verdict solidifies this trend, encouraging direct investment into India.

Why It Matters: India's startup ecosystem remains attractive to global investors despite the Tiger Global tax ruling, prioritizing returns over tax structures.