Profit paradox: What’s distorting IPO valuations? Zerodha’s Nithin Kamath shares striking insights

Zerodha co-founder Nithin Kamath highlighted how India’s tax structure incentivizes venture-backed firms to prioritize losses over profits. A significant tax disparity between dividend payouts and capital gains on share sales encourages growth spending and higher valuations for VC investors. This strategy, Kamath warns, creates less resilient businesses and makes competition difficult for profitable players.