Yash Simariya

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Fintech!

[Giorgia Meloni @GiorgiaMeloni]

Thank you for the gift

[Yash Simariya @Yash_Simariya]

@aditiraval @Tataev Whats the issue here? 50% and 111km range is fine right? Or I am missing something

[Yash Simariya @Yash_Simariya]

@jcrfear @CutMyTaxUK Why not setup LTD?

[Garry Gray @GarryJGray]

My mate suddenly quit his job at BMW.

He gave absolutely no indication he was leaving.

[Kunal @buntyverse]

Nah, I ain't fleeing Dubai

Mama didn't raise a quitter

She raised a tax evader

[Yash Simariya @Yash_Simariya]

@AlanJLSmith @jelambhatt

[Nithin Kamath @Nithin0dha]

If you take money out of a business as dividends, the effective tax rate is 52% (25% corporate tax + 35.5% on personal income). Through capital gains, it's just 14.95% (with cess).

Why does this matter? Here’s what you should know if you invest in IPOs.

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.

This spending also makes it harder for competitors to survive. To be clear, we're not discussing R&D spending here, which, incidentally, is very low in India (0.7% of GDP).

What's often overlooked is that VCs are essentially playing a tax arbitrage game. Look at most VC-backed businesses listed in the last few years, the reason they show little or no profit is partly due to this. Once you run a business this way, it's extremely difficult to switch.

Every startup that's 7-8 years old from the time of raising the first round faces constant pressure from VCs for an exit. With almost no M&A opportunities in India, IPO is often the only way out.

The government probably designed this tax arbitrage to incentivize companies to spend money and not just accumulate and distribute. But I'm unsure if the balance is correct. I think it's also creating businesses that aren't very resilient. One prolonged market downturn, and many of these unprofitable companies would struggle to survive.

Two things that make this more interesting:

Unprofitable growth gets valued at much higher multiples than steady profits. A company doing ₹100 cr revenue with 100% growth might get 10-15x, while a profitable one with 20% growth gets 3-5x. So VCs aren't just saving on tax; they're in essence creating a 3x higher exit valuation.

If you're competing against someone burning cash, you almost have to match it to defend market share, even if you don't want to, because of the quirks I mentioned above.

[neural nets. @cneuralnetwork]

If you lose a leg, your BMI goes down. If you lose another leg, your BMI goes up

[dk is not a real person @dk_fakegod]

I have a startup idea. Rent-a-white-guy

If you have an issue with some government authority we will lend you a white guy who will complain on your behalf.

[𑘭𑘓𑘱𑘡 @1921winden]

😭😭

[Jimmy Neesham @JimmyNeesh]

Kids, don’t take up sport. Take up baking or something. Die at 60 really fat and happy.

[Rahul @ittzz_rahul]

Washington Sundar

[Jarrod Kimber @ajarrodkimber]

You cannot middle a ball much more than this.

[Nithin Kamath @Nithin0dha]

I did a credit check on @zerodhacapital to check out the flow, and my score is 747.

So I am not good enough for @CRED_club, @kunalb11 😬

[Yash Simariya @Yash_Simariya]

Crossed some Zebras today!

[Dr.Jignesh Shah @bankniftydoctor]

🚨 URGENT APPEAL – IMA Gujarat
In response to the mass casualty caused by the flight accident, *doctors from Orthopedics, Plastic Surgery, and Anesthesia from Ahmedabad and nearby are urgently requested to immediately report to Civil Hospital Ahmedabad* for voluntary medical service.

Your prompt presence is critical to manage emergency care and save lives.
IMA Gujarat doctors stand united in service during this crisis.

#MedTwitter

[Sagar @sagarcasm]

Krunal Pandya 🔥

[Yash Simariya @Yash_Simariya]

IPL won Virat Kohli

@imVkohli @RCBTweets

[O Jaganade @OmkarJ310]

As the legends say, "Timing is everything". 🤣😭
Money matters @londontechcoll

[Aadit Sheth @aaditsh]

Steve Jobs dropped the coldest business truth of all time