What SC's landmark tax verdict on Tiger Global-Flipkart share sale means for investors
- Manu P Toms
- ET PrimeUpdated: Jan 19, 2026, 18:19 IST IST
In a watershed judgment last week, a two-judge bench of the Supreme Court pronounced that Tiger Global is liable to pay capital gains tax – to the tune of $1.6 billion, according to various estimates – on its proceeds from the Flipkart share sale back in 2018. The judgment might have tax ramifications for a large chunk of the global capital that flowed to Indian startups – which is why it has venture capital investors worried.
For context, around 85% of the Indian startup ecosystem’s estimated $165 billion venture capital is from abroad and a lion’s share of this foreign money came via offshore structures similar to what Tiger had deployed. Many such investments, after 10-15 years of waiting, are ready for cash-out with the great IPO boom in the domestic public market.
For context, around 85% of the Indian startup ecosystem’s estimated $165 billion venture capital is from abroad and a lion’s share of this foreign money came via offshore structures similar to what Tiger had deployed. Many such investments, after 10-15 years of waiting, are ready for cash-out with the great IPO boom in the domestic public market.
