San Francisco or Sarjapur? Best base for startups, according to Zerodha's Nithin Kamath is...

Zerodha co-founder and CEO Nithin Kamath on Tuesday stepped into the 'flipping' debate among startups, pointing out that India is becoming an attractive destination than it ever was. 

Flipping is the practice where startups, originally based in India, tweak their corporate structure to relocate their holding company and intellectual property to foreign jurisdictions despite having most of their market, personnel and founders in India. 

This is primarily done for access to deeper pools of venture capital, favourable tax, market penetration.

For India to grow inclusively, wealth has to be created locally, posted Kamath. Today, much of the success of homegrown startups goes to investors outside India, the Zerodha boss said in response to a post Paul Graham, who wrote, “A couple days ago an Indian founder in the current batch asked if he should base the company in SF or India, and I said the Indian startup community seemed to be thriving and it would be fine if he wanted to go back.”

"Staying in India and incorporating at home also saves the future hassle of paying huge taxes to flip back. Also, the growing local pools of capital, ever-improving regulations, and the growth of IPO markets have made India a much more attractive destination than it ever was," Kamath wrote.