Indian VCs Love Foreign Startups. Indian Startups Love Foreign VCs.

There’s a strange irony playing out in the Indian startup ecosystem. Indian VCs chase founders in Southeast Asia and the US. Meanwhile, Indian startups roll out the red carpet for global investors. Everyone’s looking outward, and it’s starting to feel like a long-distance relationship gone stale.

But what if there’s a better way? A neutral ground where global capital meets Indian innovation, without the hassle of flying halfway across the world?

Enter GIFT City—India’s very own financial free zone that is quietly becoming a serious contender to global hubs like Delaware and Singapore.

For startups, GIFT City offers a chance to meet foreign VCs without ever leaving India. For Indian investors, it’s an opportunity to back global-first Indian startups that would otherwise have flipped overseas.

This shift is no accident. India’s regulatory environment has started catching up. From angel tax exemptions and GST waivers to a full decade of corporate tax relief, GIFT City is building the kind of founder- and investor-friendly ecosystem that used to be reserved for offshore jurisdictions.

More importantly, it’s powering a new trend: reverse flipping. After years of startups incorporating abroad for access to global funding and IPOs, many are now returning home. Giants like PhonePe and Zepto are already setting up in India again—and GIFT City is central to this shift.

Here’s what makes it work:

• Direct access to foreign investors and institutional capital

• 100 per cent tax exemption for 10 years

• A growing base of globally minded Indian funds

• No need to register overseas to scale globally

The result? Everyone wins. Founders get global capital while staying compliant in India. Indian VCs don’t need to board a plane to find world-class bets. And foreign investors now have a clear, regulated way to tap into Indian innovation.

So maybe it’s time to stop the mutual eye-rolling and start building bridges—right in GIFT City.