Hyped-up valuations in the private markets have led to many storied tech companies and start-ups in India to fare disastrously in the public markets where investors are rejecting these valuations. As a consequence, there has been serious erosion of investor wealth. It’s time Indian start-ups and their investors get real.
Several factors threaten the Indian start-ups story. Layoffs, suspension of operations and other tough measures are now being witnessed. Founders will have to brace for impact, and weather the storm for the next 12 to 18 months.
The Reserve Bank of India’s shock 40 bps repo rate hike, together with a 50 bps increase in CRR, has stirred intense debate about the timing of the moves. But Governor Das does have, in his own words, ‘several storms’ to tackle.
Tata group chairman Natarajan Chandrasekaran is instrumental in pivoting the 154-year-old salt-to-steel conglomerate into new business avenues, especially with the launch of the super app Tata Neu. But it’s a bitterly competitive new world. And shareholders are watching keenly.
While India’s start-ups have become the toast of the world, there is also a growing concern that due to a few rotten apples, the entire ecosystem might get affected. Corrective measures need to be put in place urgently.