India’s biggest technology startups are finally getting a taste of devaluation.
For the last couple of years, India was flooded with venture capital money, which helped several tech companies become unicorns—startups valued at over $1 billion. But now, some of the biggest players in the sector seem to be coming apart at the seams.
“At the time when money was coming into the country, everyone benefited and valuations across sectors shot up. Now, there is a need for correction across the board and I expect more devaluations to happen,” Sanchit Vir Gogia, chief analyst at Greyhound Research, said.
“There is a moral impact on the entire category,” Gogia said. “When a company like Flipkart is devalued, everybody is bound to question the valuation of all other players. The general belief would be that if the market leader is under pressure, others are bound to face similar issues too.”