The mood within the Indian start-up ecosystem has been sombre for sometime now. From battling the funding winter to laying off employees, there are several challenges that start-ups are combating.
Another challenge besetting start-ups is valuations getting slashed by investors. Experts believe that the increased focus on profitability and reduction in expenses have sparked this trend.
This is a wake up call for start-ups to focus on financial metrics to grow and scale up. Here are some start-up biggies who saw their valuations getting slashed.
US-based asset manager BlackRock has reportedly cut the edtech unicorn BYJU’s valuation by nearly half to $11.5 billion
US-based investment firm Invesco has slashed foodtech giant Swiggy’s valuation to about $5.5 billion from $8 billion, according to a recent filing
IPO-bound OYO’s valuation dropped to $6.5 billion from $12 billion after the company’s key investor SoftBank reduced the value of its stake in the start-up
US-based investment management company Vanguard has slashed the valuation of ANI technologies, the parent firm of Ola, by 35% to $4.8 billion. Ola was previously valued at $7.4 billion.
Mutual fund manager Neuberger Berman reduced the medtech start-up’s parent company API Holdings’ valuation by 21% to $4.3 billion. PharmEasy was preparing for an IPO this year but the plans were shelved owing to market conditions.
Neuberger Berman has also reduced the valuation of fintech firm Pine Labs to $3.1 billion from $5.5 billion.