ET Tech2022 is a reality check following last year’s euphoria. A winter of startup funding sparked by the war between Russia and Ukraine and rising interest rates in the US has left the sector in trouble, exacerbated by a spike in inflation and the looming threat of a global recession. , keeping abreast of this shift taking place in India, here is a list of the top tech and startup stories for 2022.
Stock Market Crash for New Age Tech Companies: Stocks of new-age tech companies that went public in 2021, including Paytm, Nykaa, Delhi, PB Fintech (the parent company of Policybazaar) and Zomato, had a very tough year as 2022 saw a sharp decline in the stock market. Analysts say big funds continue to sell stakes in some of these companies, signaling more damage to come, and warn retail investors not to sell these shares at this time. Of all New Age companies, Paytm turned out to be the worst hit after losing more than 70% of its market cap since going public.
Please read here for details. New-age corporate stocks fell further.Analysts advise caution
Here are ETtech’s details on what went wrong with the Paytm IPO
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Additionally, other start-ups such as e-pharmacy company PharmEasy, earbuds and wearables company Boat, and retailer Snapdeal continue to see markets remain volatile and start-ups being vigilant about their financial health. IPO plans have been shelved because ofRead more: PharmEasy postpones IPO, targets Ebitda break-even by next year
Release Birds: After first announcing the acquisition of microblogging platform Twitter, tech billionaire Elon Musk went back on his word, sparking social media thieves and finally closing the deal the day before the acquisition went to trial. Done. After the purchase, he laid off his chief executive officer (CXO) and more than half of his staff, and has since emphasized his “free speech” by shaping Twitter around his vision. I embarked on a journey.
Read more: Elon Musk freed the bird, but who will free him?
Winter funding, recession fears and layoffs: One of the most significant developments to mark the downfall of the global tech sector has been the (yet officially announced) layoffs of big tech companies such as Meta, Amazon, Twitter and Google, as well as Microsoft and Apple. Global macroeconomic headwinds, the protracted Russian-Ukrainian conflict, and skyrocketing inflation resulted in lower revenues and lower advertising spending.
ET TechRead more here: Google, Meta Lead Big Tech Layoffs.all you need to know
Corporate Governance Concerns: 2022 will sadly be remembered for a public altercation between BharatPe co-founder Ashneer Grover and the board of a fintech company. Glover said he was “insulted” and treated in the “most disrespectful way”, closing out a high-decibel dispute that had raged for months.
Ankiti Bose, well-known co-founder of fashion startup Zilingo, also had to resign due to corporate governance issues. underwent a forensic audit. Its founders also issued a scathing note to investors following the announcement of the study.
Read more here: ETtech Exclusive: How BharatPe co-founder Ashneer Grover was forced to resign
Also read:
Ashneer Grover: The New Fury of Startup Town
RBI Mandate for Fintech: Release of RBI’s new digital lending guidelines moves banks and non-banking financial companies (NBFCs) away from First Loan Default Guarantee (FLDG) partnerships to hit smaller fintechs by forcing loans at higher costs gave The continued overregulation of fintech and the RBI’s steps to regulate various aspects of the sector could create a challenging operating environment across the sector, paving the way for future consolidation. .
Read more here: Review of 2022 | A turbulent 2023 awaits Fintech startups
Byju’s mounting trouble: Byju Raveendran and his edtech startup Byju’s have had a year to forget. The country’s most valuable startup has been marred by controversies ranging from predatory marketing tactics to delayed financial results, ultimately leading to the layoff of at least 2,500 of his employees. The company has also been pulled over by various government ministries for its trading practices.It was recently subpoenaed by the NCPCR following allegations that the edtech company violated its “guidelines.” Additionally, his edtech startup, the country’s largest, is under investigation for failing to repay the loan it took to acquire Aakash Institute last year.
Read more here: Byju’s loss balloons to Rs 458.8 billion on delayed FY21 results
SoftBank hurt by portfolio loss: Rajeev Misra, CEO of SB Investment Advisers, which managed the SoftBank Vision Fund, has stepped down from his executive role at the technology fund in a major restructuring of the influential technology investment firm. He also posted record losses from portfolio companies such as WeWork, Uber and Coupang, forcing him to rethink his strategy for the future. Son also said the ongoing fundraising winter will last longer for unicorn founders who are unwilling to accept lower valuations to raise money and continue to believe in previous valuations.
ET TechRead more: Rajeev Misra returns to SoftBank to launch new fund
Tata’s foray into e-commerce: After several delays, Tata Group finally launched its long-awaited super-app Tata Neu in April of this year. But progress since then has been slow, exacerbated by senior-level withdrawals and possible consolidation to further strengthen its presence in e-commerce.
Tata Group has transferred ownership of Tata UniStore, which owns and operates fashion and luxury-focused e-commerce platform Tata Cliq, to Tata Digital. Tata Digital will therefore be the sole entity for all Tatas online shopping ventures, including Tata Neu, BigBasket and Croma. We also put in more cash this year with BigBasket and 1mg.
Read more here: Tatas puts all e-commerce ventures under digital business
Crypto Collapse: In 2022, the Cryptoverse faced its most difficult year since its birth and everything fell apart. Various governments have cracked down on cryptocurrency exchanges, including in India, on charges of money laundering and tax evasion. The crypto market took a big hit when the collapse of stablecoins like Terra and Luna caused a meltdown, which got worse as the year progressed. The final nail followed the bankruptcy of his FTX, the second largest cryptocurrency exchange in the world, followed by the arrest of founder and crypto mogul Sam Bankman-Fried.
Read more: Accusations against Sam Bankman-Fried
