In the face of wider market volatility, Indian new-age IT stocks saw further turbulence, building on the decline of the previous week. Replicating the corrections seen in the domestic equity market, eighteen out of nineteen new-age tech stocks had decreases ranging from slight dips to large plunges.
IndiaMART InterMESH stood out as the sole gainer, albeit modestly, with a 0.7% rise on the BSE. Conversely, Yudiz Solutions took the hardest hit, plummeting by 32.8%. Fino Payments Bank and DroneAcharya Aerial Innovations followed suit with declines of 11.4% and 10.6%, respectively. Other notable losses were observed in Zaggle, CarTrade Technologies, Tracxn Technologies, Yatra, ideaForge, Nykaa, and Delhivery, each witnessing drops exceeding 4%.
Notably, Paytm, amidst multiple developments, continued to endure pressure, marking a 7.5% decrease on the BSE.
Credits: The Economic Times
Teachmint’s Financials Reflect EdTech Industry Challenges
The Bengaluru-based edtech company Teachmint revealed financial information for the fiscal year that concluded on March 31, 2023, demonstrating a decreasing net loss trajectory. The unicorn created in 2020 experienced a 37% increase in net loss to INR 180.7 Cr in FY23 from INR 131.6 Cr in the previous fiscal year.
Even with the significant rise in losses, Teachmint demonstrated remarkable revenue expansion. In contrast to the INR 70 Lakh earned in FY22, operating income increased by nearly 11.5 times to reach INR 8.1 Cr in FY23. After accounting for additional sources, total income in FY23 was INR 36.9 Cr, compared to INR 13.4 Cr in FY22.
Startup Mahakumbh: India’s Premier Startup Event Beckons
The largest startup festival in India, Startup Mahakumbh, is being prepared for its March 18–20 date in New Delhi. Excitement is building. The event is anticipated to function as a meeting point for investors, entrepreneurs, corporates, and other international participants.
Leading the event are ASSOCHAM, Nasscom, Bootstrap Incubation & Advisory Foundation, TiE, Indian Venture and Alternate Capital Association (IVCA), and other prominent industry players. Supported by Invest India, MeitY Startup Hub (MSH), and the Department for Promotion of Industry and Internal Trade (DPIIT) are among the major government agencies involved.
SEBI Introduces Stricter Regulations for Alternative Investment Funds
In a statement, the Securities and Exchange Board of India (SEBI) revealed new rules for key management personnel (KMPs), alternative investment funds (AIFs), and AIF managers. According to SEBI, these companies now have a need to perform specific due diligence on their investors and investments.
By taking this action, regulators in the financial industry hope to prevent AIFs from circumventing regulations and to guarantee adherence to rules that are set forth. With regard to India’s developing alternative investment market, the decision highlights SEBI’s dedication to upholding integrity and openness.
Addressing Advertising Norms Violations
The recently launched portal is an essential instrument in the government’s campaign to reduce the number of advertising guidelines infractions. More accountability and transparency in the advertising ecosystem are the goals of the effort, which aims to publicly identify and hold accountable those who do not follow established criteria. Customers can use the portal to obtain information about violators, giving them the power to make wise decisions and encouraging ethical and just advertising activities.
Introduction of E-Court Facility for Consumer Disputes Resolution
The CCPA has launched an e-court facility in tandem with the portal launch with the goal of improving the consumer dispute settlement procedure. The digital court system, which was first introduced in a few states—Chanddigarh, Punjab, Haryana, Maharashtra, and Delhi—promises to completely transform the process for resolving complaints.
Conclusion: Navigating Challenges Amidst Opportunities
There have been a variety of changes in India’s startup environment over the past week. While market volatility put significant negative pressure on new-age tech stocks, Teachmint, an edtech startup, struggled with growing losses in spite of significant revenue growth. Positively, the excitement around Startup Mahakumbh emphasizes the tenacity and vitality of India’s startup scene, while SEBI’s regulatory actions underscore the necessity of strong governance structures. Opportunities are abundant as startups overcome obstacles, creating a dynamic environment that fosters innovation and expansion.
