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Is the time ripe for consolidation among new-age technology companies?

A rise in cost of capital has already weighed on the related stocks all across the globe over the past few months

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Back home, the stocks of recently listed new-age companies – Zomato, PayTM, Nazara Technologies, Indiamart, Policybazaar etc. – have also suffered in this global rout.

Puneet Wadhwa New Delhi
Tightening liquidity conditions and a shift in focus from growth to cash-flow is likely to drive consolidation among the new-age information technology (IT) companies going ahead, believe analysts. With tightening liquidity, start-ups, they said, have been shifting focus from growth at any cost to cash conservation as survival becomes key.

ALSO READ: Zomato's Blinkit acquisition may delay its road to profitability: Analysts

“Excess liquidity created a bubble, with many businesses lacking a path to profitability. Current conditions will bring-in the much-needed rationality, a positive for larger players, including traditional firms. Tough macro also present merger and acquisition (M&A)

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First Published: Jun 30 2022 | 12:19 PM IST

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