After life in unicorn-decacorn club, start-ups stare at down rounds

This year, start-ups have collectively raised around $4.1 billion so far

Large Indian start-ups are likely to face down rounds as foreign investors slash valuations of bloated start-ups. Valuation multiples, observe analysts and investors, have dipped by as much as 60 per cent. This trend of a correction in valuation is likely to continue as consolidation in the start-up ecosystem increases amid liquidity crunch.

“We have observed a reduction in valuation multiples by 50-70 per cent in the market,” says Anand Prasanna, managing partner, Iron Pillar, who expects more such instances of valuation corrections shortly.

The start-up world, especially late-stage start-ups, has of late been at the receiving end of valuation