India's $45 Billion Startup Implosion Puts Tech Future in Doubt
Byju’s, Paytm falter in stark reminder of the unique risks and challenges facing the country’s tech economy.
Byju’s was the poster child, becoming the most valuable startup in the country.
Photographer: Dhiraj Singh/Bloomberg
By Sankalp Phartiyal
August 1, 2024 at 10:16 AM GMT+8
Save
For a brief, shining moment, India looked like the next big market for technology startups. Now, the country’s leading startups are struggling to survive and funding for the next generation of founders is drying up.
Potential profits have turned to dust. The online education pioneer Byju’s — once the country’s most valuable startup at $22 billion — has seen that figure drop more than 90% from its peak.
The digital payments firm Paytm pulled off what was India’s largest-ever initial public offering in 2021 — only to have its stock collapse about 80%. Oyo Hotels, a celebrated lodging business, has watched its valuation sink roughly 75% amid accounting problems and partner clashes.
Those three marquee names between them have shed more than $45 billion of market value from their peak. More than 35,000 startups wound down operations last year, according to one study.
Have a confidential tip for our reporters
