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Shares of new-age tech companies remained under selling pressure this week as broader macroeconomic conditions continued to take their toll on the Indian equities markets.
Of the 54 new-age tech companies under Inc42’s purview, only 11 companies saw their shares register gains in a range of 0.06% to close to 17%. Meanwhile, shares of 43 new-age tech companies fell in a range of 0.09% to over 13%.
Shares of EaseMyTrip plunged the hardest amid the sell-off in Indian new-age tech companies, falling 13.23% from last Friday’s close to end March 6 trading session at ₹7.48.
Pertinent to mention that 13 new-age tech companies saw their shares plummet to fresh lows this week. The companies that touched fresh lows this week included WeWork India, Awfis, Smartworks, IndiQube, Pine Labs, MobiKwik, Fino, Ola Electric, PhysicsWallah, Veefin, MapmyIndia, Urban Company, Zaggle, Swiggy, Capillary and DroneAcharya.
With the persistent bearish momentum, new-age tech stocks bled $7 Bn this week in cumulative market capitalisation to end the week at $120.3 Mn.
Now, let’s take a look at some of the most pertinent development from listed startups this week:
- Meesho received a tax demand notice worth ₹1,499.74 Cr from the IT department pertaining to “certain additions/adjustments to the income reported by the Company” for assessment year FY24.
- Disclosing its first financial performance post listing, AI and analytics firm Fractal Analytics reported a 9% YoY jump in its Q3 FY26 net profit to ₹100.1 Cr. Meanwhile, its operating revenue increased 21% YoY to ₹854.4 Cr for the period under review.
- Aye Finance reported a 87% YoY uptick in its Q3 net profit to ₹42.6 Cr while its operating revenue zoomed 23% YoY QoQ to ₹442.8 Cr
- PhysicsWallah sold 10% of its equity stake held in wholly-owned subsidiary Bharat Innovations Global to NSDC International Limited, a subsidiary of the National Skill Development Corporation, for an undisclosed amount.
- Tencent Cloud Europe BV offloaded 48.40 Lakh equity shares in PB Fintech via multiple block deals for ₹694.65 Cr. Investors like Goldman Sachs, Societe Generale, Viridian Asset Management, Tata Mutual Fund, etc, lapped up the shares.
With that, here’s what happened at the broader Indian equities market.
Geopolitical Tensions Trigger Sharp Sell-Off
Markets ended the week registering steep losses amid escalating clashes between the USA, Israel and Iran across the Gulf and the Middle East. Both Sensex and Nifty 50 declined by 2.9% to end the week at 78,918.90 and 24,450.45, respectively.
The tensions in the Middle East led to a sharp spike in global crude oil prices, impacting markets globally. “Shipping disruptions around the Strait of Hormuz heightened concerns about global energy supply, pushing Brent crude prices close to the $95 per barrel mark and raising inflationary concerns for India, given its heavy reliance on energy imports,” Ajit Mishra, SVP of research at Religare Broking, said.
Besides this, a persistent foreign institutional investor (FII) selling spree, which has been impacting the markets for some time now, further pressured the market. FIIs remained net sellers in the equity segment, with net outflows of nearly ₹21,831 Cr during the week. However, domestic institutional investors (DIIs) continued to provide support, infusing approximately ₹32,786 Cr, aided by steady SIP flows and long-term domestic participation.
With a lack of clarity on the outcome of the US-Iran conflict, a similar situation is expected to persist over the near term. Amid this uncertainty, investors in the Indian markets are moving towards traditional safe-haven assets and adopting a cautious stance, awaiting greater clarity, as per Geojit’s research head Vinod Nair noted.
With that, here’s a look at what happened with Fino and Ola Electric this week.
Tough Week For Fino
It has been a turbulent week for Fino Payments Bank, with a series of developments putting the fintech company under intense scrutiny.
The turmoil began after the bank disclosed that its managing director and CEO, Rishi Gupta, had been arrested by the Directorate General of GST Intelligence (DGGI) under provisions of the Goods and Services Tax (GST) law on February 27.
The arrest is linked to an investigation involving alleged GST violations tied to certain business partners and programme managers associated with multiple banks.
Authorities are probing transactions connected to suspected online gaming and shell entities, with investigators seeking information from the bank during the probe.
The development rattled investor sentiment. Shares of the payments bank plunged as much as 14% in early trade following the disclosure, hitting a fresh low of ₹167.80 on Monday. However, the company recouped some of the losses to end the week at ₹179.9, down 6.52% from last week.
To stabilise operations, Fino elevated its CFO Ketan Merchant to the role of MD & CEO of fintech for four months. The company has also maintained that the investigation relates to external partners and not to the bank’s own GST compliance.
The developments have also cast a shadow over the bank’s strategic ambitions. Earlier, the Reserve Bank of India had granted the lender an in-principle approval to transition into a small finance bank, a move that would allow it to expand into lending and accept larger deposits. Despite the ongoing turmoil, the bank has reiterated that its transition timeline remains on track.
Ola Electric Continues To Sink
Shares of Ola Electric remained under pressure this week, extending their prolonged decline amid weak sales, operational concerns, and a broader loss of investor confidence in the EV maker.
After touching an all-time low of ₹21.21 during intraday trading on Monday, the company’s shares ended the week at ₹24.04. This marks a 4.68% decline from last Friday’s close.
Important to mention that the company’s market cap has now fallen to $1.15 Bn, about 20% of its last private valuation of $5.4 Bn.
A key trigger behind the selloff this week has been deteriorating business performance. Ola Electric monthly sales for February declined more than 47% to 3,968 units from 7,531 units in January. It slipped to the sixth position in terms of market share in the E2W market for the past month.
At the same time, competitive pressures in the EV ecosystem have intensified as legacy automakers and new entrants ramp up electric scooter launches. Analysts have flagged that Ola Electric’s declining market share, alongside customer complaints around product quality and after-sales service, has further dented investor sentiment.
Edited by Nikhil Subramaniam
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