The technology sector had a bumper 2021 owing to the pandemic-driven growth for digital platforms providing varied services and products, inventory market listings of new-age companies, and big-ticket funding rounds from outstanding enterprise capital companies and even non-public fairness funds resulting in a document variety of unicorns in a single yr.

2022 has been a actuality examine after the euphoria final yr and lots of fortunes have modified throughout the course of the yr. The startup funding winter triggered by the conflict between Russia and Ukraine together with rising rates of interest within the US pushed the sector into hassle, which was additional exacerbated by hovering inflation and looming threats of a worldwide recession.
At ETtech, we have been on high of his change being performed out in India and here’s a listing of ETtech’s high know-how and startup tales in 2022

Stock plunge of new-age tech companies: Shares of new-age tech companies that listed in 2021 – Paytm, Nykaa, Delhivery, PB Fintech (guardian of Policybazaar) and Zomato – had a torrid 2022 as most of them noticed a steep decline on the inventory exchanges. Large funds continued to dump their shareholding in a few of these corporations, pointing to extra ache forward, stated analysts, who warned retail traders towards mopping up these shares at this juncture. Among all of the new-age companies, Paytm turned out to be the worst hit after dropping over 70% of its market capitalisation since itemizing.

Read here for more: New-age business shares bleed further; analysts recommend caution

Here’s ETtech’s deep dive on what went wrong with Paytm IPO

Further, different startups akin to epharmacy agency PharmEasy, earphones and wearables agency Boat and etailer Snapdeal have now shelved their IPO plans as markets remained uneven and startups get scrutinised meticulously on their monetary well being.

Read here for more: PharmEasy delays IPO, targets Ebitda breakeven by next year

Freeing the fowl: Tech billionaire Elon Musk first introduced the acquisition of microblogging platform Twitter, then went again on his phrase and engaged in some social-media mud-slinging, and at last closed the deal a day earlier than the acquisition was to go to trial. Post his buy, he fired the CXOs and greater than half the employees, and since then launched into a journey to stamp his ‘free speech stand ‘by moulding Twitter to align together with his imaginative and prescient.

Read here for more: Elon Musk freed the bird, but who’ll free him?

Funding winter, recession fears & layoffs: One of probably the most important developments that indicated the ailing well being of the worldwide know-how sector was the sackings throughout Big Tech corporations akin to Meta, Amazon, Twitter, and Google (but to be formally introduced) and the delay in contemporary hiring in companies akin to Microsoft and Apple. Glocal macroeconomic headwinds, a protracted Russia-Ukraine battle, and hovering inflation contributed to dwindling revenues and shrinking advert spends.

Read here for more: Google, Meta lead Big Tech layoffs. All you need to know

Corporate governance considerations: 2022 will probably be remembered, fairly sadly, for the general public spat between BharatPe cofounder Ashneer Grover and the board of the fintech agency. Grover who resigned from the fintech startup in addition to its board stated he was ‘vilified’ and handled within the ‘most disrespectful manner’, capping a high-decibel battle that has raged for months.

Much-celebrated
Ankiti Bose, the cofounder of fashion startup Zilingo, too, had to resign owing to company governance points. Similarly, influencer-led video commerce agency
Trell had a forensic audit on allegations of company misgivings
. Its founder also shot off a fiery note to investors within the wake of the probe announcement.

Watch here for more: ETtech Exclusive: BharatPe Co-Founder Ashneer Grover on how he was pushed to resign

Also Read:
Ashneer Grover: The new rage in startup town

RBI’s diktat to fintechs: With the discharge of RBI’s new digital lending pointers, banks and non-banking finance corporations (NBFCs) have moved away from first mortgage default assure (FLDG) partnerships, dealing a blow to smaller fintechs by forcing them to lend at increased prices. As the regulatory overhang on fintechs continues, and the RBI taking steps to control varied facets of the sector, the working surroundings turned tough for the general sector which may pave the best way for consolidation within the time to return.

Read here for more: 2022 Year in Review | A tumultuous 2023 awaits fintech startups

Byju’s mounting troubles: Byju Raveendran and his edtech startup Byju’s has had a yr that they want to neglect. The most valued startup of the nation was marred in controversies from predatory advertising ways to delayed monetary outcomes, ultimately
leading to the layoff of at least 2,500 employees, all of it occurred throughout the yr. The firm was additionally hauled up for its commerce practices by completely different authorities ministries. Recently, it was summoned by the NCPCR within the wake of allegations that “guidelines” have been being violated by the edtech agency. Further, the nation’s largest edtech startup has additionally been questioned for the delay within the compensation of the mortgage it took to buy Aakash Institute final yr.

Read here for more: Byju’s losses swell to Rs 4,588 crore in delayed FY21 results

SoftBank harm by portfolio losses: Rajeev Misra, CEO, SB Investment Advisers, who managed SoftBank Vision Fund, stepped again from his government function on the know-how fund, in what was a significant rejig on the influential know-how funding agency. It additionally booked document losses from its portfolio corporations akin to WeWork, Uber and Coupang forcing them to rechart their methods for the long run. Son additionally stated the continued funding winter will last more for unicorn founders who’re unwilling to simply accept a decrease valuation to lift funds and proceed to imagine of their earlier valuation.

Read here for more: Rajeev Misra steps back at SoftBank to launch new fund

Tata’s foray into ecommerce: After a number of delays, Tata Group lastly launched its much-awaited tremendous app Tata Neu for the general public in April this yr. But, the journey since then has been gradual, compounded by senior-level exits and a doable consolidation to additional intensify its presence in ecommerce.

The Tata Group transferred the holding of Tata UniStore, which owns and runs the style and luxury-focused ecommerce platform Tata Cliq, to Tata Digital. Tata Digital thus turns into the only entity for all on-line procuring ventures of the Tatas, together with Tata Neu, BigBasket and Croma. It has additionally pumped in
more cash in BigBasket and
1mg this year.

Read here for more: Tatas bring all ecommerce ventures under digital business

Collapse of crypto: It all got here crashing down for the cryptoverse in 2022 because it confronted its hardest yr since its inception. Various governments cracked down on crypto exchanges, together with these in India, on allegations of cash laundering and tax evasion. The crypto market suffered a significant blow when the collapse of stablecoins akin to Terra and Luna triggered a meltdown, that solely turned worse because the yr progressed. The ultimate nail got here with the chapter of FTX – the second-largest crypto change on the earth – adopted by the arrest of its founder and crypto mogul Sam Bankman-Fried.

Read here for more: The charges against Sam Bankman-Fried