New-age tech stocks saw a mixed bag this week, with 31 gaining and 26 falling out of 57 tracked by Inc42. While Kissht surged almost 18%, Swiggy and Pine Labs dipped to fresh lows, reflecting a sharp divergence in investor sentiment. Beyond market swings, MobiKwik hit legal trouble with two FIRs filed in Bengaluru for alleged P2P lending fraud.
How We Got Here
Public markets have been tough on tech valuations since late 2022, pressuring firms to show profitability over growth. This week's Q4 earnings disclosures provided fresh data points, confirming the market's unforgiving stance on cash-burning entities.
The Numbers
- Kissht shares surged 17.76% to ₹231.7, hitting a fresh high of ₹259.5 on Thursday.
- Groww promoters offloaded shares worth ₹270 crore last week, including co-founders Lalit Keshre and Harsh Jain.
- MobiKwik faces two FIRs in Bengaluru, alleging misuse of funds via its Mobikwik Xtra P2P lending platform with partner Lendbox.
- Zaggle CFO Srikanth Gaddam resigned, effective May 27, to launch his AI startup, BuildWright.
- Awfis received a ₹6.53 crore tax demand from Tamil Nadu's Commercial Tax Officer for FY24 return discrepancies.
What Happens Next
🇮🇳 Why This Matters for India
For early-stage founders in Bangalore considering public market debuts, MobiKwik’s legal troubles highlight the intense regulatory scrutiny on fintech platforms.
The Take
The market isn't simply sorting by sector, but by clear unit economics; Kissht and Honasa show a path to profit, while Swiggy's continued losses scare public investors. Expect this trend to accelerate; firms without a clear profitability roadmap will struggle to attract public capital through 2025.
Source:
Inc42 ↗