[ad_1]
By Satviki Sanjay
One of India’s biggest venture capital firms is turning more cautious in its investment strategy, alarmed by crises at homegrown startups such as ed-tech leader Byju’s.
Perceived corporate governance lapses are sending shockwaves through the South Asian nation’s fledgling startup economy. Byju’s, once India’s most valuable upstart, is in turmoil after missing a deadline on financial statements, skipping payments on a $1.2 billion loan and losing its auditor and some of its board members.
A Byju’s representative said the company didn’t have an immediate comment. Byju’s was valued at $22 billion late last year. Last month, one of its main investors, Prosus NV, slashed the value of its stake in a move that pegged Byju’s total valuation at about $5.1 billion.
The perceived mis-steps in governance resulted from a venture capital boom that lasted through 2021. Funding has dried up since as slowing economies, rising interest rates and higher levels of inflation prompted venture investors to pull back.
 "Chart")
“There is very little early-stage investing happening right now,” Reddy said. Blume, based in India’s financial capital of Mumbai, typically provides seed funding to upstarts.
That cautiousness dovetails with several small startups shutting down amid the funding winter. Investors have become more prudent and firms such as Blume are wary of writing a cheque for just “another e-commerce, marketplace or influencer marketing idea,” Reddy said.
[ad_2]
Source link