The Financial Express | 8 December 2022
With 230 merger and acquisition (M&A) deals in 2022 so far, India’s tech startup segment continues to witness consolidation. With about a month to go, the number of transactions is slightly behind the 242 reported in 2021. But experts believe the funding winter could push many more of the smaller startups to sell out to larger peers. While many of them have revamped their cost structures by opting for retrenchments to improve the cash runway, many startups are bracing for down rounds next year.
Investors active in the startup space indicate that 2023 could see more consolidation as more small to mid-stage startups may find it harder to raise cash on favourable terms. Manu Rikhye, partner, Merak Ventures, said the funding crunch of 2022 will drive more M&A activity next year as both founders and investors may rush to protect existing valuations.