#MCTech3 ?? Top tech and startup news this evening

In today’s newsletter:

• Tech IPOs on the backburner for now?
• ONDC's retail orders soar to 30,000
• Crucial week ahead for Byju's?

Also:?This multi-billion dollar company, which started as a toy balloon manufacturing unit, made history on Dalal Street today. Any guesses who? Scroll below to find out!

Tech IPOs on the backburner for now

Remember when founders used to talk about going public within two years? That was in 2021, during the peak of the funding frenzy. But two years later, none of those IPOs have materialised.

Before we jump to conclusions, let's clarify that the broader market cannot be blamed. Benchmark indices are currently near all-time highs, and the IPO market has remained stable.

Similarly, it would be incorrect to attribute this phenomenon to weak sentiment towards tech stocks.

• Paytm has rallied 55% this year, and Zomato is near its IPO price.

So what's stopping VC-backed tech companies from going public?

DRIVING THE NEWS

The sting of public market rejection in 2021 prompted unicorns to rethink their IPO strategies. Now, companies are treading cautiously, seeking new IPO tactics to thrive.

After talking to both private and public market investors, it has become evident that factors such as profitability and corporate governance are causing public market investors to approach with caution.

• Addressing these issues will take some time, industry observers believe, and so we may not see any tech IPOs in the next 12-18 months

REWARDS AHEAD?

The first batch of unicorn IPOs faced a lot of backlash from public investors initially. However, over the past year, as these companies worked cautiously to align with shareholders' demands, their shares rallied.?

• This suggests that public investors are willing to reward companies that perform well

This would encourage unicorns planning for IPOs to improve their fundamentals. Venture capital firms have also been working with these startups to help them achieve goals such as profitability and better corporate governance.

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