Late-stage funds set  to dry up as investors put profitability first

Mumbai: Late-stage deals in Indian startups are expected to slow down, with investors turning cautious of funding companies with a high burn rate following the meltdown of WeWork.

The Indian startup ecosystem has been marked by a number of high-growth, near-decade-old businesses, which, despite being nowhere near profitability, continue to raise huge volumes of capital with no near-term exit route in sight for investors. Think Ola, Oyo, et al. But this may change soon.

The collapse of WeWork’s initial public offering and the disappointing listings of Uber and Lyft are prompting late-stage investors to reconsider the metrics of investing in Indian startups.