Why VCs are still backing Indian startups despite growth stocks crashing

The last few months have not been good for startups and their venture capital (VC) backers.

Growth stocks like Southeast Asia’s largest ride-hailing and food delivery company Grab, ecommerce giant Sea Limited, Indian companies Paytm, Zomato and Freshworks are some example of unicorns that went public recently but have performed poorly against the rest of the market.

Grab and Sea Limited, both listed in the US, are down 65 per cent year-to-date. India listed delivery firm Zomato is down 49 per cent whereas fintech company Paytm is down 53 per cent.

Both are listed in India while Nasdaq listed software house Freshworks is down 40 per cent for the year.