What’s wrong with India’s tech world? Potential collapse of big names Paytm, Byju’s signals change in digital landscape
- Struggles of digital payment platform Paytm and education tech firm Byju’s differ but have sounded alarm bells in the Indian sector
- Analysts expect more headwinds in the ‘underpenetrated, high opportunity market’ that is India’s tech sector
The Indian tech landscape is undergoing a significant transformation marked by the struggles of two major players Paytm and Byju’s as concerns mount over the fragility of the country’s start-up ecosystem.
Over the past two decades, India’s services exports, particularly in IT and business process outsourcing services, have been a crucial driver of the country’s economy.
However, the ambitions of tech start-ups have been hit by setbacks in the past year as the broader sector recorded a sharp drop in investments.
While the reasons behind the challenges faced by digital payment and financial services platform Paytm and education tech firm Byju’s differ, their simultaneous downturns have sounded alarm bells in the Indian sector with analysts expecting the repercussions to intensify.
Paytm is grappling with a crisis rooted in persistent non-compliance. The Reserve Bank of India (RBI) has mandated an abrupt clampdown on Paytm’s payment services, citing extensive non-compliance with regulations and failure to address supervisory concerns.
