New-Age Tech Stocks Lose Over $5 Bn In M-Cap, MobiKwik Hit Hardest This Week

New-age tech stocks bled this week as the Indian equities market broke their three-week winning streak. Barring Smartworks, BlackBuck, RateGain, DroneAcharya and Go Digit, 34 of the 39 new-age tech stocks under Inc42’s coverage plunged in a range of 1.16% to over 13%. 

With this, the cumulative market capitalisation of these companies declined over $5 Bn to $104.91 Bn from $110.28 Bn at the end of the last week. 

Ather Energy’s shares slumped after soaring to an all-time high of INR 614.75 on Monday (September 22). The stock ended the week 7.63% lower from last week, falling significantly over the last two trading sessions. On Thursday (September 25), the company announced its plans to defer the submission of claims for demand incentives to the tune of INR 26.2 Cr under the Centre’s PM E-DRIVE scheme due to rare earth magnet shortage.  

Recently listed Urban Company’s shares also touched an all-time high of INR 201 during the intraday trading on Monday. However, the stock saw profit booking after that and ended the week 7.37% lower at INR 171.45. The stock is still trading 6.5% above its listing price of INR 161. 

Coworking space provider DevX, which made its market debut on the same day as Urban Company, has been under pressure since listing. The stock ended the week at INR 53.44, down about 13% from the listing price and 8.02% week-on-week. It touched an all-time low of INR 52.20 on Thursday. 

The rout at EaseMyTrip continued this week, with the company’s shares touching yet another low of INR 8.12 during the intraday trading on Friday (September 26). Its shares ended the week at INR 8.18, down about 7% from last week. 

Meanwhile, all large new-age tech companies bled this week. While Zomato-parent Eternal lost about $2 Bn in market cap this week, other notable companies like Paytm (down 4.45%), Ola Electric (lost about 5%), Delhivery (lost over 7%) also saw correction. 

So what led to the bloodbath in the Indian market this week?

Markets Reel Under Tariff Jitters

The Indian equities market saw its sharpest weekly decline in months, as global trade tensions and relentless FII outflows triggered heavy selling across the board. The Nifty 50 slumped 2.56% to close at 24,654.70, while the Sensex shed 2.62% to end at 80,426.46.

The brunt of the correction was borne by mid- and small-cap counters, observes Ajit Mishra, SVP of research at Religare Broking.

Retail investors, who had driven recent gains in these stocks, saw a sharp erosion in their paper profits as these counters fell faster than the broader market. 

Mishra said that weakness in large-cap IT stocks, coupled with uncertainty around H-1B visa regulations, weighed on market sentiment. He added that mid- and small-cap tech and fintech stocks, many trading at stretched valuations, faced the sharpest corrections as investors reassessed growth prospects in the face of external risks.

“Weakness in heavyweights has accelerated the decline, with the Nifty approaching key support near 24,400. Continued FII selling and sector-specific headwinds may keep the broader trend fragile,” he added. 

Looking ahead, next week will be data-heavy. Domestically, industrial production figures, the RBI’s policy decision, and the expiry of September derivatives contracts could lead to volatility. 

Globally, updates on the US-India trade deal will be closely tracked. With risk appetite under strain, analysts advise investors to stay defensive, avoid high-beta smallcaps, and keep liquidity handy until clarity emerges. 

“However, the sustainability of current market valuations hinges on a visible recovery in corporate earnings and resolution of the India-US trade frictions,” said Vinod Nair, head of research at Geojit Investments. 

With that, let’s take a look at the week’s biggest losers — Swiggy and MobiKwik. 

MobiKwik Shares Slide After Second Fraud Case in Six Months

MobiKwik’s shares continued their downward trajectory this week, plunging 13.32% to close at INR 254.75. The stock is now down 42.40% from its listing price. The fintech company’s woes on the bourses have been compounded by repeated operational lapses and weak financials. 

The latest setback follows a financial mishap earlier this month, when the company reported a fraud of INR 40 Cr.

The company later said that the incident took place due to a “limited internal processing error”, which led to certain failed transactions being incorrectly marked as successful and resulting in unauthorised payouts to merchants in Haryana’s Nuh district. 

However, this is not the first operational lapse for MobiKwik. In March, the company reported an internal fraud of INR 1.3 Cr involving a former employee. On the financial front, the company’s revenue from operations fell 20.7% YoY to INR 271.4 Cr in Q1 FY26 and net loss widened 535% to INR 41.9 Cr, reflecting ongoing challenges in scaling the business profitably.

Eventful Week For Swiggy

Foodtech major Swiggy made headlines this week with two significant strategic moves. Its board approved the sale of its stake in mobility startup Rapido to existing investors Prosus and Westbridge for a total consideration of about INR 2,400 Cr ($270.4 Mn). 

Swiggy had acquired around 12% stake in Rapido during its $180 Mn Series D round in 2022. This followed Rapido’s entry into the food delivery space via its Ownly platform, creating a potential conflict with Swiggy’s core business. Swiggy described the exit as a shareholder-focussed move to realise investment value, reportedly reaping a 2.3X return on the bet.

Besides, Swiggy announced plans to hive off its quick commerce arm Instamart into a step-down subsidiary, Swiggy Instamart Private Limited, via a slump sale. The move is aimed at creating a focused corporate structure for Instamart, allowing independent governance, sharper operational focus, and enhanced flexibility in capital deployment. 

Industry observers note that this setup paves the way for a dedicated fundraise, enabling the company to bring in fresh capital without impacting Swiggy’s core business structure. Taken together, the Rapido exit and Instamart spin-off signal a strategic recalibration.

Meanwhile, the company’s shares bled 8.75% to close the week at INR 420.85.