New-age tech stocks experienced a sharp downturn this week, with the combined market capitalization of 65 companies falling by $3.6 billion to $166.6 billion, according to inc42.com. The decline was driven primarily by a steep sell-off in insurtech firms PB Fintech and Turtlemint, which dropped 33.02% and 34.97%, respectively, amid concerns over proposed commission caps by IRDAI.
The sell-off followed the announcement of regulatory changes by the Insurance Regulatory and Development Authority of India (IRDAI) that could limit insurance commissions, directly impacting revenue streams for insurtech companies. While PB Fintech and Turtlemint saw significant losses, SaaS company Capillary Technologies gained 24.59%, and Zelio E-Mobility rose 23.96%, with several other companies like Zelio, ESDS, Shadowfax, Nazara, and BlueStone hitting 52-week highs during the week. Meanwhile, other firms such as Shiprocket, IndiaMART, Menhood, Lenskart, Paytm, and Swiggy also ended the week lower.
This market movement reflects investor caution in the insurtech sector amid regulatory uncertainty, contrasting with positive momentum in select SaaS and e-mobility firms. The overall decline coincided with a seventh consecutive weekly drop in benchmark indices, underscoring broader market weakness. Despite the sell-off, primary market activity remained robust, with Moneyview and AceVector launching IPOs and Spinny filing IPO papers confidentially, signaling continued investor interest in new-age tech companies.
Moneyview’s initial public offering opened with a ₹1,092 crore subscription, marking a notable event in the primary market this week, as reported by inc42.com.