The unfolding of the startup ecosystem has not only put India on the global map, it has brought international trends to India. India's startups are today offering products and services at par with their global counterparts and the way they run their businesses is also becoming more and more streamlined like evolved ecosystems. One T such global trend that has played out in India in the last few years is the increasing number of acquisitions, i.e, takeover of one company by another.
Acquisitions often come in as a win-win for both the seller and the buyer. While the former opts to be acquired for reasons like lack of scalability beyond a point or to give an exit to the current investors, the latter is usually interested in the product or technology of the company. For the buyer, it is an easier route to expand rather than building new products and technology from scratch.
Acquisitions have also come in as a rescue measure for many startups that have been on the verge of shutting down due to global downturn-induced funding winter. However, there is a twist to this tale. Today, many acquisitions are going awry because of buyers and sellers getting into nasty quarrels.
SOME CASES IN POINT ARE:
→ Last month, Tiger Global-backed healthtech platform Pristyn Care reportedly suspended Rahul Narang and Saurabh Arora, the founders of Lybrate, a day after they served a default notice demanding outstanding payment resulting from the acquisition of their company. This came almost 12 months after the acquisition.
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