Is the time ripe for consolidation among new-age technology companies?

A rise in cost of capital has already weighed on the related stocks all across the globe over the past few months

Tightening liquidity conditions and a shift in focus from growth to cash-flow is likely to drive consolidation among the new-age information technology (IT) companies going ahead, believe analysts. With tightening liquidity, start-ups, they said, have been shifting focus from growth at any cost to cash conservation as survival becomes key.

“Excess liquidity created a bubble, with many businesses lacking a path to profitability. Current conditions will bring-in the much-needed rationality, a positive for larger players, including traditional firms. Tough macro also present merger and acquisition (M&A)