Flipkart has hit pause on its IPO in a jittery market. This and more in today's ETtech Top 5.
Also in the letter:
■ AI roils India's IT sector
■ TDB starts RDI fund disbursal
■ Pershing Square's stake in Microsoft
Flipkart pauses IPO discussions amid rising volatility in markets
Walmart-owned Flipkart has put its initial public offering (IPO) plans on hold indefinitely, joining a growing list of large internet firms delaying listings as volatility grips Indian markets and chokes the new-age IPO pipeline.
The move comes two months after PhonePe, another Walmart-owned company, pushed back its IPO, citing market uncertainty driven by the war in Iran.
Tell me more:
- Flipkart had been gearing up to file its draft IPO papers by late 2026 or early 2027, after securing NCLT approval to shift its domicile back to India.
- Bankers said turbulence linked to the conflict in West Asia and a crowded IPO calendar, with names like Reliance Jio, Zepto, and NSE in the queue, weighed on the decision.
- The pause follows Walmart CEO John Furner’s visit to India and his town hall at Flipkart’s Bengaluru office.
Quick commerce push:
- Flipkart is doubling down on its quick commerce business, Minutes, by adding nearly 100 stores per month. It is expected to reach 1,100-1,200 stores by July 2026, as Walmart stays bullish on the format.
- Heavy investments in Minutes, along with new bets such as food delivery and ticketing, are intended to build a strong growth story. But they also push out profitability and could make an IPO harder in a volatile market.
Also Read: Inside IPO-bound Flipkart’s C-suite: How the leadership team stacks up
Rapido raises $240 million from Prosus, WestBridge, Accel at $3 billion valuation
Urban mobility startup Rapido has raised $240 million in a new round led by Dutch technology investor Prosus, valuing the company at $3 billion.
Round details:
- Existing investors WestBridge Capital and Accel participated in the funding round.
- The investment is part of a larger $730 million raise that Rapido has closed.
- The round has both primary and secondary components.
ET has been on top of the development. In September last year, we reported that funding talks were underway, and in March, were the first ones to tell you about Accel Leaders Fund's participation in the round.
Fund use: Rapido said the money will go toward expansion in new and existing cities, growing its captain base, investing in technology and talent, and strengthening first- and last-mile connectivity in high-growth markets.
Rival update: The announcement comes during Uber CEO Dara Khosrowshahi’s visit to India. At a town hall in Bengaluru, he spoke about Uber’s growing focus on India’s two-wheeler market, which is also Rapido’s core.
PE firm Lightrock launches $500 million fund for companies focused on energy transition, EVs
Private equity firm Lightrock has launched a $500 million fund to support companies working on energy transition, wider energy access, and clean cooking.
Tell me more: The fund, called Accelerate7, will back growth-stage firms across South Asia, Southeast Asia, and Sub-Saharan Africa, writing cheques of $10–50 million.
AI reset erases nearly half of IT majors' value
India's top 10 software exporters by revenue are on track to lose around $200 billion in combined market value from their peak, as AI reshapes how clients spend on technology.
So far:
- The group peaked at $413 billion on December 13, 2024.
- By May 14, 2026, market cap had fallen to $227 billion, a plunge of $186 billion or 45%.
- In 2026 alone, the group has shed $98.7 billion in value, or 30%
- From individual peak levels, the total loss is $193 billion, marking the steepest absolute erosion so far, at about 45% drop.
Tell me more:
- TCS is down more than 50%, losing $87 billion in value.
- Wipro has also dropped more than 50%, wiping out $21 billion
- Tech Mahindra and Persistent Systems have fallen by about 25% and 30%, respectively, among the smaller declines in the pack.
Zoom out:
The sector has always seen sharp swings amid major geopolitical and technological shifts. This is the largest market cap erosion in absolute terms. During the dot-com crash in 2000, though, some stocks fell as much as 75% in just 6–7 months.
PLI revamp: Officials told ET that the Rs 17,000 crore production-linked incentive (PLI) scheme for IT hardware is likely to be tweaked in late FY27 (2026–27), after major payouts begin and component manufacturing scales up. AI servers and other AI-related hardware are expected to be brought under the scheme at that point.
TDB kicks off RDI fund disbursal, backs startups across space, drones, biotech
The Technology Development Board (TDB) has kicked off disbursals under the government’s Rs 1 lakh crore Research and Development Initiative (RDI), marking a key step in India’s deeptech drive.
Driving the news: TDB secretary Rajesh Kumar Pathak said the board plans to deploy Rs 500–600 crore in FY26, with the first batch of startups in drones, spacetech, biotech, and advanced batteries already receiving funds.
Fund allocation:
- TDB has been assigned Rs 2,000 crore as patient capital and works within RDI’s two-tier setup, which is designed to limit direct government involvement.
- The broader RDI pool will deploy Rs 20,000 crore in FY26, part of a six-year rollout.
- So far, 22 projects have been selected – 14 startups, 5 MSMEs, and 3 listed firms – with ticket sizes ranging from Rs 3 crore to Rs 100–150 crore.
Bill Ackman's Pershing Square takes stake in Microsoft, citing 'compelling' valuation
Bill Ackman said his hedge fund, Pershing Square, has taken a new position in Microsoft, calling the stock “highly compelling” at current levels.
What did he say?
- Ackman said Microsoft now rests on two core enterprise pillars: Azure cloud and the M365 suite, which includes Excel, Word, and the $30 Copilot AI tool, making the company central to how businesses adopt AI.
- He argued that worries about Azure’s competition and changes in the OpenAI partnership are overdone.
- He also supported Microsoft’s $190 billion 2026 spending plan, saying it is needed for future growth.
