New-Age Tech Stocks: Fino Payments Bank Surges 29%, Go Digit Leads Weekly Losers

As the June quarter earnings season gathered pace, investors remained largely cautious on listed new-age tech stocks this week despite the broader market ending on a positive note. 

Of the 58 listed new-age tech companies tracked by Inc42, 39 stocks ended the week in the red, declining between 0.38% and nearly 10%. Insurtech major Go Digit emerged as the week’s worst-performing stock ahead of its June quarter earnings next week. The company’s shares touched an all-time low of ₹280.75 during yesterday’s trade before closing at ₹281.70, down 9.77% from the close of July 10 (Friday). 

Besides Go Digit, stocks such as Aequs, PhysicsWallah, Delhivery and ideaForge also witnessed profit booking this week after rallying in recent weeks.

Despite the cautious sentiment, 17 listed new-age tech stocks, including Groww, Swiggy, Wakefit, and Nazara, ended the week higher, posting gains ranging from 0.3% to nearly 30%.

Fino Payments Bank led the gainers after surging 29.16% during the week. Meanwhile, Zelio, Ather, RateGain, Paytm, Honasa Consumer, Nykaa and Amagi hit fresh 52-week highs. 

Overall, the cumulative market capitalisation of the 58 new-age tech companies stood at $142.41 Bn at the end of the week as against $143.54 Bn a week ago.

The week saw a number of listed companies, including IT majors and private sector banks, declare their Q1 results.

Here’s a snapshot of the earnings announced so far. 

With that, let’s take a look at some of the key developments from the new-age tech ecosystem this week.

Key Updates Of The Week

PhysicsWallah Strengthens IAS Play: Months after acquiring a stake in Sarrthi IAS, the listed edtech major purchased an additional 11% stake for ₹72 Cr to become the majority shareholder in the UPSC test preparation coaching institute.

Zelio Expands Manufacturing Capacity: The Hisar-based EV maker set up a manufacturing facility in Tamil Nadu’s Coimbatore to increase its annual production capacity by 60,000 EVs. Spread across about 39,000 sq ft, the facility will support electric scooter assembly, warehousing, logistics and other allied operations.

Stake Sales Continue At Lenskart: Lenskart’s strong post-listing performance continued to trigger exits by early investors, with Temasek offloading 3.56 Cr shares worth about ₹1,934 Cr this week. With this, it joined investors such as ADIA, SoftBank and KKR, which have pared their holdings in the eyewear major in recent months.

Flipkart Eyes Partial Exit From Shadowfax: A Moneycontrol report said Flipkart is looking to sell shares worth about ₹700 Cr in Shadowfax after the expiry of its lock-in period later this month. The logistics startup, however, denied having any knowledge of the reported transaction.

Paytm To Consider First Bonus Issue: The fintech major’s board will consider a proposal for its maiden bonus share issue alongside its June quarter (Q1 FY27) financial results at its board meeting on July 20 (Monday). 

Kissht Enters Mutual Fund Distribution: The lending tech company has entered the mutual fund distribution business after receiving authorisation from the Association of Mutual Funds in India (AMFI) for its recently incorporated wholly owned subsidiary, Invincible Minds.

Buzz Around Zepto’s IPO: Zepto is likely to go public at a valuation well below its $7 Bn peak private valuation, with investors reportedly pricing in concerns around cash burn, profitability, and broader market uncertainty. However, institutional demand remains robust, with foreign investors looking to back the IPO at a pre-money valuation of about $4.5 Bn. 

Here’s a look at the broader market trends this week.

Markets Shrug Off Global Jitters

Indian equity markets ended the week higher despite heightened geopolitical tensions and volatility in global markets, with investors moving towards large-cap stocks ahead of the ongoing earnings season.

Sentiment remained resilient even as escalating tensions in West Asia pushed crude oil prices above $85 a barrel and weighed on the rupee. Optimism around Q1 FY27 earnings and business updates from listed companies helped offset some of these concerns.

According to Geojit’s head of research Vinod Nair, investors are now rotating capital from mid- and small-cap stocks into large caps, attracted by relatively attractive valuations, stronger earnings visibility, and greater resilience amid global uncertainty.

Sectorally, IT stocks emerged as the week’s top performers, buoyed by encouraging management commentary and improving expectations for the ongoing earnings season.

Looking ahead, investors will closely track Japan’s inflation data for cues on global interest rate expectations, while India’s upcoming PMI data will offer fresh insights into domestic business activity and economic momentum.

“Supported by robust economic fundamentals, healthy domestic demand, and a diversified growth profile, India remains well placed to attract long-term capital flows,” Nair added. 

With that, here’s a closer look at the performances of Fino Payments Bank and WeWork India this week.

Signs Of Revival For Fino Payments Bank?

After months of prolonged weakness, Fino Payments Bank emerged as the week’s top gainer, with its shares surging 29.16% to close at ₹174.95.

The rally came after the company’s June business update pointed to early signs of an operational turnaround, even as its core payments business continued to face structural headwinds.

During the month, Fino added more than 3.1 Lakh new deposit accounts, up 31% YoY, while average deposits rose 11% YoY to ₹2,755 Cr. Customer engagement also improved, with digitally active customers increasing 22% and active FinoPay users jumping 38%, indicating stronger adoption of the bank’s digital offerings.

The biggest positive, however, came from its loan referral business. Loan disbursals surged 3.5X YoY to ₹240 Cr, highlighting the growing credit potential of Fino’s customer base. The segment is expected to play a key role in the bank’s proposed transition into a small finance bank.

While overall transaction throughput continued to decline amid India’s rapid shift from cash-based transactions to UPI, the company said the pace of decline has moderated compared to previous months, suggesting the worst may be over for its legacy payments business.

The improving operating metrics, coupled with growing traction in higher-margin businesses, boosted investor confidence. 

WeWork India Slips On Q1 Loss

WeWork India reported a mixed set of results for the June quarter, with strong growth overshadowed by net loss and rising expansion costs, prompting investors to remain cautious. 

The coworking major slipped into the red, posting a consolidated net loss of ₹4.1 Cr. However, loss narrowed 71% from ₹14.2 Cr reported in the year-ago quarter. The company attributed the loss entirely to its transition to Ind-AS accounting standards, adding that it would have reported a net profit of ₹53.2 Cr on an IGAAP-equivalent basis. 

Operationally, the business continued to expand at a healthy pace. Revenue from operations rose 28% YoY to ₹683.8 Cr. 

The company added nearly 7,000 desks during the quarter, taking its operational capacity to more than 1.3 Lakh desks across 79 centres in eight cities. Occupancy improved to 84.9%, while its customer base grew nearly 30% YoY to 1.1 Lakh. More than half of all new sales came from existing customers expanding their footprint within the company’s network.  

However, investors appeared unconvinced that the company’s strong operating momentum would immediately translate into higher earnings. Total expenses rose 26% during the quarter as WeWork India continued to invest in expanding its footprint, weighing on reported profitability.  

The cautious sentiment was reflected in the stock’s performance, with shares declining 7.45% during the week to close at ₹677.85. 

Edited by Vinaykumar Rai

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