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Context is everything.
Detailed stories on technology startups, business and economic current affairs.
Detailed stories on technology startups, business and economic current affairs.
After a decade of being in business, Zomato is still selling investors a distant dream where it will somehow become a viable business.
Editor's note: Yesterday Zomato, one of India’s two big food delivery companies, filed its draft papers for an initial public offering. This has been a long time coming. Never before have India’s public market investors encountered an internet stock which has never turned a dime in profit in its corporate history. Well, now we have one and we’ll see how that goes. On the face of it, it is important to establish what Zomato is not. It is not Just Dial, one of the famed public market internet stocks of its time. Zomato is certainly not Info Edge, incidentally the food delivery company’s largest shareholder. It is not Indiamart or Bharat Matrimony. All of these companies have one thing in common; they are a play on India’s internet penetration and domestic growth/consumption story. The difference is that while most of these companies turn in real cash, quarter after quarter, Zomato does not. So in that context, Zomato is closer to a company like MakeMyTrip, which listed in the US back in the day and remained loss-making for a while. The hope of …
After a decade of being in business, Zomato is still selling investors a distant dream where it will somehow become a viable business.
Editor's note: Yesterday Zomato, one of India’s two big food delivery companies, filed its draft papers for an initial public offering. This has been a long time coming. Never before have India’s public market investors encountered an internet stock which has never turned a dime in profit in its corporate history. Well, now we have one and we’ll see how that goes. On the face of it, it is important to establish what Zomato is not. It is not Just Dial, one of the famed public market internet stocks of its time. Zomato is certainly not Info Edge, incidentally the food delivery company’s largest shareholder. It is not Indiamart or Bharat Matrimony. All of these companies have one thing in common; they are a play on India’s internet penetration and domestic growth/consumption story. The difference is that while most of these companies turn in real cash, quarter after quarter, Zomato does not. So in that context, Zomato is closer to a company like MakeMyTrip, which listed in the US back in the day and remained loss-making for a while. The hope of …
The quick-commerce startup weighs a valuation cut or finding alternative funding to stay afloat as investor appetite for loss-making businesses weakens.
Bistro may look like a response to Swiggy and Rapido’s 'budget' food delivery apps, but the similarities end at affordability—the playbooks are fundamentally different.
The Bengaluru-based contract manufacturer lands in legal hot water with the California-headquartered transformer startup over a trade secret dispute.
The quick-commerce startup weighs a valuation cut or finding alternative funding to stay afloat as investor appetite for loss-making businesses weakens.
Bistro may look like a response to Swiggy and Rapido’s 'budget' food delivery apps, but the similarities end at affordability—the playbooks are fundamentally different.
The Bengaluru-based contract manufacturer lands in legal hot water with the California-headquartered transformer startup over a trade secret dispute.
