Long on Zomato

Zomato delivered another great set of results. Now they are adding 250Cr cash every quarter. The company hit two benchmarks this quarter according to my calculations, 50,000 Cr worth of orders (4x Q3) and 100 Cr orders (4x Q3), and these are growing 25-30% year on year. Why is this interesting? As some of you might know, they have started adding platform fees to the orders. Even one more rupee of platform fee will add 100 Cr to EBITDA. So, if they increase fees from 5 to 10, that's 500 Cr more EBITDA every year. Now, If you look at this quarter's results vs last quarter's results, they have added ~3600 Cr of order value, and made 380 Cr of EBITDA (this does not include Events). Which means they are making 10% as EBITDA. In next 3 years, if Zomato doubles their order value to 1,00,000 Cr, and even make 8% EBITDA, this could mean 8000 Cr EBITDA (almost 1 billion dollars). What markets will give as multiple on this, is guess work. Could be 25-40x (Don't hold me on this). Hence the stock looks undervalued from a 3 year lens

A platform designed for companies to solve food expense management. A lot of Zomato orders placed by corporate employees are business-related and need to be reimbursed by the company. The reimbursement process is cumbersome and time-consuming. With ZFE, employees can simply bill their business orders directly to their employer, without having to pay. Companies can use ZFE to add employees, set budgets, define ordering rules and much more. ZFE adds convenience to your employees, while we take care of the rest - with complete transparency.

https://economictimes.indiatimes.com/tech/startups/zomato-offers-to-acquire-shiprocket-for-2-million-report/articleshow/106183569.cms Any one has any idea on what valuation Tribe is looking to lead $75M round into Shiprocket? https://techcrunch.com/2023/12/11/tribe-capital-eyes-leading-75m-plus-funding-in-india-shiprocket/ Looks like they are looking to preempt

At one point Swiggy had more money, Zomato was close to bankruptcy. But what is the reason Zomato is ahead today?

Food tech market is 50B+ ( duopoly) Most of my friends use swiggy for everything like food, groceries and dine out. They say Zomato sucks in ui ux and 3rd grade restaurants are there at Zomato, swiggy is better at offers and quality restaurants. Zomato peak stock value was 180inr, which makes it a 15B firm, by that logic swiggy can get even 20B ipo. PS - Baron capital already raised swiggy valuation to 13.9B usd What do u think guys?

This may sound like a dumb question, but why do these companies fire just before the IPO? isn't an IPO a good thing? More cashflow. Shouldn't they be taking care of their employees who made it reach there? What exactly is the thought process behind this mass layoff before IPO?

Case in point: Blinkit turnaround, like Grofers was struggling, bought them and did entire re-branding and came back stronger. Now Blinkit is winning market share like crazy in Q-commerce. What gives them so much of superpower? Is it the founders? is it the team? is the the strategic thinking? is it the execution? or is it all together at once?

VC here. Doing this for fun. Don't take all views seriously.