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Indian Startups
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DizzySushi
DizzySushi
Stealth

Are loss making startups good or bad?

Everyone is raising questions about why startups are losing money so heavily

But on the other aspect, do people see that the sectors which are the highest loss making have become a crucial impact of our lives? Example Hospitality, Ed-Tech,Food Tech, Logistics and Ride hailing

Can we imagine our lives to go back where we were 10-12 years ago without such services?

I think the bigger game is going to be get more people to use the platform, make them high intent users and get them so used to to the platform that it becomes a necessity Hence I feel they are spending money to grab the audience and then build on it I am quite sure a lot of companies are going to fall, but that is how a the world of business behaves Would love to know thoughts

17mo ago
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SqueakyBagel
SqueakyBagel
Stealth17mo

Factors:

  1. How fast are they growing MoM?
  2. Is the unit economics improving QoQ?
  3. What’s the retention numbers for the org ( gives you a good idea about the product/service the startup is offering)
  4. What’s the runway and when are looking to turn profitable?
  5. What’s the avg attrition for the top management?

For sure this is not best way but a good way to understand if the company is in the right direction.

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