Food for thought

There is no proof or even symptoms to give these sweeping statements.

Now, for some of the companies profitability would have come at the cost of growth, then it is not sustainable. But companies like zomato are growing while not burning cash is a good sign.

People who are saying why sudden shift, because Market truimps every other strategy. When cost of capital is cheap, there is value chasing growth, when it become costlier, value chases profitability. It fluctuates. If zomato was showing 20 percent growth in 2021, they would have been punished by the investors by downgrading their value.

It’s always better to invest in hardcore businesses than startup when it comes to IPO. Never know how much it is cooked. Here are my few cents:

1. During IPO, always need to check what the company would do raising that money through IPO. If it’s for expansion and all(great stuff). If it’s for paying back(better to stay away from the IPO).

2. Checking for investments from institutional investors. If they have heavily subscribed, you can probably take a bet, even if retail segment isn’t that subscribed. Institutional investors will have more information and do more due diligence. For eg. There was mankind IPO wherein retail was not fully subscribed. I had subscribed to it and got allotment as well and was a neat 80% profit(sold after some few days of listing when price went to near ~1900.

I have stayed away from PayTM, Zomato and such kinda IPOs and will do it for others as well.

Adjusted EBITDA se toh mei Fyre festival ko bhi profitable dikhadu

Zomato become profitable because of the interest they earned on the 10k cr money lying in the deposits

Don't invest in any ipo. Wait for a year , we will get to see how shitty each of these business are.