1 year back all startups were losing money like crazy while all of a sudden everyone from Swiggy to Meesho to Unacademy are profitable or EBITDA positive. Other companies which were profitable earlier have not shown a spike in profit.
Were these companies uselessly burning money earlier if they can just suddenly become profitable in 6-8 months
*Adjusted EBITDA . General public doesn’t give shit to understand these terms.
^_^
To be fair, it doesn't take that much to become profitable once you have systems in place. Just needs tweaking here and there which may lead to price changes here and there.
People usually avoid it because changing unit economics can have effects on market share and customer retention. If Uber suddenly becomes 100 rupees costlier than Ola because they want to be profitable, customers will opt for Ola more than Uber, which will make the price change actually harmful to their profitability in the longer run if they lose market share.
It's a complex situation to be in.
Bhai unacademy ka naam hata de iss list se. Fraudiya company hai. Can never be profitable.
Plus this is default alive. Once and if (hopefully not) easy money starts flowing in, watch the unit economics regress to older days 🥲
Everyone has traded growth for profitability due to the market conditions. This could have long term impact on market share.
Startups which were loosing hundreds of millions last year are now annocuing PAT and planning for IPOs. What has changed really or were they uselessly burning money
Law of diminishing marginal returns would be the answer here. Companies CAC was greater than LTV and they were spen...
VC funding based on revenue multiples and profit (😂😂😂) multiples is soon going to be obsolete.
Common sense says company's valuation should be summation of yearly profits it can generate till the company exists...
So if relian...
After 16 years of existence should we still call Flipkart a startup?
