While I'm proud of these two revolutionising the quick commerce space, I somehow have a bad feeling about this
Profits aren't coming, money is flowing Don't know what the VCs are seeking? Why bake a a pie that you can't eat later?
Won't the founders be diluted like crazy by now, they have to be easily below 50% by now. In their initial fund raise also I remember they gave away quite a bit of equity.
They'll have to pivot soon. When Meesho started as a reselling business they were valued at $5b. Then they shutdown their offices in Indonesia and pivotted to full-scale ecommerce in India Now, they're doing ok but the initial idea of Meesho being a reselling company is gone. But still the company is doing well and making money.
Zepto is now in the same bucket. Their only pull right now is quick commerce. They'll have to pivot soon with all the cash they have. If they do they'll survive.
Or maybe expand to different sectors.
Amazon did, has payment gateway, video services etc. Too many random stuff but something that cuts through the losses
One thing I would like to see is Zepto expanding to tier 2 & 3 cities. I know it's not feasible for a business but I would like to see them try with all this new cashflow. Swiggy and Zomato did that and they are doing just fine.
Do you have an explanation for Walmart pouring in more monies in Flipkart?
I see Qcomm as a good replacement of general trade players. They have started pivoting to dark store franchisee model, making themselves asset light and focusing on distribution-execution. I feel after Zomato acquired Blinkit, this whole space is seeing new execution energy. Zepto imitated some of the Blinkit practices, categories.
One of the biggest investments regret I’ve is - when I referred Delivery Hero unit economics while researching on Zomato. The fundamental difference is - 1) Unit economics is very different 2) Customer behaviour and aggregation
Agree with your points but cannot compare Walmart here. Parent company vs VC isn't the discussion. It has 51% stake, it can make break Flipkart. Plus it is an brand trying to expand in India, has cash to burn.
QC is booming, but economics added up when?
They can take more money, say expand to Tier 2 cities as well. Will never get a penny more than spent
Investment is an Investment, VCs have to more concerned about returns as they have to give money back. I took flipkart as an example as they are also looking into Qcomm space in India (definitely with parent company aligned).
QCs are claiming EBITDA positive, even if they aren’t today, the way new high AoV categories are being explored, day isn’t far. FP observed from sidelines and jumped into the bandwagon.
Okay wait I just processed this. $400Mn a week after raising $665Mn. Valuation jump from $3.6Bn to $4.6Bn. That's a lot of things altogether.
Hmm. Not sure what to make of this. Blinkit is valued at $12-13Bn. So...
Blinkit has been in the industry for 10+ years now, their valuation has consistently grown, they are doing even better after acquistion by Zomato.
But this is something else.
Could be PR too. Forcing the VC on signing the term sheets because now news is out
@BiryaniEnthu It's not about how many years they've been around Valuation would be based on revenue scale, growth, economics - amongst other things Zepto's scale isn't 1/3rd that of BlinkIt (it's closer), their economics should structurally not be that screwed, and I imagine their growth is better
So if I compare to Blinkit's valuation, maybe Zepto can justify
I have evaluated a lot of startups as part of my work. My approach has changed from being optimistic to being suspicious of a lot of founders, even before the process starts.
The sheer number of founders that I come across that try t...
Some three dudes on Twitter launched an app swish in HSR. This is getting out of hand now, do we really need chai to be delivered in 10 minutes?
saw some of the tweets posting about how they got delivery in 10-min. I think we are lackin...
What have they done right in their journey that they are moving too fast.
