Skip to main content

Posts

Why Nykaa will stand out ?

The floodgate for New Age Technology Company IPOs was opened by Zomato Ltd. So much so, there was no dearth of capital/cash flow required to fill in for the IPOs rather it was the lack of quality or number in terms of merchant bankers and distribution networks for managing the IPOs. Zomato Ltd. is pioneer in this space for taking the risk, for being the first one to build a book for IPO for a loss making entity. Zomato still stands from others in a rather peculiar way (will talk about it another piece). Exactly after its successful listing, the floodgates opened. Compounded by the liquidity in the international markets, and dearth of investing products in India, especially with the dwindling rates of debt market products. After Zomato, CarTrade, Nykaa, Paytm, PB Fintech, the list goes on and on. So much so that Nykaa’s peak valuation ($ 14.8 Billion) exceeded the total industry size ($ 13.50 Billion) of cosmetics market in India. It’s not the case that cosmetic industry is doubling eve...
Post a Comment
Read more
Recent posts

OYO Rooms - Road to Profits

OYO Rooms – Road to Profits We are carrying forward from our previous post of B2B v/s B2C and the correlation of the two business models. Coming back to the Indian Unicorns, which are largely operating in B2C space and with losses and losses and piling up and investors valuations going up, who minds that when nobody is hurting. Especially when they know that scared sharks like Walmart will come and buy Unicorns and make everyone happy. Whether the founders or the investors had built a vision or roadmap to make profits for Flipkart. In VC world, all roads lead to cash out.  B2C companies will continue to bleed in the Indian context, where the consumer is so nimble that he switches the loyalty the moment he finds better/cheaper price. B2B is the way to make profits. E-Comm portals are planning to enter/launch their own brands and taking cue from Kishore Biyani, better known as Retail King in India, who has launched his own labels to make better margins as compared t...
Post a Comment
Read more

Consumer v/s Customer

Google became the centerpiece of the Internet world, toppling Microsoft from its position, which was the centerpiece of the Software world. By and large, the axis had only shifted from computer (software) to internet so hence there had to be new winner. Google and its parent Alphabet may be doing a lot of things in the world and yet again trying to change the world but none of the acquired products can be as big as the products developed on your own. In Google’s case, it was the SEARCH, which made it the champion in the Internet world. After Internet, Smartphone became the centre of the axis of the puzzlery of the emerging tech world, the grounds of which have to shift every decade or so. Somehow or the other, Amazon has become the centre of it. Even though neither they had built the software or the hardware of the smartphone or perhaps the network, which ultimately runs the smartphone. But then more searches are run on Amazon than on Google, when the heir apparent is challenge...
Post a Comment
Read more

B2C is Valuation, B2B is Profit

A lot of VC funds who operate in India have raised money for investing in the B2C space. B2C companies are the ones, which are valued in figures that we often forget how many zeros placed and how many more to be placed. Unicorns are built by the over enthusiastic investors, who love the zeros and help B2C companies to engage with customers over and over again. India is a ripe market due to 1.25 Billion breathing on small land mass. Before we understand the nomenclature of some of the US based Unicorns, who really possess the next level of technology and are able to build an industry on their own. Let’s look at the Indian Unicorns. Some of them are indeed a masterpiece inspite of having shoddy pieces of technology, they are unicorns. Flipkart Paytm Ola Cabs Hike ShopClues Zomato InMobi Quikr Oyo Rooms MakemyTrip Few seated on the borderline or waiting in line: BigBasket Byju’s Swiggy Practo Delhivery Rivigo Blackbuck Freshworks Nysaa ...
Post a Comment
Read more