Its hard to arrive at a valuation of loss making companies. Here, we tried to arrive at valuation for one such company with lots of assumptions.
Couple of questions:
1. What do you think of the number of food delivery orders increasing as the disposable incomes rise?
2. What about the fact that the middle-class is increasing in size- how fast do you see the 1.7 cr families increasing in size?
On the quick delivery of groceries business- I think there will be consolidation in the segment and that is when either Zomato will sell out and hopefully earn cash; or be an acquirer to turn Blinkit into a profit making entity.
A high risk investment if one were to make it, but may work out in the long term as people look to outsource day to day activities.
Very good article. keep it up.. I agree that InfoEdge is a much much better investment opportunity than Zomato.
Very detailed explanation sir, thankyou very much for writing, I loved it...
Very nicely explained, Thank you Sir. Sir, how we can contact you?