Last month, @sumanthr wrote that Zomato’s management & investors could be hoping for an IPO valuation higher than that of the last private funding round & will eventually get it to the coveted decacorn valuation milestone of $10 billion.
🧵#Thread
the-ken.com/story/the-non-…
🧵#Thread
the-ken.com/story/the-non-…
Zomato's IPO is lined up for this week.
While it may see high valuations and profits in the listing phase, its journey to profitable gains, in the long run, is not without hurdles.
While it may see high valuations and profits in the listing phase, its journey to profitable gains, in the long run, is not without hurdles.
Unlike private markets, the public market values companies on numbers rather than narratives.
Metrics around profitability, growth, and free cash flows are critical. These aren’t necessarily Zomato’s greatest strengths.
Metrics around profitability, growth, and free cash flows are critical. These aren’t necessarily Zomato’s greatest strengths.
Zomato was keen to sell the narrative that, like its US peer DoorDash, which had a successful listing in December 2020, the pandemic had served as rocket fuel for its business.
But do the numbers back this narrative?
But do the numbers back this narrative?
So what do the numbers actually tell us? Where does Zomato stand with regard to profitability and growth metrics? What are the other challenges for Zomato around its public listing?
We've made the story free for you to find out: the-ken.com/story/the-non-…
#TheKenFreeStoryofTheDay
We've made the story free for you to find out: the-ken.com/story/the-non-…
#TheKenFreeStoryofTheDay
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