In every MLM scheme, you need a Product to be marketed where the early participants gains whereas the last entrants lose money and are struck
In case of #Mamaearthipo , the "shampoo" is not the Product but the "Founders" are the Product.
Lets understand the Game!
A thread(1/n)
In case of #Mamaearthipo , the "shampoo" is not the Product but the "Founders" are the Product.
Lets understand the Game!
A thread(1/n)
1. The Startup has raised $126 million ( 1000 Cr ) in 8 rounds to reach at the revenue of 920 Cr.
It is like paying you Rs. 100 to buy their product of Rs. 92
It is like paying you Rs. 100 to buy their product of Rs. 92
2. This game is for the Riches first wherein the early stage investors has to back the Startup to rope in more investors "but at higher Valuations" and it goes on while the Founders keep on paying ( burn cash) to make ppl buy their products to show growth
#Mamaearth
#Mamaearth
3. Soon, the need is to rope in a celebrity Investor like #ShilpaShetty. Her middle class followers will buy products to keep up with revenue growth while her richer class followers will subscribe to funding rounds at higher valuation to keep MLM scheme rolling
#mamaearth
#mamaearth
4. #mamaearth does not have manufacturing of its own
If given 1000 Cr funds and asked to do sales of 920 Cr with 24 Cr profits with 2% profit margin in 6 years, can any local entreprenuer achieve so ?
Yes, but sadly, these local hustlers are not good Story Tellers
If given 1000 Cr funds and asked to do sales of 920 Cr with 24 Cr profits with 2% profit margin in 6 years, can any local entreprenuer achieve so ?
Yes, but sadly, these local hustlers are not good Story Tellers
5. And hence not every Founder qualify to act as Product in this Funding MLM
Check the insta reels of Founders of #mamaearth to learn how well you need to develop skills of Story Telling so that investors choose you as their next product and bet on you
Check the insta reels of Founders of #mamaearth to learn how well you need to develop skills of Story Telling so that investors choose you as their next product and bet on you
6. Now you need a BIG VC to back you and as VCs are answerable to their LPs, they need a good reason to do so
Suddenly the news of Startup turning profitable ( 2% margin) will showup on all paid PR platforms as if thats an unachievable feat for any normal entrepreneur
#mamaearth
Suddenly the news of Startup turning profitable ( 2% margin) will showup on all paid PR platforms as if thats an unachievable feat for any normal entrepreneur
#mamaearth
7. Now when all the rich class realise that they all have been part of MLM; they need #Mamaearthipo to give an Exit to the "blocked" illiquid money of the Riches and spread the losses amongst the poorer masses so "Kisi Ko Pata Nahi Chalega"
8. Even if it is assumed that funding of 400 Cr will take the profits of the Company to 240 Cr and assuming 100% profit to be given as dividend and Startup grows further at inflation rate, it will take a poor investor 100 years ( Val 24000 Cr) to recover his money
#mamaearth
#mamaearth
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