26 July 2024
The difference between a profitable startup getting listed vs loss making startup is huge.
Once you set up the stout engine of a company, it is difficult to change the direction.
The difference between a profitable vs loss making company is the loyal customers. Even a thin wafer margin of profit means customers are willing to pay the business for their product/services.
This is completely different for a loss making company as once you start selling things on cashbacks/discounts, it is difficult to sell items on full prices. In fact, it would be interesting to see how many customers will stick and find value in the services of the company when they offer their services/products with margins.
This is why companies such as Nykaa, Ixigo will be rated and treated differently from the other start ups like Paytm, Pharmeasy and many more.