Zomato which is a food delivery and restaurant discovery company, just announced in its financial report that theyβve turned a profit for the third quarter in a rowβmeaning their business hasnβt been in the red but actually making money.
So, what does this mean? Well, in Indiaβs startup world, most companies have been chasing growth and funding like crazy.
Their main goal was always: “Get as many customers as possible, even if it means losing money.” But now, Zomato has shown that even a tech startup can actually be profitable.
What are the experts saying? A lot of them believe Zomatoβs success is a wake-up call for other startups. Investors arenβt just gonna care about “burn rate” (how much cash a companyβs blowing through) anymoreβtheyβll also want to see “earn rate” (how much itβs actually making).
Is this a major shift? Itβll be interesting to see if other unicorns like Flipkart, Paytm, and Swiggy follow in Zomatoβs footsteps. If they do, Indiaβs startup scene could move away from just chasing sky-high valuations and focus on real, sustainable value.
