Several Founders, Co-Founders, CXO Bankers, CXO Fintech professionals & people who participated in the ePanel discussions:
- Mr. Ruchir Inamdar, Head of Business Development, Repute
- Mr. Abhishek Arun, Chief Operating Officer, Paytm Payments Bank
- Mr. Taron Mohan, Owner, NextGen Telesolutions Pvt Ltd
- Mr. Rukmani K Narayan, VP Internal Audit, Equitas Small Finance Bank
- Mr. Abhishek Mody, Vice President, M2P Fintech
- Mr. Vikas R Panditrao, Co-Founder, Forum of Industry and Academic Knowledge Sharing (FIAKS)
- Many other CEO/CXO Bankers & Fintech professionals on FIAKS Forum requested to remain anonymous
Zomato – a name that gained popularity amongst the youth and then quickly followed by the middle-aged population as well. Of late there’s been a lot of buzz regarding Zomato IPO hitting the market. The 9,375 crore offer has been oversubscribed And then after the success of this IPO, it became the first of Indian unicorns to be publicly listed on stock exchanges. Amidst all this, here’s a tweet that took a dig at Zomato
This is the modern disruption. They got the VCs to invest in their business plans and would be transferring the “funding” to the public. Here are the set of questions raised by the community
Would Zomato sustain in long term?
- In spite of being a loss-making business and Zomato itself has not hidden this point and claimed that it has never made profits, investors seemed to show a lot of faith in the business model.
- With this pandemic, Zomato just boomed up sky high with people being used to food being delivered at their doorsteps. But what if after the pandemic consumer behavior changes and people just want to move out and eat as already seen people no longer want to stay more at home, and consumer behavior is never constant it depends on a lot of factors and keeps on changing. A point that needs to be pondered upon!
Does it Sound like another Ponzi scheme?
- Look carefully at the offer for sale wherein funds are raised by the company by allowing existing investors to exit. At each round of funding one set of investors exit, and are replaced by another, and another. It does not matter whether the company is in the black or not money is made by each set. The problem is the last set of investors could be left stranded.
Well here, some came out strong in favor of Zomato;
- Whether we believe in what Zomato has built over these years or not, this is such a low blow. Should people start calling out these Indian business moguls for their corruption by calling 40% discount coupons to political and administrative bribes? Pure jealousy!
- Nobody is compelling anyone to order through Zomato or subscribe to their IPOs. The self-inflicted loss whether as a long-term strategy or purely due to market conditions is no reason for this ridiculously inept comment.
- Bet even if Mr. Goenka tries, he will not be able to aggressively do cashback and still be able to retain customers, one-time usage is different from stickiness/cohorts which work. Member mentions, “Would love if he starts cashback and create a tech stack for Ceat and beat everyone in the market or get people to replace tyres earlier or tell me when should I change my tyres for my car- help me order online and get it delivered and installed at my place. Shut the physical channel. He must start a successful startup aggregator if he wants to prove himself.”
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