https://www.desidime.com/comments/permalink/10104381
Just like Honasa Consumer Limited could show phenomenal growth in top line for some of its fake brands, others (mostly start-ups) in sectors the EdTech, FinTech too have done so.
But the investors and promoters play a game of deceit. Burn-rates are often not disclosed and costs of customer acquisition, customer retention are opaque (to say the least).
Achieving a top-line growth of X% or total topline of ₹N,
by spending ₹N×2½ on marketing, sales, promotions is NOT perpetually feasible.
Initial traction or critical mass can only do so much after a point. Thereafter one has to reduce (if not stop) the bleed. The real test comes at that time.
will the existing investors, VC still want to be hooked or new ones want to enter such a business where those phenomenal growth stories from the past... start tapering?
TL:DR: २५०₹ ka kharcha kar ke १००₹ ka 'galla' (revenue) dikhana utna kathin nahin hai.
But the investors and promoters play a game of deceit. Burn-rates are often not disclosed and costs of customer acquisition, customer retention are opaque (to say the least).
Achieving a top-line growth of X% or total topline of ₹N,
by spending ₹N×2½ on marketing, sales, promotions is NOT perpetually feasible.
Initial traction or critical mass can only do so much after a point. Thereafter one has to reduce (if not stop) the bleed. The real test comes at that time.
will the existing investors, VC still want to be hooked or new ones want to enter such a business where those phenomenal growth stories from the past... start tapering?
TL:DR: २५०₹ ka kharcha kar ke १००₹ ka 'galla' (revenue) dikhana utna kathin nahin hai.
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Youth is investing aggressively in market.