TFIPOST हिन्दी
TFIPOST Global
Tfipost.com
Tfipost.com
No Result
View All Result
  • Premium
  • Politics
    • All
    • Analysis
    • Opinions
    • Trending
    death anniversary of shyama prasad mukherjee

    From Sacrifice to Sovereignty: How Modi’s India Is Realizing Shyama Prasad Mukherjee’s Vision

    FATF’s Rare Public Censure of Pahalgam Attack Strengthens India’s Case Against Pakistan

    FATF Flags India’s 2020 Seizure of Missile-Bound Tech Headed for Pakistan

    Kejriwal’s Delhi Debacle: From Dominance to Defeat

    Arvind Kejriwal Eyes Rajya Sabha Entry After AAP’s Ludhiana By-poll Win

    SCO Summit: Ajit Doval to Corner Pakistan, Gauge China’s Stance

    SCO Summit: Ajit Doval to Corner Pakistan, Gauge China’s Stance

    • Analysis
    • Opinions
    • Trending
  • Economy
    • All
    • Business
    • Economy1
    • Finance
    US-Iran Tensions Shake Global Markets

    US-Iran Tensions Shake Global Markets; Oil Prices Surge and Safe-Haven Assets Rise

    What Is a Demat Account? Use It With an Online SIP Calculator to Maximize Returns

    What Is a Demat Account? Use It With an Online SIP Calculator to Maximize Returns

    India Makes Global Strides in QS Rankings 2026 with Record 54 Institutions

    India’s Education Sector Makes Global Strides in QS Rankings 2026 with Record 54 Institutions

    Get Insurance: Secure your Tomorrow with Confidence

    Get Insurance: Secure your Tomorrow with Confidence

    • Business
    • Finance
  • Defense
    • All
    • Defence
    • Strategy
    • Weaponry
    ICRA’s analysis highlights that defence companies are benefitting from strong execution progress

    India’s Defense Sector Set for 15–17% Growth in FY26: ICRA Report

    India’s Hypersonic Glide Missile Nears Completion, Says DRDO Chief

    India’s Hypersonic Glide Missile Nears Completion, Says DRDO Chief

    British F-35 Fighter Jet Stranded: Technical Glitch Grounds Stealth Aircraft

    British F-35 Fighter Jet Stranded in India for 4 Days: Technical Glitch Grounds Stealth Aircraft

    reliance infrastructure in strategic partnership

    Reliance Infrastructure and Dassault Aviation Expand Falcon Jet Manufacturing to India

    • Defence
    • Strategy
    • Weaponry
  • Geopolitics
    • All
    • Africa
    • Americas
    • Asia Pacific
    • Europe
    • South Asia
    • West Asia
    FATF’s Rare Public Censure of Pahalgam Attack Strengthens India’s Case Against Pakistan

    FATF Flags India’s 2020 Seizure of Missile-Bound Tech Headed for Pakistan

    SCO Summit: Ajit Doval to Corner Pakistan, Gauge China’s Stance

    SCO Summit: Ajit Doval to Corner Pakistan, Gauge China’s Stance

    Trump Enters Iran-Israel War Without an Exit Plan: Escalation Risks Global Fallout

    Trump Enters Iran-Israel War Without an Exit Plan: Escalation Risks Global Fallout

    PM Modi's visit may propel for India-Canada FTA

    Indian and Canada Keen to Get Over the Khalistan Issue and Reinvigorate Bilateral Ties

    • Africa
    • Americas
    • Asia Pacific
    • Europe
    • South Asia
    • West Asia
  • Knowledge
    • All
    • Culture
    • Education
    • History
    • Indology
    death anniversary of shyama prasad mukherjee

    From Sacrifice to Sovereignty: How Modi’s India Is Realizing Shyama Prasad Mukherjee’s Vision

    Rohith Vemula Bill Sparks Outrage Over Flawed Premise and Vote-Bank Politics

    Karnataka’s Rohith Vemula Bill Sparks Outrage Over Flawed Premise and Vote-Bank Politics

    Kamakhya Devi Temple- Ambubachi Mela

    Where the Goddess Bleeds: Inside the Sacred Mysteries of Kamakhya Temple

    Yoga as India's soft power

    As the World Bends, India Leads: Yoga Day and the Quiet Strength of Soft Power

    • Culture
    • History
    • Indology
  • Law
  • Lounge
    • All
    • Books
    • Cinema
    • Entertainment
    • Food
    • Games
    • Health
    • Lifestyle
    • Satire
    • Sports
    • technology
    • Travel
    mistakes to avoid during yoga

    6 Common Yoga Mistakes to Avoid for a Better Practice

    Yoga as India's soft power

    As the World Bends, India Leads: Yoga Day and the Quiet Strength of Soft Power

    Troubleshooting LED Power Supply Issues: A Step-by-Step Guide

    Troubleshooting LED Power Supply Issues: A Step-by-Step Guide

    Lenacapavir becomes first FDA-approved HIV preventive drug

    FDA Approves First Twice-Yearly HIV Prevention Shot: Lenacapavir

    • Books
    • Cinema
    • Food
    • Health
    • Sports
    • technology
    • Travel
    • Satire
Tfipost.com
  • Premium
  • Politics
    • All
    • Analysis
    • Opinions
    • Trending
    death anniversary of shyama prasad mukherjee

    From Sacrifice to Sovereignty: How Modi’s India Is Realizing Shyama Prasad Mukherjee’s Vision

    FATF’s Rare Public Censure of Pahalgam Attack Strengthens India’s Case Against Pakistan

    FATF Flags India’s 2020 Seizure of Missile-Bound Tech Headed for Pakistan

    Kejriwal’s Delhi Debacle: From Dominance to Defeat

    Arvind Kejriwal Eyes Rajya Sabha Entry After AAP’s Ludhiana By-poll Win

    SCO Summit: Ajit Doval to Corner Pakistan, Gauge China’s Stance

    SCO Summit: Ajit Doval to Corner Pakistan, Gauge China’s Stance

    • Analysis
    • Opinions
    • Trending
  • Economy
    • All
    • Business
    • Economy1
    • Finance
    US-Iran Tensions Shake Global Markets

    US-Iran Tensions Shake Global Markets; Oil Prices Surge and Safe-Haven Assets Rise

    What Is a Demat Account? Use It With an Online SIP Calculator to Maximize Returns

    What Is a Demat Account? Use It With an Online SIP Calculator to Maximize Returns

    India Makes Global Strides in QS Rankings 2026 with Record 54 Institutions

    India’s Education Sector Makes Global Strides in QS Rankings 2026 with Record 54 Institutions

    Get Insurance: Secure your Tomorrow with Confidence

    Get Insurance: Secure your Tomorrow with Confidence

    • Business
    • Finance
  • Defense
    • All
    • Defence
    • Strategy
    • Weaponry
    ICRA’s analysis highlights that defence companies are benefitting from strong execution progress

    India’s Defense Sector Set for 15–17% Growth in FY26: ICRA Report

    India’s Hypersonic Glide Missile Nears Completion, Says DRDO Chief

    India’s Hypersonic Glide Missile Nears Completion, Says DRDO Chief

    British F-35 Fighter Jet Stranded: Technical Glitch Grounds Stealth Aircraft

    British F-35 Fighter Jet Stranded in India for 4 Days: Technical Glitch Grounds Stealth Aircraft

    reliance infrastructure in strategic partnership

    Reliance Infrastructure and Dassault Aviation Expand Falcon Jet Manufacturing to India

    • Defence
    • Strategy
    • Weaponry
  • Geopolitics
    • All
    • Africa
    • Americas
    • Asia Pacific
    • Europe
    • South Asia
    • West Asia
    FATF’s Rare Public Censure of Pahalgam Attack Strengthens India’s Case Against Pakistan

    FATF Flags India’s 2020 Seizure of Missile-Bound Tech Headed for Pakistan

    SCO Summit: Ajit Doval to Corner Pakistan, Gauge China’s Stance

    SCO Summit: Ajit Doval to Corner Pakistan, Gauge China’s Stance

    Trump Enters Iran-Israel War Without an Exit Plan: Escalation Risks Global Fallout

    Trump Enters Iran-Israel War Without an Exit Plan: Escalation Risks Global Fallout

    PM Modi's visit may propel for India-Canada FTA

    Indian and Canada Keen to Get Over the Khalistan Issue and Reinvigorate Bilateral Ties

    • Africa
    • Americas
    • Asia Pacific
    • Europe
    • South Asia
    • West Asia
  • Knowledge
    • All
    • Culture
    • Education
    • History
    • Indology
    death anniversary of shyama prasad mukherjee

    From Sacrifice to Sovereignty: How Modi’s India Is Realizing Shyama Prasad Mukherjee’s Vision

    Rohith Vemula Bill Sparks Outrage Over Flawed Premise and Vote-Bank Politics

    Karnataka’s Rohith Vemula Bill Sparks Outrage Over Flawed Premise and Vote-Bank Politics

    Kamakhya Devi Temple- Ambubachi Mela

    Where the Goddess Bleeds: Inside the Sacred Mysteries of Kamakhya Temple

    Yoga as India's soft power

    As the World Bends, India Leads: Yoga Day and the Quiet Strength of Soft Power

    • Culture
    • History
    • Indology
  • Law
  • Lounge
    • All
    • Books
    • Cinema
    • Entertainment
    • Food
    • Games
    • Health
    • Lifestyle
    • Satire
    • Sports
    • technology
    • Travel
    mistakes to avoid during yoga

    6 Common Yoga Mistakes to Avoid for a Better Practice

    Yoga as India's soft power

    As the World Bends, India Leads: Yoga Day and the Quiet Strength of Soft Power

    Troubleshooting LED Power Supply Issues: A Step-by-Step Guide

    Troubleshooting LED Power Supply Issues: A Step-by-Step Guide

    Lenacapavir becomes first FDA-approved HIV preventive drug

    FDA Approves First Twice-Yearly HIV Prevention Shot: Lenacapavir

    • Books
    • Cinema
    • Food
    • Health
    • Sports
    • technology
    • Travel
    • Satire
No Result
View All Result
Tfipost.com
Tfipost.com
No Result
View All Result
  • Premium
  • Politics
  • Economy
  • Defense
  • Geopolitics
  • Knowledge
  • Law
  • Lounge

Lessons from Paytm and Zomato: Never invest in companies that don’t make profits

TFI Desk by TFI Desk
17 February 2022
in Economy
Lessons from Paytm and Zomato: Never invest in companies that don’t make profits
Share on FacebookShare on X

The share price of startups listed in the last year has tanked in the last few weeks. Companies like Nykaa, Zomato, Paytm, which witnessed a mad rush during the IPOs, are getting investors – neither retail nor institutional. Especially the loss-making Startups which issued shares at premium prices through IPOs have witnessed bloodbaths at Dalal Street.

RelatedPosts

What are the benefits of buying Bitcoin with Apple Pay or Google Pay?

Why is Zomato’s post on X getting trolled?

Zomato’s Caravan Towards India’s Taste, “Pure Veg” is it?

Load More

Paytm’s valuation is down by more than 45% from the listing prices. The path to the profitability of Vijay Shekhar Sharma’s company remains unclear, thus making investors wary. Paytm competes in a highly crowded UPI market led by MNCs with endless access to capital, and the other products of the company are not succeeding. 

PhonePe and Google Pay together had around 80 per cent share of the UPI transactions in September 2021. PhonePe had the greatest number of UPI transactions in September 2021 (1,653.19 million), followed by Google Pay (1,294.56 million) and Paytm (462.71 million).

In its 11th year of operation, the company is still a loss-making company. In FY21, when the use of digital wallets and mobile payments surged, the company posted a decline in revenues. Despite a 60 per cent cut in marketing and promotional expenses, the losses continued, and the road to profitability is unclear.

Similarly, Zomato is trading at a price around 30% lower than the issue price. As reported by TFI, Zomato rode the hype train with inflated valuations and managed to bag a lucrative IPO listing. However, even today, observing the food aggregator’s numbers, one would argue it is just a big bubble waiting to burst and go even lower than today’s prices.

Never invest in loss-making Startups, especially for retail investors:

The lesson to learn here, especially for retail investors, is never to invest in loss-making companies. The investor will not get any dividend on investment in loss-making companies, and there are high chances that the share price will tank after a few months, like in the case of Paytm and Zomato.

There is no denying the fact that despite being loss-making companies with no hopes of breaking even in the coming two three years, Zomato and Paytm rode the hype train with inflated valuations. At the time of the Zomato IPO, a Twitter user and investor named Anurag Singh posted a detailed and nuanced thread dissecting the reality of the bubble of the Zomato IPO which even ignited the curiosity of ‘Know nothing’ investors – a term coined by Warren Buffet.

The user pointed out that the current valuation of Zomato is Rs 66,000 crore or $ 8.8 BN USD. However, a year ago, when the pandemic had not struck the world, the food major’s valuation was $ 3.5 billion and that too after acquiring Uber Eats and its India services. It is imperative to note that Uber Eats has a 9.1 per cent stake in Zomato currently.

However, what appears rather quizzical is the fact that in a pandemic year when the average delivery order value fell from Rs 400 odd to Rs 238, the company managed to scale its valuation manifolds.

Startup Culture and retail-investing:

India has built a great startup culture in the last few years and new businesses are bringing efficiency, employment, wealth creation, and disruption. However, this system of going to IPO to return the original investor’s money amid the hype and rising number of retail investors, it is advisable to the people to not put their hard-earned money on such risky bets.

Tags: Google PayIPOPayTmPhonePeUnicornsZomato
ShareTweetSend
Previous Post

It’s time for Kohli to retire gracefully or prove everyone wrong

Next Post

When and how did brands start mattering more to the world than quality?

Related Posts

US-Iran Tensions Shake Global Markets
Economy

US-Iran Tensions Shake Global Markets; Oil Prices Surge and Safe-Haven Assets Rise

23 June 2025

A fresh wave of geopolitical tensions in the Middle East sparked by recent U.S. military strikes on Iran has...

What Is a Demat Account? Use It With an Online SIP Calculator to Maximize Returns
Finance

What Is a Demat Account? Use It With an Online SIP Calculator to Maximize Returns

22 June 2025

Most people in India are now seeking intelligent means of investing their money. Perhaps the most common and reliable...

India Makes Global Strides in QS Rankings 2026 with Record 54 Institutions
Economy

India’s Education Sector Makes Global Strides in QS Rankings 2026 with Record 54 Institutions

19 June 2025

India’s higher education sector has achieved a significant milestone with 54 institutions featured in the QS World University Rankings...

Load More

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

I agree to the Terms of use and Privacy Policy.
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

Currently Playing

Amarnath yatra 2025 explained: history, logistics and security

Amarnath yatra 2025 explained: history, logistics and security

00:06:47

when the God leaves the temple to be with his devotees.

00:05:31

R.P. Singh Exposes AAP: Following Indira's Model of Separatist Appeasement?

00:11:04

kamakhya Devi and the Power of Menstruation: Ambubachi Mela Explained.

00:04:47

From love to murder- how five plots took down raja raghuvanshi

00:04:38
Facebook Twitter Instagram Youtube
tfipostTfipost.com
Right Wing | News Analysis | Indian Opinion
  • About us
  • Careers
  • Brand Partnerships
  • Terms of use
  • Privacy Policy
  • Sitemap

©2025 TFI Media Private Limited

No Result
View All Result
  • Premium
  • Politics
    • Analysis
    • Opinions
    • Trending
  • Economy
    • Business
    • Finance
  • Defense
    • Defence
    • Strategy
    • Weaponry
  • Geopolitics
    • Africa
    • Americas
    • Asia Pacific
    • Europe
    • South Asia
    • West Asia
  • Knowledge
    • Culture
    • History
    • Indology
  • Law
  • Lounge
    • Books
    • Cinema
    • Food
    • Health
    • Sports
    • technology
    • Travel
    • Satire
TFIPOST हिन्दी
TFIPOST Global

©2025 TFI Media Private Limited