The darling of Indian Startup is Quikr. Quikr dashed in Indian start mentioned segment with free classified followed by series of acquisition. Quikr acquire car, Job, housing related companies to shore up its portfolio.Many investor jumped into bandwagon to play the valuation game.
Based on the information registered with RoC, Quikr made 550 Cr loss whereas revenue stands at 95 crore.It clearly indicate that Quikr will take ages before they will be profitable or may never achieve the same. Quikr received many awards but it's very confusing that at what parameter they received it.The business model seems not working at all. It is evident that they will on investor money life support for many years to come.
Quikr pointed out their revenue growth which is far better than previous financial year but at the same time accumulated loss is uncontrolled.I won't be surprised that investors money will act as life support jacket for Quikr for many more years.
In my opinion, Quikr business model is nothing but to burn investor money. The business model of any startup should be focused on cash flow, EBITA, revenue stream and alternative revenue stream. Their huge marketing spend to maintain the user growth will further put pressure on company cash burn. Investors must be investing in Quikr post proper assessment but in my point of view, they should also be ready to write down the investment.
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