Why are all Indian startups in loss?

That’s a drop of around 106\%, as compared to a loss of Rs 423 crore it incurred in FY18. According to VCCEdge, the data research platform of News Corp VCCircle, the loss is due to the rising marketing expenses based on Hike Messenger’s filings with the Registrar of Companies.

How do you value a loss making startup?

The most well-known method for the valuation of start-ups, even the loss-making, is discounted cash flow. The discounted cash flow method is when the cash flow is forecasted by the valuing firm along with an expected rate of investment return.

How do startups get valuation in India?

There are three ways to value startups namely Venture Capitalist method, First Chicago Method, Adjusted discounted cash flow method. Venture Capitalist Method is majorly used by venture capitalist looking for making investments in start-up companies.

What happened to Flipkart India?

And Flipkart India which is the wholesale arm of the online retailer lost over Rs. 2000 crore in that same period. In February 2018, the 10-year-old food tech company Zomato became a unicorn at a valuation of $1.1 billion. The company has reported a loss of around Rs. 2,198 crore for the year ended March 2020.

Is Your Startup losing hundreds of crores of rupees?

Here is a quick list of loss-making startups in India that are valued at a billion dollars but are losing hundreds of crores of rupees every year (some are even losing thousands) and still going strong. Take a look. Flipkart has registered a loss of over Rs. 3,837 crore for the financial year 2018-2019, according to paper.vc.

Which startups in India are making huge losses?

Other prominent startups which are on the verge of entering the billion-dollar club are also making huge losses. Here are two such loss-making companies in India. Grofers: Rs 448 crore in the FY 2019. Vedantu: Rs. 27.31 crore in FY 2019. Moglix: Rs. 48.08 crore in FY 2019.

Is Flipkart’s loss a cause for concern?

While it is still a very healthy growth, losses remain a key cause of concern,” said Satish Meena, senior analyst at Forrester Research, had said in November when the financials had been released. However, Flipkart’s parent company, Flipkart Internet, reported a 40\% increase in its losses with INR 1,624 Cr for FY 2018-19.