Key Points
"India still remains, for example, for a business like Zomato, a market which is only in a few cities even now..
But because of the fact that there is now at least a path to profitability, there is a reason to assume that they will survive and therefore do reasonably well over a period of time..
The challenge there is quite high because the cost of logistics cannot be brought down beyond a point and the challenge will remain that there is already some amount of pushback from the restaurants and the food suppliers to the margins that they are having to shell out to these companies...
Second, if you assume that there is going to be a focus on cash flow and profitability, how much of the top line growth will have to go because so far or at least till they got into IPO, the focus was on trying to gain more and more market share and build up the top line and not worry too much about the cost of client acquisition...
If you have to look at the banks, especially in the private sector, almost anyone which is of a reasonable quality in terms of technology, will do well in terms of taking market share from some of the public sector banks..
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