Who is making profit in Digital India
India is home to 10 unicorns with startups valued at over $1 billion. And, studies shows that the country’s rapidly growing startup ecosystem could produce at least 50 more in the future.
Critics have questioned the business model of India’s largest e-commerce firm, and also its reported $10-billion valuation. For the 2015-16 financial year, Flipkart posted a loss of Rs2,306 crore, though it has been talking about hitting profitability for a while now.
For financial year 2015-16, the online seller made a loss of Rs3,316 crore. In February 2017, the company’s co-founder and CEO, Kunal Bahl, said Snapdeal will turn profitable in two more years.
Hike is a messaging platform with some 100 million users founded by Kavin Mitta. The company is currently valued at $1.4 billion, according to CB Insights, a research firm. Hike hasn’t issued any guidance on its profitability yet.
The firm is the newest entrant to India’s unicorn club. Founded by Sumant Sinha in 2011, RenewPower is an independent power producer which focuses on clean energy. The firm is valued at some $2 billion. It joined the unicorn club in February this year.
The data analytics firm founded by Dheeraj Rajaram has been making profits for three years. It was the first Indian unicorn to hit profitability. For financial year 2015-16, the Bengaluru-based firm posted a profit of Rs462.9 crore
InMobi became the second unicorn after MuSigma to turn profitable, after the company said on April 05 that it made a profit in the fourth quarter of 2016. It follows the calendar year for financial reporting. Although the profit is for just one quarter, the company said it has had positive cash-flows for the last few quarters.
Vijay Shekhar Sharma, founder of Paytm, announced that his company was on its way to profitability by 2017. In 2016 the company posted a net loss of Rs1,549 crore. Paytm’s fortunes have seen a revival, due to the demonetisation. Paytm’s daily transactions have swelled to seven million and the company is today the largest digital wallet service provider in the country.
Uber’s fiercest rival in India, the home grown taxi hailing app had said last November that it will turn profitable in three years. Ola, founded in December 2010, is currently present in over 102 Indian towns and cities with over 500,000 taxis and auto-rickshaws. The company is yet to clarify if it has changed the deadline for profitability.
In October 2016, Sanjay Sethi, co-founder and CEO of Shopclues, said that his company would become India’s first e-commerce firm to become profitable by 2017.However, it never happened.
In February 2016, India’s largest restaurant search portal, Zomato, announced that it was making profits in some of the countries it was present in. However, for fiscal 2016, the Gurugram-based firm made losses of Rs492.3 crore. Launched in 2008, Zomato has received $225 million in funding so far.