Our tryst with destiny as Zomato proclaims a new-era in Public Markets
Zomato issue is going to be a success is a given, but will it bear any consequences? The high investor interest in this IPO may have prompted many startups to line up to float IPOs. It is just a matter of time when we will start witnessing the D2C brands going through the same route.
My biggest fear is that public market investors – retail & institutional, won’t understand the business models and ratios that startups use. Multiple fundraising rounds while burning cash is seen as a risky manoeuvre. Public markets still measure boring metrics such as sales, expenses & profit.
Oh, did I mention PROFIT?
Still, as long as the market capitalization pathway goes upwards, they will be up for the journey. From scanned menus’ of restaurants on a static website to Food Delivery App, Zomato has come a long way to keep pace with the changing market trends. A lesson for all D2C brands out there.
What do you think are the metrics that represent startups businesses more accurately?
See you next Friday! Stay Safe! Sleep Well!
// 👋 Forum Shah
100+ D2C brands have raised a total of $1.6bn since 2016.
Brands raise funds for various reasons but most often the main purpose is to scale their business and penetrate niche markets. It can take a while for a company to reach profitability and until then, the business needs some cash to keep going.
Below listed are the top reasons why they raise money
- Enter a market or create multiple sub-brands under the parent brand
- Early-stage brands might be raising funds to help the product development or launch their minimal viable product (MVP)
- The ones who already have a working product and now need customers, raise funds to spend on meaningful marketing campaigns and not just “spray and pray” techniques
Let us look at a few D2C brands today who are making heads turn with their interesting, beautiful, unusual, and novel offerings.
&Stirred:
Tired of spending too much time behind the bar making those simple but better drinks than the ones with Tetra juices and carbonated sodas, Rakesh Sheth – Founder of & Stirred launched the simplest and most convenient way of making perfect cocktails. Anytime, Anywhere. &Stirred offers Cocktail Mix, Mocktail Mix, Rimmers (Unique blend to dress the Rim of your glass) and Cocktail Drops (Flavourful blend of aromatic ingredients)
Arochem:
Established in 1969, Arochem tunes up a symphony of fragrances with rich traditional heritage & modern outlook. They are the perfumer’s with a difference. Arochem has been known for generations as a maker of sophisticated high-quality perfumes. In the past few years, the product range has been expanded to include exquisite fragrances
BarBox:
Bar Box is perfect for amateur mixologist and professional bartenders alike, it has everything you need to concoct a glass of your favourite Cocktail. The outbreak of the pandemic and strict lockdowns transitioned the brand into a problem solver when BAR BOX became the go-to partner of every home bound individual looking for new ways to unwind. They include more than thirty different bartending kits, tools, and cocktail accessories designed for specific occasions and spirits.
Everpret:
Everpret, which loosely translates to ‘forever ready’, is made for the modern workday taking inspiration from the modern, ambitious women. With minimal finishing and a certain sincerity & attention to small details, they believe that a simple bag has the power to change your day! They are certainly on a mission to add versatility & functionality to your workday accessories.
Cards vs Sanskaar:
The quintessential Indian party game, Cards vs Sanskaar is a cocktail of dark jokes and wise-cracks on current affairs – from Society and Politics to Bollywood, you’ll find a bit of our culture in all the cards. 392 cards, professionally printed on 300GSM card paper, coated with fanning powder and lots of love for easy shuffling. Packed in a hard box that can take a beating or two on the wilder nights.
Echt Beauti:
Echt Beauti is India’s very own high end, high quality luxury, all natural cosmetics brand. All their products are 100% cruelty free and are made from ingredients extracted from organically harvested plants. They are made in India and carefully formulated for the Indian skin.
