Why Startups lose Crores of Rupees? #startup

Why do Startups Lose Money?

No startup or investor wants to lose money, but it seems that startups focusing on growth do lose money initially.

It's fine as long as there is a path to profitability.

Choosing not to be profitable in favor of growth is now a strategy as long as large profits can be anticipated in the future.

This can be seen in US tech companies like Amazon and Meta, who burnt investors' money in the initial days but now make billions of dollars in profit every year.

Same will be seen in Indian startups few years down the line as they mature and take control of their respective markets.

#amazon #marketing #business #money #startup #entrepreneurship #company #enterprise #indianstartups #india #funding #unicorn #investing #founder #wealth #motivation #businessideas #success

[ashishsonihere]

It's because Amazon has multiple revenue streams they've captured every market rapidly, whether it's retail, IT & Infrastructure, Advertising, and Third Party services, as well.

[Your_Wife.s_Boyfriend]

Well, the big difference is Indian customers are very price sensitive and rational while western consumers are driven by hyper consumerism. Burning Cash to grow first is a very tough proposition in any third world country, not just India.

[nitwit]

Unlike west Indian Buyer is not that faithful for a Particular Platform. When you stop giving discounts or offers the buyer will simply switch to his regular old marketplace or other platform. So this whole growth at the cost of profit will not last that long. Also Most Indian Startup Founders just want to play this valuation game. They are not interested in building solid Businesses

[ZvenoBlox]

It takes years of patience to make a company stable and profitable

[superpulsar]

Doesn’t Amazon makes most of its money from AWS

[timodele]

The shortest and most succinct explanation for startup funding.

[buriburizaimon]

People really be jobless and hate others who are trying to create something in their life

[arindamhazra]

condition : only if you have multiple revenue stream

[DhrumilDoshi]

Same way gpay is free and is burning cash and has a great market share and once it feels it covered the required market even it charges 1 rupee per transaction it is sitting on pile of probably trillion rupees

[Useyourmindandbrain]

Ohh they gamble
Yeah yeah gamble gamble

[nero]

Amazon Retail does make huge revenue but the profit margins are very thin. Bulk of their profits come from AWS.

[manmohansaklani]

True...but that can be done only where companies can create an unfair advantage with scaling...Walmart and Amazon...creating supply chains, physical distribution, white labels etc but it is not applicable for all companies like in edtech .

[tamanna]

Even young Indians nowadays are becoming like those gossipy uncle aunties, uss field kuch pata wata nhi hai ghar me so sokar video dekhenge aur fir gyan chodenge 🤦

[durgaprasad]

As an indian we can simply understand like
As we know by providing free internet jio growed and after marked captured it started charging first it burned money and next they started making profits

[sharath]

Amazon screwed my life and even now they are screwing

[omkarpawar]

Right now only startups that can earn money are educational

[aryanthakur]

or to just pump up the companies valuations . Investors doesnt care about loss if they can get a good exit by selling their shares at higher valuation

[Sana-ikfo]

You forgot to tell... that only 5/100 will suceed... And those that succeed may lose money but is still providing a huge value

[KhaikoChalembaJr-lshi]

Its all about market share, not the instant money /profits🔥

[suryaprakashpareek]

In case of India it don't work every startup have multiple competitors the day when it's starts
Indians use phonepe, paytm, gpay etc and keep multiple option incase of small failure, pricing, service