Doubtful of markets’ reception of loss-making firms without visibility on profits: Sanjeev Bikhchandani

economictimes.indiatimes.com:

Info Edge cofounder Sanjeev Bikhchandani on Tuesday said he is doubtful about how receptive the public markets will be of loss-making companies unless there is a clear visibility on profits in the next year or two.

“I am not sure people will be willing to give valuations that these companies often expect. But I could be wrong,” Bikhchandani told analysts on a conference call for Info Edge’s announcement of its third-quarter financials.

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Bikhchandani added that a rise in the share prices of portfolio companies such as Policybazaar and Zomato over the 6-12 months period had coincided with the companies’ bottom line improvements.

PB Fintech, the parent company of Policybazaar and Paisabazaar, reported its first quarterly profit, joining the ranks of profitable peers such as Nykaa and Zomato during the December quarter. Food and grocery delivery platform Zomato had reported its first ever consolidated net profit in the June quarter last year.

“When there is a shortage of money, you have to break even and I think enough companies are doing that… I have seen at least close to double-digit startups that are breaking even and making money or perhaps getting very close to it, in our own funds,” he said, answering a separate