Info Edge cofounder Sanjeev Bikhchandani has 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.
“After 2022, market correction, while technically loss making companies can go public. I am doubtful about how receptive 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 said during a conference call for Info Edge’s announcement of its third-quarter financials.
Bikhchandani added that the increase in the share prices of portfolio companies like Policybazaar and Zomato over the past 6-12 months aligns with improvements in the companies’ bottom lines.
Bikhchandani’s Info Edge was among the first investors in both Zomato and Policybazaar. Both the companies now hold dominant positions in their respective fields.
Shares of foodtech major Zomato jumped as much as 6.2% during the intraday trading on February 12 to touch a fresh 52-week high at INR 158.7 on the BSE. The company reported its third straight profitable quarter last week.
PB Fintech, the parent company of insurtech platform Policybazaar, turned profitable in the December quarter (Q3) of FY24. The company reported a profit after tax (PAT) of INR 37.2 Cr during the quarter under review.
