?? Unicorn margins
“There’s no point driving fast if you don’t know where you’re going,” Sahil Barua, the founder and CEO of logistics unicorn Delhivery, said in an earnings call on Saturday. He summed up the mindset of tech leaders, whose primary focus now is margins, not aggressive growth.
Listed Delhivery turned adjusted EBITDA positive (Rs 6 crore) in the fourth quarter of FY23. Its revenues, however, fell for the second consecutive three-month period.?
Deepinder Goyal of Zomato, also a public company, stated in his letter to shareholders on Friday that improving margins was a key priority. He added that he was 9/10 confident of achieving profitability for the entire business within the next four quarters.
Just a day earlier, rival Swiggy revealed its food-delivery arm had become profitable (adjusted, of course).
The tech game is now effectively a margins game amid an extended funding winter and macroeconomic stress. After reducing costs, including marketing budgets and payroll over the past year, companies are trying to get more value or revenue from their target audience. As a result, pricing models have been revised.
Amazon announced last week that it was raising commissions charged from sellers, which analysts linked to a focus on strengthening P&L.?
So, if you are a startup founder renegotiating with clients and making tough choices, you are not alone.
The Arc covered the most important themes and developments in the tech landscape throughout the week. Here are the top three:
Last thing: Here is Amazon's report card
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