[{"id":"75f6b2b6","elType":"container","settings":[],"elements":[{"id":"6f14af56","elType":"widget","settings":{"editor":"<p><strong>Why Are Startup Valuations So High? The Case of Zomato and Growth-Driven Valuations<\/strong><\/p>"},"elements":[],"widgetType":"text-editor"}],"isInner":false},{"id":"05b591a","elType":"container","settings":{"flex_direction":"row"},"elements":[{"id":"ac0fe5b","elType":"widget","settings":{"editor":"<p class=\"res_mb0\">Startup valuations often spark debates. \"Mind-numbing,\" \"unrealistic,\" and \"without any base\" are common reactions in social circles and among traditional business owners. But as a corporate finance professional, let me break it down\u2014and I\u2019ll use Zomato, one of India\u2019s most celebrated unicorns, to explain why these valuations make sense.<\/p>"},"elements":[],"widgetType":"text-editor"}],"isInner":false},{"id":"951370c","elType":"container","settings":{"flex_direction":"column"},"elements":[{"id":"185e414","elType":"widget","settings":{"title":"1. The Scale of Growth Opportunity","header_size":"h5"},"elements":[],"widgetType":"heading"}],"isInner":false},{"id":"39bac34","elType":"container","settings":{"flex_direction":"row"},"elements":[{"id":"96283bf","elType":"widget","settings":{"editor":"<p>Startups like Zomato operate in markets with huge untapped potential. When Zomato started as a food delivery platform, it wasn\u2019t just about delivering meals\u2014it was about reshaping an entire ecosystem. It leveraged the rapid rise of internet penetration, smartphone adoption, and changing consumer habits.<\/p>\n<p><b> Example:<\/b> Zomato went from being a simple restaurant directory in 2008 to one of the most recognized food delivery platforms globally by 2021. The growth potential in such markets justifies the premium valuation.<\/p>\n<p>Compare this to traditional brick-and-mortar businesses\u2014expanding a physical store network or logistics-heavy operation is capital-intensive and time-consuming. A single Zomato app update could scale to millions of users overnight.<\/p>"},"elements":[],"widgetType":"text-editor"}],"isInner":false},{"id":"519671c","elType":"container","settings":{"flex_direction":"column"},"elements":[{"id":"2558edc","elType":"widget","settings":{"title":"2. Scalability vs. Physical Constraints","header_size":"h5"},"elements":[],"widgetType":"heading"}],"isInner":false},{"id":"a4ffb8a","elType":"container","settings":{"flex_direction":"column"},"elements":[{"id":"e266504","elType":"widget","settings":{"editor":"<p class=\"aos-init aos-animate\" data-aos=\"fade-up\" data-aos-duration=\"1800\" data-aos-easing=\"ease-out-cubic\">Startups in the tech and platform space often have near zero marginal costs for scaling. Zomato doesn\u2019t need to build physical restaurants or own delivery vehicles. Instead, it uses technology to connect consumers and service providers seamlessly.<\/p>\n<p class=\"aos-init aos-animate\" data-aos=\"fade-up\" data-aos-duration=\"1800\" data-aos-easing=\"ease-out-cubic\">\u2022 A brick-and-mortar business expanding to new cities would need real estate, infrastructure, and people. Startups scale much faster because their <b>operating model is designed for exponential growth,<\/b> not linear expansion.<\/p>"},"elements":[],"widgetType":"text-editor"}],"isInner":false}]