Have you noticed yet that the offers, discounts, and cash-backs on your favourite apps are starting to dry up?
Pay attention next time you place an order. And brace up for lesser pampering from these apps in the months to come.
Of India's 100+ unicorns, less than a fifth are profitable. Most others have been draining money by literally 'buying' their revenues and customers through freebies and discounts.
So far, they could afford to do so due to the backing of strong investors.
Much of that is set to change now.
The funding from investors that has enabled these companies to sustain such losses - in many cases more than the revenue they generate - is disappearing, fast.
Consider this: in Q3 of 2022, PE/VC investments in India declined by over 60% compared to the same quarter last year.
It's not that investors have suddenly become bearish on India.
It's because money is not as easily available to them anymore as it has been over the past decade.
Globally, the era of cheap money seems to be over.
Blame rising inflation and interest rates for that. Why they are rising is a story for another day.
For now, just know that our unicorns and soonicorns will need to do all they can to cut down their losses. Because there aren't too many investors out there to fund these losses by putting in another round of investment.
Till funding comes back stronger, it's your offers and discounts - and in some cases jobs, if you are their employee - that will be the victim.
Buckle up!
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