Finally, aggregator apps are starting to show profits.
Uber turned profitable.
Zomato turned profitable.
Times are changing. Trend reversal perhaps.
Unless the latest results are just an eyewash, interesting times ahead for VCs and founders:
- What seemed like a rosy future 5 years back is already here. Whether it's as rosy as it looked back then or not, I don't know.
- The game now shifts from valuation to profitability. Valuation is mostly an imaginary number based on narrative, vetted by bankers who work on commission. Profits are a real metric based on the health of the business, vetted by rule-abiding and fixed-fee earning accountants.
- Mindless scale takes a backseat. Basic business fundamentals take centre stage.
Are our VCs and founders ready? Only time will tell.
#funding #profitability #technology #vc