Sustainability is what sells now in startup space

1. Sustainability is what Sells
Now in Startup Space
Focus is on probing income statements and making money on ops than
by sales

2. Contd…
Startups that may not have hyper growth but can boast of positive unit economics
are emerging as investors' favourites, as sustainable growth becomes the new
mantra. When a consumer-internet company can reap more revenue from a user
than the money it spent on acquiring that person as a customer, that's positive unit
economics -that metric investors are counting on to shine a more realistic light on a
company's business performance than sales fed by discounts. As investors tighten
their purse strings, India's startup ecosystem, which until six months ago was driven
by a rush to add customers without regard to costs or cash-burn, is increasing focus
on scrutinising income statements and making money on an operational level.
There are several examples of startups riding this trend, where better bang for the
buck now counts more than quick growth. Budget hotel startup Treebo was largely
written off after its biggest rival OYO Rooms secured hundreds of millions of dollars
in funding and New York-based hedge fund Tiger Global invested in ZO Rooms. But
Zo is now being acquired by OYO after a bitter pricing war that left it without any
cash in the bank. Treebo, meanwhile, is back on investors' radar after proving that it
is making money on each transaction, unlike its larger rivals.

3. Contd…
“All investors are now looking for businesses that have sustainable unit
economics, and to actually be gross margin-positive in the first seven months
is a great place to be,“ said Sidharth Gupta, cofounder of Treebo, which is
backed by venture capital firms SAIF Partners and Matrix Partners.
“The average room rate at a Treebo hotel is ` . 2,100. Revenue per available
room is ` . 1,600, which is 4-5 times that of other startups in this space,“ says
Gupta, adding that Treebo hotels have an occupancy rate of 76%. But these
numbers mean that Treebo has a smaller presence than that of its rivals,
with 1,500 rooms in 53 hotels as compared to OYO's 45,000 rooms across
4,500 properties.But that also means that while Treebo, on an average, has
30 rooms in a property, Oyo has 10.
Faasos, Parcelled, TinyOwl and CitrusPay, too, have built their businesses to
deliver sustainable traction driven by tech innovations and product
differentiation rather than discounts.

4. For Details and Appointment contact:-
Parveen Kumar Chadha… THINK TANK
(Founder and C.E.O of Saxbee Consultants & Other-Mother
marketingandcommunicationconsultants.com)
Email :-saxbeeconsultants@gmail.com
Mobile No. +91-9818308353
Address:-First Floor G-20(A), Kirti Nagar, New Delhi India Postal Code-110015