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Why Zomato backer Sanjeev Bikhchandani is a bottom-up, not top-down, investor

Livemint · 2m

- Sanjeev Bikhchandani focuses on investing in and mentoring startups, with successful bets such as Policybazaar and Zomato. - Rather than focusing on specific sectors, Bikhchandani looks for category-defining companies and good teams. - He sees AI as an opportunity and has implemented AI projects within Naukri.com to enhance its performance. - Early-stage investing has become more modest in terms of valuations, with smaller rounds and increased discernment by investors. - Corporate governance is crucial, and investors need to ensure constant conversation, checks and balances, and scrutiny. - Bikhchandani believes valuations are determined by the market and can change over time. He expects Zomato's various businesses to grow in the next five years. - Quick commerce has potential for profitable growth if approached sensibly, leveraging expertise and logistics from related industries. - While there may be froth in public markets, private markets are not considered unfairly priced currently. - Bikhchandani looks for customer demand, a strong team, and a commitment to governance in founders before investing. - He aims to create a durable institution at Info Edge that continues to adapt, innovate, and attract bright people. - Bikhchandani is involved with portfolio firms as a board member but not deeply involved in day-to-day operations. - Info Edge focuses on the growth and profitability of its operating businesses rather than obsessing over share price and discounts.