Since 2022, there has been a shift of focus from growth to profitability for startups. Can someone highlight the reasons behind this trend? Also, based on the data, what are the potential long-term implications for the startup ecosystem if the focus
In India there is a sudden shift for profitability among startups but the cost of profitability is innovation and growth.
Innovation is expensive. It requires years of suffering in terms of balance sheet and name calling.
This time, the results season is not going particularly well for the market. Big companies are still struggling to maintain their revenue and profitability at the same level.
Profitability Metrics
These are the stages of profitability every founder should be familiar with (Refer the table below)
In the beginning, Start with Contribution margin (CM)- measure if your revenue covers variable costs.
Next, target transacti