We have all used at least one service from this list, and with the amazing deals and discounts that they offer, have also wondered, how do these startups actually earn money? Turns out, they are loss-making entities bleeding thousands of rupees every minute. Here's a look at how much these famous startups are losing every minute.
1. OYO is bleeding ₹76,077 every minute
OYO Rooms was started by Ritesh Agarwal in 2012. It became a popular choice of stay for people on a budget. Its popularity led it to become a unicorn in September 2018 after receiving funding of $800 million from Softbank. But as of the Financial Year 2021-22, OYO incurred losses of ₹3943.84 cores, which amounts to a loss of over ₹76,077 every minute.
2. Paytm is bleeding ₹60,069 every minute
With its IPO being listed at a loss of ₹200, it is safe to say that Paytm is facing bad days. Paytm was founded by Vijay Shekhar Sharma in 2010. It used to be a popular mode of payment because of the ease it brought in transactions.
For the quarter ended in December 2021, Paytm incurred a loss of ₹778.5 crores. This means that Paytm incurred a loss of over ₹60,069 every minute in the December quarter.
3. Swiggy is bleeding ₹25,347 every minute
One of the two of our go-to food delivery apps, Swiggy, was founded in 2014 by Sriharsha Majety, Nandan Reddy, and Rahul Jaimini. Swiggy provides amazing discounts, and that is probably the reason why it is losing so much money. In the last year itself, Swiggy reported a loss of ₹1,314 crores, which means it lost over ₹25,347 every minute.
4. PB Fintech is bleeding ₹22,995 every minute
PB Fintech is the parent company of Policybazaar and Paisabazaar. It was founded in 2008 by Yashish Dahiya and Alok Bansal. In the December quarter, PB Fintech incurred a loss of ₹298 crores, that's a loss of around ₹22,995 every minute.
5. MobiKwik lost ₹2,147 every minute
MobiKwik, a payment service provider, was founded by the husband-wife duo Bipin Preet Singh and Upasana Taku in 2009.MobiKwik reported a loss of ₹111.3 crores in the financial year 2021. That amounts to a loss of ₹2,147 every minute.
6. CarTrade lost ₹1,802 every minute
CarTrade is a platform for selling and buying used cars. It was founded by Vinay Sanghi in 2009. CarTrade reported a net loss of ₹23.36 crores in the December 2021 quarter. That is around ₹1,802 per minute.
The revenues earned by these famous startups are pretty decent. Their expenses are mostly on providing discounts to the customers or in gaining more customers, which are eventually turning these startups into loss-making entities.
The losses some of these startups are incurring is more than the salary some of us (read: me) receive.