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Zomato not copying Info Edge, Tencent: Sanjeev Bikhchandani

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Info Edge founder Sanjeev Bikhchandani said Zomato is not copying the Info Edge playbook. They are modelling the company on their own path, he added

Info Edge founder Sanjeev Bikhchandani believes portfolio company Zomato is not copying the Info Edge playbook when it comes to investing in new-age companies.
Zomato CEO Deepinder Goyal on Wednesday announced the company's investments in startups such as Curefit, Shiprocket and Magicpin, and said the company will invest another $1 billion into more companies over the next couple of years.
"I do not believe that Deepinder is modeling Zomato on Info Edge, they are modelling the company on their own path. They are original thinkers," Bikhchandani told CNBC-TV18 in his first TV interview after receiving the prestigious Padma Shri award earlier this week.
"Zomato is not copying Alibaba, Tencent, InfoEdge. If they regard groceries and logistics as big part of their future, they will go in that direction. They have said that we are focused on food and the rest we can do inorganically. It is a sound strategy," Bikhchandani said.
Bikhchandani also said that 2-3 years was a reasonable timeframe for companies going public to turn a profit.
"Many of the companies can turn a profit quickly when required. Indian markets have come to terms with loss-making companies going public as long as there is a time line of profitability. 2-3 yrs is a reasonable timeframe for companies to turn a profit," he said.
Commenting on the high valuations unicorns are chasing when going public, Bikhchandani said startups are getting valuations from institutional investors.
He added that valuations of all companies are rising. "Info Edge valuation has also gone up since pandemic though fundamentals may not have increased at the same pace," he said.
"There is liquidity in the market that is driving prices up," he added.
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