Most companies (98%) in the world, including tech startups, should be very profit focused. Being profitable allows you degrees of freedom you don’t have when you rely upon other people’s money such as an angel investors or venture capitalists.
For Investment, even angel investors pick startups that take at least 3+ years just to break even (turn profitable), however, in what could be seen as one of rare incidences, a telecom startup in India has just turned profitable within just 17 months of its launch that’s too when there is cut throat competition in India’s telecom industry market.
The startup, we are talking about, is “allegedly” backed by a kind of angel (investor) none other than prime minister Narendra Modi himself. Yes, we are talking about telecom startup Reliance Jio, which was launched in 2016.
Jio, which is wholly owned subsidiary of India’s richest man’s company Reliance Industries, has swung to a profit of 5.04 billion rupees (US$78.97 million) in the third quarter from a loss of 2.71 billion in the second quarter, reported LiveMint.
And, because of this its parent company Reliance Industries post a 25%+ rise in consolidated net profit.
The Mumbai-based firm owned by India’s wealthiest man, Mukesh Ambani, said consolidated net profit for the three months to December 31 rose to 94.23-billion rupees ($1.5bn) from 75.33-billion rupees a year earlier for the same period. A Bloomberg survey of nine analysts had projected the consolidated net profit at 84.96-billion rupees. Meanwhile, Jio reported a profit of 5.04-billion rupees for the quarter ending on December 31.
On the other hand, Bharti Airtel, Jio’s biggest competition anf India’s biggest telecom service provider, has reported falling profits for six straight quarters.
Now what Ambani had said about this, in an official statement is – “Jio’s strong financial result reflects the fundamental strength of the business, significant efficiencies and right strategic initiatives.”
What strategies he is talking about, we are leaving it for your wicked imaginations.
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