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Shree Dhanraksha Securities

8th Sep · SEBI Registration INH000017152

Logistics & New-Age Business Growth versus profitability

SWIGGY
announced plans to sell its entire stake in its B2B distribution business Lynk Logistics to Udaan's parent for approximately ₹500 crore, while separately making a ₹75 crore primary investment in Udaan. This is an excellent case study for beginners because new-age businesses often involve a trade-off between growth, market share and profitability. Investors should examine contribution margins, cash burn, customer acquisition costs, order frequency, gross merchandise value and the economics of individual business segments. Investor lesson: Rapid revenue growth does not necessarily mean a good investment. Always ask when and how growth will translate into sustainable free cash flow.

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