Equity Analyst, LightStream Research

Oshadhi Kumarasiri

An equity research analyst with over 7 years of experience in multiple sectors. Previously worked for one of the world's largest asset managers with about USD2.5trn in AUM, covering small and micro-cap companies in the consumer sphere across Europe and developed Asia. Also experienced in covering multiple industries including banking, insurance and asset management, retail, tech, telco and REIT.

Equity Analyst

Alibaba-Backed Zomato Buys Ubers’ Eats Business in India

Uber - 2021 Profitability a Beautiful Dream For Locked-Up Investors

Long-Short Analysis on Japan, Asia and the World

LightStream Research

LightStream conducts quantitatively rigorous and data-driven analysis with a focus on Japan and Asia.

We consistently cover the Tech, Consumer and Industrial sectors, and provide ECM and Events coverage more broadly.

We supplement traditional qualitative insights from company relationships with a robust quantitative foundation that examines as much historical data as is available.
We further refine the accuracy of our insights and calls through the use of alternative data to flesh out current trends, and through a valuation framework that emphasises non-superficial peer group selection and a proper attempt to understand the metrics and changes that have driven security valuations in the past.

Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/zomato-media-pvt" target="_blank" data-smartkarma-citation="entities:28820:1" rel="noopener">Zomato (ZOM IN)</a>, the most downloaded food and drinks application in India in each of the last three years, filed for an IPO with The Securities and Exchange Board of India (SEBI) on 28<sup>th</sup> April 2021. The offer comprises INR 75,000m ($1.0bn) worth new shares and INR 7,500m ($102m) worth secondary shares.</li>
<li>Zomato made an operating loss of INR 3.6bn in 9MFY21 (serving only about 50% of the FY20 monthly active customers) compared to INR 22.7bn in FY20. Even though this seems like a significant improvement, it is more an indication that Zomato is incapable of generating a profit even from its most loyal customers.</li>
<li>With the recent unprofitable online food delivery IPO, <a href="https://www.smartkarma.com/entities/roofoods-ltd" target="_blank" data-smartkarma-citation="entities:27468:1" rel="noopener">Deliveroo (ROO LN)</a> trading about 33% below the IPO price, we see little potential in Zomato, unless it is priced at a discount to peers.</li>
</ul>



Zomato (ZOM IN), the most downloaded food and drinks application in India in each of the last three years, filed for an IPO with The Securities and Exchange Board of India (SEBI) on 28th April 2021. The offer comprises INR 75,000m ($1.0bn) worth new shares and INR 7,500m ($102m) worth secondary shares.
Zomato made an operating loss of INR 3.6bn in 9MFY21 (serving only about 50% of the FY20 monthly active customers) compared to INR 22.7bn in FY20. Even though this seems like a significant improvement, it is more an indication that Zomato is incapable of generating a profit even from its most loyal customers.
With the recent unprofitable online food delivery IPO, Deliveroo (ROO LN) trading about 33% below the IPO price, we see little potential in Zomato, unless it is priced at a discount to peers.


Zomato IPO: Improving Unit Economics Could Be Misleading & There Could Be Goodwill Write-Offs