InvestorQ : I want to know if I can invest in the IPOs of these loss making digital companies like Zomato, Paytm and MobiKwik and what is the risk?
vidhya Laxmi made post

I want to know if I can invest in the IPOs of these loss making digital companies like Zomato, Paytm and MobiKwik and what is the risk?

Answer
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sarah Leo answered.
4 months ago
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After the success of the Zomato IPO, there is a surge in interest in digital IPOs. But investors are still worried that these digital companies are still making losses for so many years. The ideas of digital is about being in the right place at the right time. Look for tipping points that can benefit like demonetization for Paytm, lockdowns for Zomato and Swiggy, online schools for Byjus etc. To make profits, digital plays must be in right place and at right time.

However, you need not rush into buying every digital stock. Here is what you should do as an investors. If the digital play is in a sweet spot, enjoying network effects then you can invest and make the best of the momentum. However, don’t go overboard and allocate all your IPO capital but keep some money to average on listing, if that happens. Above all, ensure that the digital IPO fits into your financial plan. That is the real test.

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