Z47
October 3, 2023

#IPO Learning 7: Accounting for online companies needs to evolve

Avnish Bajaj
Founder and Investor
Rajinder Balaraman
Managing Director

•Digital companies have to expense all their customer acquisition costs

•Offline companies can depreciate store setup expenses over many years

•Accounting policies have not evolved to keep pace with this industry

•Companies have to figure out how to re-write their accounts

•Customers are the long-term assets in these businesses

•Value investing Buffet style has to evolve to understand digital businesses

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#IPO Learning 7: Accounting for online companies needs to evolve

Avnish Bajaj
Founder and Investor
Rajinder Balaraman
Managing Director
Article

•Digital companies have to expense all their customer acquisition costs

•Offline companies can depreciate store setup expenses over many years

•Accounting policies have not evolved to keep pace with this industry

•Companies have to figure out how to re-write their accounts

•Customers are the long-term assets in these businesses

•Value investing Buffet style has to evolve to understand digital businesses

We are excited about the innovation and growth opportunities in this sector.

If you are considering building in the footwear space, we’d love to chat.
Drop us a line at consumer@matrixpartners.in

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