Singapore-based Temasek, with a global portfolio worth almost $300 billion, is positive on India and is keen on more tech-enabled businesses. Ravi Lambah, Head of Temasek’s Investment Group, says new age companies will need to turn profitable much faster to remain attractive for investors and Temasek’s decision to exit portfolio companies like Zomato, Policybazaar at the end of lock-in period will depend on the long term business case of the companies.
Speaking to CNBC-TV18's Nisha Poddar, Lambah said, “In an environment where things are difficult, it is a good strategy to try and reduce cost and become profitable faster than what you may have planned in a bullish environment.”
He added, “That is a good thing, because you will attract capital faster; because investors will believe in the path to profitability.” And why is the path to profitability important? “It is because you can then rely upon your own funds, as against equity, to fund your growth.”
On the India story, Lambah said, “We continue to be long-term positive on India for many reasons. Digitisation has been a big theme, the future of consumption continues to be big for us, and sustainable living is another trend that we are tracking very closely. And again, India is very well aligned to that. So we see opportunities in India, we are keen to increase the exposure.”
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