MF investments in loss-making tech stocks

Zomato, Delhivery, Nykaa, CarTrade-there is no chance of these companies making enough money to justify their lofty valuations. Why are mutual funds then putting investors' money at risk?

Last Friday, the shares of Delhivery, a newly listed logistics company, fell 18 per cent when the firm announced business volumes had been weak in the September quarter. Delhivery claims to be building “the operating system for commerce” through a combination of “world-class infrastructure, logistics operations of the highest quality, and cutting-edge engineering and technology capabilities”. But it does not make money. In the June quarter, it reported a loss of Rs 308 crore, which, on an annualised basis, is much higher than the FY22 loss of Rs 864 crore. With a few hundred crore rupees in the bank and