Having anchor companies / early adopters doesn’t in itself seem to be a moat. It may give them a head-start in building and testing their business model but what will prevent any other entrant to offer the same service better to the same anchor companies?
I am unable to figure out what could be their actual moat -
- Technology but with a finite set of data points to analyze and monitor, is it really that difficult to replicate this?
- Network effect but I am unable to see how are they ensuring stickiness and preventing switching?
- Early starter as they don’t seem to be the first starter, there are others also who are into this supply-chain financing space.
So I am still confused as to what exactly is their moat. They are definitely filling a structural void and do seem to be doing well as yet but what will ensure that they can really continue to do well consistently?
In the absence of concalls, a lot of questions remain unanswered. Anyone having crucial insights about this sector and this company’s modus operandi that may be lending them a true moat, please do share herein.
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