I’m not seasoned in VC-land, but the fraction of income spent on food eaten at home is much higher in Pakistan than in rich western countries. It was almost hal

I’m not seasoned in VC-land, but the fraction of income spent on food eaten at home is much higher in Pakistan than in rich western countries. It was almost half in 2012, versus about 7% in the USA (https://tribune.com.pk/story/744223/pakistanis-spend-nearly-half-of-their-income-on-food-report https://tribune.com.pk/story/744223/pakistanis-spend-nearly-...) With that, I think the math could be somewhat right, or at least made to look right. Let’s assume 30% spent on food, with this company eventually taking 10% of that. That’s 8 billion in revenues. With a 1% profit margin (profit margins are thin in this market), that would bring in 80 million a year in profits. That would easily be enough to value the company at 275 million. If you do the math more carefully, you likely will find dragons, though. Pakistani with low incomes will have more time than money, so they would never become your customers. So, that initial 30% will be lower, likely a lot. Also, it’s questionable whether the company would be able to grab that market without more investments. In the end it may have boiled down to “VCs have lots of money and no other places to use it than gambles like these”.