Tuesday, January 31, 2006

Introduction : Internet booms in India

Internet seems to have emerged stronger from the dot-com bust of 2000 and is now creating substantial value for various stakeholders. Over the last 10 years we have seen emergence of robust, sustainable business models and global brands such as Google, Yahoo, eBay and Amazon.Undoubtedly the biggest success story is search engine giant Google. For a company that has been in existence for only 7 years it’s current valuation of close to $120 billion takes it way ahead of media giant Time Warner and makes it most valuable media company in the world!India has been a slow starter but has its share of successes in the Internet space in Indiatimes, Naukri, Shaadi, Bharat matrimony, Rediff and Yahoo India among others.

As the market has picked up, India has seen some major acquisitions in the last couple of years:·

Monster’s acquisition of Jobsahead in mid 2004 for 40 crores http://www.expresscomputeronline.com/20040614/indianews02.shtml , http://www.thehindubusinessline.com/ew/2004/06/14/stories/2004061400080100.htm·

eBays’ acquisition of Baazee for around 225 crores in June 2004
http://www.expresscomputeronline.com/20040712/newsanalysis01.shtml
http://www.businessworldindia.com/july0504/news04.asp

In the recent months, India has emerged as “the” hot destination and more investment is likely. Participation in the India story is on the agenda of Financial Institutions / Investors / Companies. However, I have not come across a comprehensive business view of the Indian Internet Industry and through this blog, I am aiming at aggregating my Business perspective, thoughts and understanding of the “space”. I encourage my readers to contribute and take this dialogue forward. Together we can create a powerful resource on Internet in India.I estimate the current annual B2C Internet industry size to be around Rs. 3,000 crores. The B2B market size would be easily be 8-10 times this number.

Over the next few posts I will like to focus on various Internet businesses / revenue models and would like to talk about trends / success stories in India. I hope you will be part of the journey.

10 comments:

Anonymous said...

India is on the roll and I am sure we are going to see the Internet market boom in the next couple of years.
Great blog! Keep writing

Arjun said...

what I would like to understand is whether India can make it without a significant increase in its user base

Umesh said...

I think your analysis of the Indian Internet space is very appropriate.

The excitement and business opportunities in India's internet landscape has just about started.

kartik said...

India will see the boom in the internet space now. However having said that there needs to be a certain amount of caution in the way we approach the customer. The entire delivery has to be world class backed by excellent service standards otherwise the customer is just a click away from rejecting you.

Anonymous said...

India is definitely going to experience an internet boom in the next couple of years. But i think that this space is going to be more competitive and difficult to survive in than traditional business. Unless one has a great idea and strong delivery systems, its very difficult to attract and retain the customer.

rajat said...

very good post.. keep them coming in

kartik said...

What are the kinds of businesses which will boom in India on the internet. I think travel, greetings, Entertainment business will do well in the next few years. In the long run companies who have a pulse on the technology and customer will be able to do well.

Aanchal said...

Very interesting and informative blog... Keep writing!

oli said...
This comment has been removed by the author.
oli said...

Hey....do you follow Riverside investment criteria...?its easy to follow....you can try....thanks.....