Comments on: Concerns from India’s booming Internet industry. http://ileher.com/2006/10/16/concerns-from-indias-booming-internet-industry/ Catching the Internet wave in India Wed, 08 Feb 2012 02:22:49 +0000 http://wordpress.org/?v=2.7 hourly 1 By: iLeher » Silicon Valley in India?- All about Internet industry in India http://ileher.com/2006/10/16/concerns-from-indias-booming-internet-industry/comment-page-1/#comment-244 iLeher » Silicon Valley in India?- All about Internet industry in India Mon, 04 Dec 2006 09:29:50 +0000 http://ileher.com/2006/10/16/concerns-from-indias-booming-internet-industry/#comment-244 [...] The report also outlines some of the risks of a tech bubble. Some more points include the lack of labor laws, the fact that judicial system moves slowly and the fact that there is no concept of preferred stocks. -We had covered some of the concerns here. In the end, the article talks about some of the rural possibilities coming out of entrepreneurial activity. For e.g. a Hyderabad based CoOptions Technologies. Also they have compiled a list of VC’s along with their portfolio companies in India. [...] [...] The report also outlines some of the risks of a tech bubble. Some more points include the lack of labor laws, the fact that judicial system moves slowly and the fact that there is no concept of preferred stocks. -We had covered some of the concerns here. In the end, the article talks about some of the rural possibilities coming out of entrepreneurial activity. For e.g. a Hyderabad based CoOptions Technologies. Also they have compiled a list of VC’s along with their portfolio companies in India. [...]

]]> By: iLeher » No money for early stage ?- All about Internet industry in India http://ileher.com/2006/10/16/concerns-from-indias-booming-internet-industry/comment-page-1/#comment-218 iLeher » No money for early stage ?- All about Internet industry in India Thu, 30 Nov 2006 02:56:40 +0000 http://ileher.com/2006/10/16/concerns-from-indias-booming-internet-industry/#comment-218 [...] We have asked if India is ready for web2.0 here. Also we raised our concerns about our booming internet industry here. Although we have our doubts about the industry, we are seeing a lot of money flowing into India recently. We saw guruji.com grabbing $7 million and then we saw sulekha getting $10 million and more recently we see that travelguru, the leading travel portal got $15 million. See a comprehensive list of investments here. We have stats and reports of VC firms raising billions of dollars to invest in India. New funds are coming into existence every day raising even more money. But the point to note here is that most of the investments we have seen till date are either late stage in nature or in the companies that mimic proven business models elsewhere. Some of the companies we recently interviewed like redbus here, onyomo here and picsquare here are all still working on angel funding. These companies are more or less in early stage now. The feeling we got after talking to them was that the VCs are queued up on the sidelines. VCs don’t want to miss the opportunity when the time comes but they don’t want to move in unless they see some traction in these markets. Is it the traction or is the risk of investing in early stage Indian startups way too high?  [...] [...] We have asked if India is ready for web2.0 here. Also we raised our concerns about our booming internet industry here. Although we have our doubts about the industry, we are seeing a lot of money flowing into India recently. We saw guruji.com grabbing $7 million and then we saw sulekha getting $10 million and more recently we see that travelguru, the leading travel portal got $15 million. See a comprehensive list of investments here. We have stats and reports of VC firms raising billions of dollars to invest in India. New funds are coming into existence every day raising even more money. But the point to note here is that most of the investments we have seen till date are either late stage in nature or in the companies that mimic proven business models elsewhere. Some of the companies we recently interviewed like redbus here, onyomo here and picsquare here are all still working on angel funding. These companies are more or less in early stage now. The feeling we got after talking to them was that the VCs are queued up on the sidelines. VCs don’t want to miss the opportunity when the time comes but they don’t want to move in unless they see some traction in these markets. Is it the traction or is the risk of investing in early stage Indian startups way too high?  [...]

]]> By: vivek garg http://ileher.com/2006/10/16/concerns-from-indias-booming-internet-industry/comment-page-1/#comment-40 vivek garg Mon, 16 Oct 2006 03:04:14 +0000 http://ileher.com/2006/10/16/concerns-from-indias-booming-internet-industry/#comment-40 all excillent points Madhur. I often wonder myself why outsourcing and back office services are the most succesful part of indian IT scene. India always had tough time creating prducts or Internet brands. I have trouble ordering products with the best of the indian brands and the service is not great at all. I talked about this in your ecommerce post as well where we recognized that there is a potential to improve. I think its an opportunity more than anything else here and that is why so much cash chasing it. With increasing demand of customer satisfaction and competition in indian market, supply side has to get better to scale. And new services will create value that is unheard of before. How fast this wil happen and what will be the medium are the main questions. all excillent points Madhur. I often wonder myself why outsourcing and back office services are the most succesful part of indian IT scene. India always had tough time creating prducts or Internet brands. I have trouble ordering products with the best of the indian brands and the service is not great at all. I talked about this in your ecommerce post as well where we recognized that there is a potential to improve.

I think its an opportunity more than anything else here and that is why so much cash chasing it. With increasing demand of customer satisfaction and competition in indian market, supply side has to get better to scale. And new services will create value that is unheard of before. How fast this wil happen and what will be the medium are the main questions.

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