Real world is not the place that an online player like Info Edge would want to be in at the moment... But this ‘virtual entity’ isn’t without its share of recessionary headaches either, writes Neha Sariaya...
What does the term ‘garage’ got to do with every successful
entrepreneurship venture? Internationally of course, you’d have heard of names galore who made their mark in their home garage, but in India? Well, wonderfully, here too, the situation is no different! You’ll get the drift of our argument when you finish this paragraph... When you are born to succeed as an entrepreneur, you learn a thousand ways to achieve your ends, or rather start your golden journey. And Sanjeev Bikhchandani, MD and CEO, Info Edge (India) Ltd. certainly had a few of those tricks up his sleeves. And what degree of solidarity in vision are we talking about? When dotcom startups fell all around like nine pins during the turn of the millenium, Sanjeev’s virtual brainchild held its spot tight, and grew with every passing year. Of course there were the hiccups, but fighting his way to make the most of opportunities was much that he learnt having started operations in the servant quarter above his garage paying Rs.800 as monthly rent in 1990 (Hey! Wait! Did you miss that one? He started operations in the servant quarter above his ‘garage’!)
It is 2008, and his once small dotcom startup can boast of current assets of Rs.646.6 million (as on March 31, 2008). So what was the first to-market mode that the company followed? “We used to take job ads and make direct calls to our clients just like direct selling of a product. It was then a small company with a few people working for it. After we took funding the first thing we did was to move to a new office and started off different teams for different functions like marketing, technology etc,” reminisces Hitesh Oberoi, Whole time Director & Chief Operating Officer, Info Edge. As far as expansion to frontiers beyond was concerned, Oberoi adds, “We expanded to other cities beyond Delhi, and also enhanced our offerings and changed our prices.” Today, when you measure the brand awareness quotient of the company’s first online portal, naukri.com, to the blooming of many others under its umbrella such as Jeevansaathi.com, 99acres.com, Quadrangle.com, Brijj.com and the latest being Shiksha.com, one can safely conclude that it has been quite a journey. Even Ankit Kedia, Analyst, Centrum Broking, agreeingly voices out, “They enjoy the first mover advantage till date. The company has a brand name and a large circulation. Thus they enjoy the biggest pool of resources...” And the proof of dominance? Today, naukri.com has been able to retain its no.1 spot and has witnessed a growth rate of about 56% over the years with a market share of 50% followed by competitors like Monster.com and Timesjobs.com which accounted for about 35% and 15% of the online job application marketpie during 2008.
What further differentiates the company from its counterparts in the industry is its conservative and cautious approach towards business. One instance of this can be seen in its overseas expansion strategy, which it has restricted just to countries in the Gulf region in the form of naukri.com Gulf. So what’s the reason behind this? As an analyst justifies, “In India, Info edge started fifteen years back, but it’s just over the past five years that the company has grown at a much faster rate. And thus it wants to be more cautious before taking the plunge into newer oceans...” Even Oberoi agrees to it wholeheartedly as he quotes, “Our investments are based on the business potential. We review our new businesses on a quarter-to-quarter basis. We see what is working and what is not and we put more resources on issues that are getting profitable.” Indeed, for Info Edge, there seems to be no hit-and-trial methodology!
When it comes to inorganic growth, the company is always open to newer acquisitions but logically, at the right price and in the right space. Thankfully, here is a player who is not blind to realities and getting double-sized overnight! So is everything rosy for the online entity? Well, not really. With 40% of its revenues coming from the IT industry, there is somehow a feeling of over reliance on one sector that may finally prove the poison pill for the company. Secondly, the company for long has been unsuccessful in replicating the success of naukri.com in all other verticals like – matrimonial (Jeevansathi.com), real estate (99acres.com) et al as Ambarish Raghuvanshi, CFO, Info Edge confesses, “Another challenge for us is to raise the bar for our mid-sized businesses and increase their size to what naukri.com is today...” However, the brighter part of this dark picture is that despite the global downturn, the company’s revenues have been least affected. For instance, despite the real estate prices falling, 99acres.com has grown appreciably - a revenue growth of 98.9% during Q2, 2009 as compared to the same a year ago. Moreover, its other arm – Jeevansathi has recorded a revenue growth of 40.3% during Q2 2009, certainly boosting the company’s potential of earning more by the day, downturn or no downturn. What’s a sweeter surprise? When companies across the board are focussing on slowing down and decreasing production or selling off assets, Info Edge has its eyes set on expansion. As an analyst avers, “Online classified markets earn a lot due to heavy spending by various sectors, with education and job being a major source.” Surely, when it comes to the job market, Info Edge has already taken the lead and, “when it comes to the education market, it has its hands on,” adds an industry expert.
For Complete IIPM Article, Click on IIPM Article
Source : IIPM Editorial, 2008
What does the term ‘garage’ got to do with every successful
entrepreneurship venture? Internationally of course, you’d have heard of names galore who made their mark in their home garage, but in India? Well, wonderfully, here too, the situation is no different! You’ll get the drift of our argument when you finish this paragraph... When you are born to succeed as an entrepreneur, you learn a thousand ways to achieve your ends, or rather start your golden journey. And Sanjeev Bikhchandani, MD and CEO, Info Edge (India) Ltd. certainly had a few of those tricks up his sleeves. And what degree of solidarity in vision are we talking about? When dotcom startups fell all around like nine pins during the turn of the millenium, Sanjeev’s virtual brainchild held its spot tight, and grew with every passing year. Of course there were the hiccups, but fighting his way to make the most of opportunities was much that he learnt having started operations in the servant quarter above his garage paying Rs.800 as monthly rent in 1990 (Hey! Wait! Did you miss that one? He started operations in the servant quarter above his ‘garage’!)It is 2008, and his once small dotcom startup can boast of current assets of Rs.646.6 million (as on March 31, 2008). So what was the first to-market mode that the company followed? “We used to take job ads and make direct calls to our clients just like direct selling of a product. It was then a small company with a few people working for it. After we took funding the first thing we did was to move to a new office and started off different teams for different functions like marketing, technology etc,” reminisces Hitesh Oberoi, Whole time Director & Chief Operating Officer, Info Edge. As far as expansion to frontiers beyond was concerned, Oberoi adds, “We expanded to other cities beyond Delhi, and also enhanced our offerings and changed our prices.” Today, when you measure the brand awareness quotient of the company’s first online portal, naukri.com, to the blooming of many others under its umbrella such as Jeevansaathi.com, 99acres.com, Quadrangle.com, Brijj.com and the latest being Shiksha.com, one can safely conclude that it has been quite a journey. Even Ankit Kedia, Analyst, Centrum Broking, agreeingly voices out, “They enjoy the first mover advantage till date. The company has a brand name and a large circulation. Thus they enjoy the biggest pool of resources...” And the proof of dominance? Today, naukri.com has been able to retain its no.1 spot and has witnessed a growth rate of about 56% over the years with a market share of 50% followed by competitors like Monster.com and Timesjobs.com which accounted for about 35% and 15% of the online job application marketpie during 2008.
What further differentiates the company from its counterparts in the industry is its conservative and cautious approach towards business. One instance of this can be seen in its overseas expansion strategy, which it has restricted just to countries in the Gulf region in the form of naukri.com Gulf. So what’s the reason behind this? As an analyst justifies, “In India, Info edge started fifteen years back, but it’s just over the past five years that the company has grown at a much faster rate. And thus it wants to be more cautious before taking the plunge into newer oceans...” Even Oberoi agrees to it wholeheartedly as he quotes, “Our investments are based on the business potential. We review our new businesses on a quarter-to-quarter basis. We see what is working and what is not and we put more resources on issues that are getting profitable.” Indeed, for Info Edge, there seems to be no hit-and-trial methodology!
When it comes to inorganic growth, the company is always open to newer acquisitions but logically, at the right price and in the right space. Thankfully, here is a player who is not blind to realities and getting double-sized overnight! So is everything rosy for the online entity? Well, not really. With 40% of its revenues coming from the IT industry, there is somehow a feeling of over reliance on one sector that may finally prove the poison pill for the company. Secondly, the company for long has been unsuccessful in replicating the success of naukri.com in all other verticals like – matrimonial (Jeevansathi.com), real estate (99acres.com) et al as Ambarish Raghuvanshi, CFO, Info Edge confesses, “Another challenge for us is to raise the bar for our mid-sized businesses and increase their size to what naukri.com is today...” However, the brighter part of this dark picture is that despite the global downturn, the company’s revenues have been least affected. For instance, despite the real estate prices falling, 99acres.com has grown appreciably - a revenue growth of 98.9% during Q2, 2009 as compared to the same a year ago. Moreover, its other arm – Jeevansathi has recorded a revenue growth of 40.3% during Q2 2009, certainly boosting the company’s potential of earning more by the day, downturn or no downturn. What’s a sweeter surprise? When companies across the board are focussing on slowing down and decreasing production or selling off assets, Info Edge has its eyes set on expansion. As an analyst avers, “Online classified markets earn a lot due to heavy spending by various sectors, with education and job being a major source.” Surely, when it comes to the job market, Info Edge has already taken the lead and, “when it comes to the education market, it has its hands on,” adds an industry expert.
For Complete IIPM Article, Click on IIPM Article
Source : IIPM Editorial, 2008
An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative
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B-schooled in India, Placed Abroad (Print Version)
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IIPM makes business education truly global (Print Version)
The Indian Institute of Planning and Management (IIPM)
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Top Articles on IIPM:-
'This is one of Big B's best performances'
IIPM to come up at Rajarhat
IIPM awards four Bengali novelists
IIPM makes business education truly global-Education-The Times of ...
The Hindu : Education Plus : Honour for IIPM
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