It is a tough question because a correct answer means finding the right solution too. Like any product, marketing a website has similar set of problems except the rejection rate for a website in question could be pretty high vis-à-vis a commercial product or services in the Off Line space. Offline offerings may have more tolerance compared to Online offerings.
I guess, like any where else be it America or India, the biggest challenge for the marketer or the owner of the Website (either transactional or info site) remains, how to reach masses on a yesterday basis at minimum cost. Fortunately in America, no sooner the Website build the traction, the company gets the credit line (loan) at competitive rate. However, for an Indian company trying to put a successful website on the world-wide-web, will not only have to work hard but pray hard too to get either funding or a credit line from a bank.
The Indian banks are pathetic as they would want to see 2-3 yrs of Balance Sheet with Profits, because they just don’t understand these new Online business avatar, where there is no inventory but only human and tech capital.
I know lot of successful managers and marketing people, working either in a Funded company or affiliated to Industrial house with some Online diversification, will come out with simple text book GYAAN, that try Google or put your Ad (TVC) on electronic media etc etc. However, fact of the matter is, that how a new start-up could afford these expensive marketing / branding medium to reach masses? How would one build customer traction or media traction without capital or aggressive cash flows , even one has done a great job of filling the expectation gap (Read Value Proposition in VCs language)?
So, the biggest challenge for any new website in India is Capital. If one could crack this piece, other things – Technology, Scalability, Value Adds, Marketing, Branding etc. could be managed as India has depth of such talents to manage other fringe hurdles of a new business. What you can’t hire is some one who is confident or even experienced to raise capital for the new venture as Online / Start-ups / Investment Banking etc is a new phenomenon in India till date. Having solved the capital issue will bring the other untold challenge of hiring quality people who understands the psychology of the online business. It is a different animal all together. A great offline Sales, Business development or Marketing resource may not be able to crack this piece with ease.
All markets are different and difficult. Any new solution that solves the existing problem gives the room for new services and the case in point is - Online services. Whether it is India or America, (I can say this with confidence as I have lived all my corporate life in India and now for last 2 plus yrs in USA), the challenges to reach your base are same, only degree varies. In fact, I find sales and marketing in America is far tougher then in India because of enormous scale (50 states) and operational cost. With a modest budget of say USD 250K and smart marketing plan, one may still manage to push products / services in India with good ROI, where as it may cost over USD 2.00 million to achieve the same in the USA.
So, the debate about Indian market is different or difficult or it is more Touch-and-feel market are old management thoughts. Fact of the matter is that if Naukri.com or IRCTC or Shaadi.com became so successful, it means India and Indians are ready for new services or buying options from web portal, that is geared for servicing the latent needs.
With disposal income rising and Indians ready to experiment with new ideas and new way of life, we will see more and more quality web sites coming up on every opportunity space, be it Finance , Insurance, Forex, Banking, Stock trading, HR, Retail, Travel or Shopping. India is a beautiful market and very lucrative too, if one knows how to crack the Capital piece and of course the Branding piece ASAP.
Cheers !!!
Manish K. Jaiswal
manish@bonsaiinternational.com
CEO – http://www.insurancemall.in/
Link - http://www.buynowindia.com/newsandreviews/index.php/MKJ/
Showing posts with label odyssey capital. Show all posts
Showing posts with label odyssey capital. Show all posts
Wednesday, February 6, 2008
Sunday, February 3, 2008
SSK Hyderabad is leading the Microfinance wave in India
It is heartening to see that SKS Microfinance is still the darling for VC firms. Micro Finance is not a new phenomenon in India, but SKS has perfected the art and science of this lending mechanism to poor and needy strata of society. It is debated in many quarters that Micro Finance is panacea of all financial ills of rural India and a secured (capitalist) mechanism to alleviate rampant poverty and unemployment from India.
The Economic Times reports that Hyderabad-based microfinance institution, SKS Microfinance has raised $37.3 million in its Series C funding. Apart from the existing investors, Sequoia Capital, Vinod Khosla and Odyssey Capital, two new investors, the U.S. based Silicon Valley Bank and Columbia Pacific, participated in the venture funding. The transaction was completed in December 2007 and the funds will be used to finance MFI’s expansion plans in 2008, ET quotes SKS Microfinance COO MR Rao.
2007 had been a fund raising year for the Indian microfinance sector. Another Hyderabad based MFI Share Microfin had raised $27 million investment from Dubai’s Legatum Capital and Aavishkaar Goodwell. Among the MFI founders, Aavishkaar Goodwell had raised an undisclosed amount from International Finance Corp (IFC), the Netherlands Development Finance Company (FMO), and Deutsche Bank, while Lok Capital has received a funding of $2.5 million from Boston based Accion International, a leading global microfinance institution.
More such funding in Micro Finance / Rural and Agriculture is a great news for India. One thing India is missing big time in the Rural area is use of modern tools and technology to enhance the productivity. Westerns World, particularly America has state-of-the-art tools at very competitive prices. Leasing and Hire Purchase / NBFC’s or Micro Finance companies could use their capital & knowledge to transfer these tools to their rural bases. Higher productivity means sure and higher ROI or IRR, which is the disbursement philosophy of any lending company.
Cheers !!!
MKJ
http://www.insurancemall.in/
http://www.buynowindia.com/
http://wwwnewsandreviews.in/
The Economic Times reports that Hyderabad-based microfinance institution, SKS Microfinance has raised $37.3 million in its Series C funding. Apart from the existing investors, Sequoia Capital, Vinod Khosla and Odyssey Capital, two new investors, the U.S. based Silicon Valley Bank and Columbia Pacific, participated in the venture funding. The transaction was completed in December 2007 and the funds will be used to finance MFI’s expansion plans in 2008, ET quotes SKS Microfinance COO MR Rao.
2007 had been a fund raising year for the Indian microfinance sector. Another Hyderabad based MFI Share Microfin had raised $27 million investment from Dubai’s Legatum Capital and Aavishkaar Goodwell. Among the MFI founders, Aavishkaar Goodwell had raised an undisclosed amount from International Finance Corp (IFC), the Netherlands Development Finance Company (FMO), and Deutsche Bank, while Lok Capital has received a funding of $2.5 million from Boston based Accion International, a leading global microfinance institution.
More such funding in Micro Finance / Rural and Agriculture is a great news for India. One thing India is missing big time in the Rural area is use of modern tools and technology to enhance the productivity. Westerns World, particularly America has state-of-the-art tools at very competitive prices. Leasing and Hire Purchase / NBFC’s or Micro Finance companies could use their capital & knowledge to transfer these tools to their rural bases. Higher productivity means sure and higher ROI or IRR, which is the disbursement philosophy of any lending company.
Cheers !!!
MKJ
http://www.insurancemall.in/
http://www.buynowindia.com/
http://wwwnewsandreviews.in/
Subscribe to:
Posts (Atom)
