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March 27, 2007

"Performance of Internet businesses better than perception"

Speaking at Internet & Mobile Connect, Avnish Bajaj, Managing Director of Matrix Partners India, said said how while in 1999-2000, perception of Internet-based businesses was ahead of reality, over the past few years, it has been the other way around. “Since investors have had such a negative perception, today we have a situation where while the audience is clearly there, there is a lack of compelling services and content.” He pointed out how India is among the few markets in the world where traditional media companies have latched on to the Internet quite early and ensured there wasn’t enough time for strong stand-alone businesses to emerge.

Avnish Bajaj of Matrix Partners India

There is more opportunity for utilitarian applications in the Indian context than self-actualization ones, Bajaj added. Pointing to the success of the Indian Railways’ online ticket booking service, he said as long as there are compelling enough applications, companies can build significant businesses by serving consumers who would pay even small amounts like Rs.50 a month.

Arun Natarajan is the Founder & CEO of Venture Intelligence, the leading provider of information and networking services to the private equity and venture capital ecosystem in India. View free samples of Venture Intelligence newsletters and reports.