The Venture Intelligence Blog

From the article by the Zoho founder Sridhar Vembu in Economic Times : Another day , another hot tech company raises $500 million (or is it a billion?) in Series D, Series E -I propose we just call all of it Series QE, because that is where all the money comes from anyway , right?   ..If you are in one of those hot companies burning cash, enjoy the ride as long as it lasts--and make sure you have a safety net if, heaven forbid, something bad happens. But what about companies that cannot or don't want to raise that kind of money?  ...In the world of business and finance, following fashion is the path to the poorhouse. Avoiding the fashionable location, the fashionable field and, dare I say , fashionable employees, may be the best way to survive a bubble. Venture Intelligence is the leading provider of data and analysis on Private Company Financials, Transactions (private equity, venture capital and M&A) & their Valuations in India. Click Here to Sign Up for th...

Mint has a blow-by-blow account. Hats off to Raghunandan G for being so open. Extracts from the article - that reminded me a lot of the John Maynard Keynes quote "Markets can remain irrational longer than you can remain solvent": Ola’s rival, across town, TFS, was watching the firm’s every move closely. Ola’s logic was clear. The company had raised Rs.250 crore in a round of funding in July 2014 and was burning money to get more customers and drivers on its platform. In the process, it was losing as much as Rs.200 on every ride.  ...On 1 November, TFS decided to play the game. It came up with a simple strategy. Thanks to the higher per km rates, consumers weren’t using the service for short distance travel. So, at the consumer end, TFS dropped rates. To Rs.49 for the first 4km and then Rs.14 per km. But at the driver’s end, it needed to incentivize drivers to pick up rides. So it held on to the old rates for drivers (Rs.200 for the first 10km). So if a customer was pa...

So informs Shyam Kamadolli of Fidelity's Private Equity arm in his blog post titled "India’s Internet – the second gold rush". Extracts: Last week, on one of the hottest afternoons in New York City this summer, I found myself cooling off in a swanky Midtown bar with an  investment banker.  Within minutes our conversation turned to reports of frenzied interest among large institutional investors in India’s growing online businesses.    I cracked a smile as I had just heard the same thing earlier in the day from two other investors: a sovereign wealth fund and a mutual fund manager.  This is only amusing because a year ago nobody would have been discussing an Indian Internet business ensconced in the glass and steel towers of Manhattan or San Francisco. ...My thesis on India’s Internet space has not changed since I first started investing in the country in 2008 – optimistic about the long haul but cautious in the near term.  ...Most of the larger dea...

Cross posted from the Entrevista Blog Interview with Ganapathy Subramaniam, Founding-CEO of Bangalore-based semiconductor tech company Cosmic Circuits. (Cosmic was acquired in early 2013 by Silicon Valley-based, Nasdaq-listed electronic design giant Cadence.) The interviewer is fellow entrepreneur Chandu Nair. The Podcast can be downloaded from here . (Use Right Click > Save As to save the file to your desktop) Highlights Reading the Wind How Ganapathy, as part of visiting customers in October 2012, realized that Cosmic Circuits could no longer remain an independent company. (Its customers and partners wanted a strong Number 2 player in the segment to provide a balance to the Number 1 player, Synopsis.)  Making the company Due Diligence ready How Cosmic's decisions to rope in a Big 4 audit firm (just five years into its existence) and go in for an ISO certification, stood it in good stead when it came to due diligence at the time of its acquisition. ...

Cross Posted from the Venture Intelligence Entrevista blog : Latha Rajan & K. Pandia Rajan of Ma Foi ( B i o s ) In conversation with K. Satyanarayan , Co-founder of regional language publishing firm New Horizon Media. (Recorded on August 15, 2012 in Chennai.) Highlights: Takeaways for Other Entrepreneurs: (Click on the links for the video segments) Don't add artificial constraints when it comes to entrepreneurship KPR: Separating home and work, politics & business - we tend to have many boundaries where none need to exist. These are Western notions and mind blocks that we can revisit. Being a Husband-Wife Entrepreneur Combination was never a major hassle for us. In fact, as Latha says often, we would have probably fallen apart but for Ma Foi! Latha Rajan: In the early days, he used to travel 25 days a month and I used to travel 10 days a month. But since I was there within the system, I could understand (the pressures and issues). Both of us knew what we were workin...

Cross-posting from the Venture Intelligence Entrevista series: Lessons from the Startup to Scale-up to Successful Sale of iMetrex Technologies, a building technologies and security venture catering to the Indian enterprise market - The Venture Intelligence Team Rajeev Mecheri, Managing Director, Mecheri Smart Capital ( Bio & LinkedIn ) Interview by Hari Krishnan of Venture Intelligence, followed by interaction with students at the Department of Management Studies IIT-Madras on November 9, 2011. Highlights: Please click on the links below to view corresponding video snippets: Importance of Customer Touch Point “What works for the company, works for you (the founder)” Founders should separate their lifestyle needs from that of the business Invest Appropriately - in infrastructure, etc. Decision to exit and the "strength of a brand" Decision to integrate vertically (getting into manufacturing) Following the Customers Innovative holding structure for acquiring a product co...