Indian Internet Challenges

Continuing on the theme from yesterday’s post, some numbers about Digital India and the Indian Internet:

  • PCs: 30 million (growing 8+ million / year), equally split between Homes, SMBs, Large Enterprises+Govt
  • Internet: 50 million (growing 10+ million/year), with 6 million broadband (256 Kbps) connections. About 50% access from cybercafes
  • Ads: Rs 700 cr ($150 million; 3% of media spend)
  • Transaction drivers: Tickets, Trades, Matrimony

The reality is that it is hard to make money on the Indian Internet.

  • Top 4 Indian portals losing about Rs 150 cr a year
  • Largest Indian Net co (InfoEdge) sales growth slowing
  • Need to look beyond Advertising revenues, but few clear options
  • Flat-priced Broadband (Rs 250-500 for 1 Mbps) availability is still very limited

Published by

Rajesh Jain

An Entrepreneur based in Mumbai, India.