VCs Expect India To Do A China In Internet Business

LA Times (Reg required): The booming Indian online market has come to the notice of the international media. The original article in The Financial Times is reprinted at LA Times. It says the VCs who are rushing to India expect it do a China in terms of the consumer internet growth. As of now, Indian internet companies are currently in the range of $10 million (except Indiatimes and Naukri whose revenues could be in the range of $20-22 million) as against China which has a dozen consumer internet companies “each generating at least $100 million in revenue annually, as a model for India’s future”.
“People often think of India as five years behind China,” said William Bao Bean, a regional Internet analyst for Deutsche Bank in Hong Kong. “For the last 12 to 18 months, there’s been a huge influx of venture capitalist funds following the experience people had in China.” WestBridge Capital Partners, Norwest Venture Partners and others like Sequoia are betting on a China 2.0 in India.

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