Domain-b has an exit interview with R Ramaraj, the former CEO of Sify. He says he doesn’t regret doing the IndiaWorld deal (Sify paid close to Rs 500 crore to Rajesh Jain for buying a group of sites like Samachar.com and Khoj.com). Ramaraj says:
If the circumstances were similar, I would do the IndiaWorld deal all over again. People saw what the IndiaWorld promoter got. One should look at what Sify gained.
When we first tapped the market, we raised $75 million by diluting 20 per cent of our equity in 1999. Soon after the deal, we were able to raise $120 million by diluting just 1.5 per cent. The issue proceeds were used to set up infrastructure and expand our business.
On why he didn’t look at overseas market earlier, which the current management want to focus on:
Our initial strategy was to build market leadership in India. The accent was on building capacity -
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