Internet in India

There has been whole lot of advances in this space since we last reported about it.

More players have entered into this space since then. Madhouse, Moviemart to name a few.

Madhouse has been a phone based rental service operating in Chandigarh (based out of Delhi ) for past one and half year and have now gone online with services extended to Delhi/NCR. Moviemart also confirms the market for Online DVD Rentals by moving its 100% offline store to online rentals. The trends in this space are quite positive as some earlier entrants (www.cinesprite.com, www.seventymm.com) are becoming aggressive in marketing, have improved their service levels, have gone for second round of funding etc.

Just to comment on Cinesprite, they are leading the pack as far as Delhi/NCR is concerned and currently promise a large range of titles and very good service levels. I asked for a title and they added it to their collection in a short span of time.

It is definitely becoming one sticky service with switching barriers coming from the movie collection, pricing and other website related features. I haven’t tried others (as I mentioned, it’s a bit sticky) but recommend others to try out Cinesprite.

Since I started using the service a couple of months ago I feel that online DVD rentals hold a definite advantage over the local DVD rental shops. I can search for the available titles, The quality of DVD’s are better, can maintain a queue of DVD’s that I want to watch, return it as per my schedule, no extra charges for keeping it one more day and moreover can request a DVD if it is not available in the collection. The only drawback I find is that they would only provide titles that are legally available in India unlike the local DVD rental shops.

As far as the competition amongst the online DVD rental companies is concerned I think it will all boil down to who has more titles, better deals, better DVD quality, timely deliveries and pickup (quality of service) and better promotional and marketing campaigns.

Challenges - mindset of people (as we last reported it) is difficult to crack and we would love to hear about this from one of the online DVD rental company. These companies surely have been successful in gaining some momentum by breaking such mindsets (or it is the adventurous lot of people - who jump to try out any new service that starts). It will be great to see and to imagine the growth these guys can have if they are successful in delivering on this front.

Now this one’s a cool ajax based site intended to help users track their debts and loans.
A startup not neccessarily in India but started by Indians in US, Buxfer.com, which is in Beta right now offers an awesome(gmail like) interface. Following functionality is available:

1. Buxfer home page:
* Your Net Balance, the sum of group balances and contact balances
* “News”, aka notifications
* The transaction-line-view of the five most recent transactions you have participated in

2. Report Transactions
Use the new transaction page to report a new transaction, either as a shared bill,
a lend or settle loan (also called ‘money transfer’), or a personal expense.After you press ‘Next Step’, Buxfer automatically suggests the groups that can be applied to the transaction.

3. Transaction Detail
Use the full transaction detail page to see the transaction details including the amounts paid, received, or spent by all the transaction participants, the amounts that the transaction participants owe or receive, the previous edits, and the comments posted to the transaction.

Contacts:
Use the manage contacts page to add new contacts, rename contacts, view contact balances, and view transactions with individual contacts.

Tags:
Use the tag details page to rename or delete a tag and to see the transaction history for a particular tag.

Groups:
Use the group details page to see the group description, group balances of the members, and a history of transactions posted to the group. There is also an option to filter group transactions based on which members participated.

Buxfer.com has been started by Amit Manjhi (he’s my batch mate from IITK, makes me feel proud of my Alma Mater), Ashwin Bharambe, and Shashank Pandit.

They have almost copied the gmail interface. The site looks professional, with nice layout and smooth interface, the site is better than most of the web 2.0 startups coming in India,which are backed by a huge venture fund and product managers with industry experience.

Here’s what they have to say about it:

Buxfer started as a small script one of us wrote about 3 years ago. As graduate students, having food almost always meant eating out with a bunch of fellow sufferers somewhere on Craig Street. With such a high rate of accumulating bills, our memories and scraps of paper were just not enough. So we wrote a small simple script to keep track of our debts. And boy, did we love it! Well, we thought maybe the others would find this useful too.

The homepage claims to be tracking “$416544.70 in 2178 transactions.” and yes, users can use the FaceBook account to log into the site.

I am not too sure who came first BillMonk.com or BuxFer.com, but feature wise BillMonk.com, offers more in terms of allowing to track borrowings of Books, DVD, CDs etc, but the interface of Buxfer.com is better.So, You already have some competition here!

Here are some of the facts and figures about internet consumers in India, the numbers have been compiled from different sources and research papers. For all those people who want to aim e-shoppers for their business, these statistics would give you a launching point.

Total online “Active users” (as of September 2006): 37 million. Source

Total online “Active users” estimate: 100 million by 2007-08. Source

Total market potential: Expected at Rs 2300 Cr by 2006-2007

Age group:

18-25 : 25%

26-35 : 46%

36-45 : 18%

What is selling?

Books, Electronic goods, Railway tickets, Apparel, Gifts, Computers and peripherals, Airline tickets, Music and Movies, Hotel rooms, Magazines, Home tool and Products, Home, Appliances, Jewelry, Movie Tickets, Beauty Products, Health and fitness products, Gift Certificates, Sporting goods.

How much are they spending?

Rs 500-1000 – 25%

Rs 1000 – 5000 – 39%

Rs 5000 – 10000 – 13%

Rs >10000 - 11%

Apart from that the total investment in 2006 is likely to be $6.3 billion, a number that is more than five times the amount invested in 2000. Source

While India rides the VC wave, it’s the best time to innovate, raise a VC investment and execute. Like most other good things even this will come to an end, so even before the “Bubble 2.0” is pricked lets just make some good use of it.

There’s a very inspiring google video on “Leveraging India as India stands up” where Prof. Ashok JhunJhunwala talks about the different opportunities India has to offer.

Note: I would publish more of these statistics on a day to day basis, you can also get the research paper from IAMAI website

I’ve been hearing whispers that Google will integrate their social network Orkut with the mobile social networking app they acquired last year, Dodgeball. While it’s not rocket science to make the connection between the two products (both are social networking), the reasons to join the two are becoming more compelling… via ReadWriteWeb

Well, if this could happen in Brazil, India would be the next. So, Yaari.com needs to make it’s mark before Google comes with it’s offering.

Somehow managed to get access to Yaari.com through a friend’s ID. So here is a screenshot depicting the very obvious features of any social networking site.

Unlike Fropper, this site is free. The obvious question is how does a free social networking site survive, online advertising?, no, Prerna Gupta - CEO yaari.com is smarter! (our absolute faith in this, forced us to think and led to some more research).

So here are the screenshots that strike the chord.

The revenue comes from sms, tie up with Mobile Carriers in India, get a part of money user spends on receiving an sms (the standard rate in India is approx Rs.5 per sms, and typically carrier would not mind giving a rupee to a partner) from web and cash in on the volumes.
Smart as it might seem, but again the “Idea” in itself isn’t at all original. Yaari.com appears to be inspired by SMS.ac (A San Diego based Social Networking company with a registered user base of over 50 million in over 180 countries - Source). Sms.ac has more features than yaari has, but then they are moving in the right direction. Alerts and SMS messaging itself would amount to a lot of revenues.

Seems, Yaari.com has come up with an indianized version of SMS.ac. But that’s what has been happening in the consumer internet market in India. SMS volumes in India are unbelievably high, Just to give us a hint

“60m sms messages were sent new year’s eve in India in 2005 -Source“

M-Ticketing, a lot has been happening in this space. Here are some companies operating in this space in India.

ConvergeLabs
Funding $11 million
Key Investors: Walden International, Anthellion Capital, Global Catalyst Partners, Dot Edu Ventures, GVFL M-Ticket, ConvergeLabs’ leading application, allows mobile users to buy tickets from their phones. Instead of standing in long lines, concert and theatergoers get a special barcode on the screen of their phone, which they swipe over a scanner at the event to gain entry. –Source: RedHerring

Then there’s Moveo:

Moveo

Seed Funding $1 million

E-ticketing will soon be passé. M-ticketing is going to be the rage. M-ticketing (tickets on the mobile) is one of the applications that Moveo, the latest Indian start-up in mobile applications is coming up with. –Itwire

PVR Plans to roll out m-ticket

Indian Airlines, Spice, Indian Railways and others are coming up with m-ticketing.

Despite all this buzz about m-ticketing TicketPro (MNC having prensence in many countries) has recently started operations in India under the name of MovieTell (The reason I liked this particular site is that they have a cool Ajax based interface unlike ugly TicketCounterIndia). Why?

Because there still remains a lot of potential in just the movie e-ticketing space. The shear volumes of movie tickets sold in India make it possible.

Even at a pessimistic estimate of just 30 percent of the showcased numbers, it’s possible to sell Rs.1 billion worth of movie tickets through online sales.”
–IMAI

And if still somebody is not convinced with the figures have a look at these Google trends:

Top cities searching for “online movie tickets” around the world:
1. Hyderabad, India
2. Chennai, India
3. Bangalore, India
4. Mumbai, India
5. New Delhi, India
6. Delhi, India
7. Raleigh, NC, USA
8. Reston, VA, USA
9. Calgary, Canada
10. Denver, CO, USA

Indian cities top the charts.

The reason is simple not all multiplexes or cinemas have the infrastructure and volumes to host their own e-ticketing systems as PVR and famecinema have. There is HUGE potential for any web site trying to bring all of them under one hood. A concept similar to Fandango.

This is just the beginning, there still is huge potential here, probably more than m-ticketing which initially would be limited to big players!

Definitely a win-win situation for small Cinema Owners and the consumers.

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