Today’s 353rd FREE online 1Mby1M roundtable for entrepreneurs is starting NOW, on Thursday, May 18, at 8:00 a.m. PDT/11:00 a.m. EDT/8:30 p.m. India IST. Click here to join. All are welcome!
Today’s 353rd FREE online 1Mby1M roundtable for entrepreneurs is starting in 30 minutes, on Thursday, May 18, at 8:00 a.m. PDT/11:00 a.m. EDT/8:30 p.m. India IST. Click here to join. All are welcome!
Analysts may have forecast lofty growth for Indian e-commerce till some time back when they forecast an industry worth $60-$100 billion by the year 2020. But recent reports suggest that the medium-term future may not be as rosy. After recording a stellar 180% growth in 2015 to $13 billion, the industry grew a modest 12% last year to $14.5 billion. The slowdown has caused some of the Billion Dollar Unicorn club members in the sector to delay their listing plans.
Rizwan Kassim: There’s also a term in telco called breakage. If you sell 500 minutes to someone at two cents a minute, they don’t necessarily use all 500 minutes. That helps with forward pricing. We spent a lot of time on what sort of message communicated best with first-generation Indians. We used people we knew. This was the time when A/B testing was considered new technology.
Sramana Mitra: Why did you decide to move on from this business or put this business on lower gear? It sounds like you switched gears to something else. >>>
Sramana Mitra: How does your audience compete, especially on the logistics end of the spectrum where Amazon is just delivering unbelievable levels of service?
Mark Lavelle: The A-word is a big deal. Amazon has changed forever what consumer expectation is in terms of getting a product.
Sramana Mitra: Totally. >>>
Launched in 2010, Freshdesk is a proud flag bearer of India’s presence in the global cloud CRM space. Six months back, it raised $55 million at a valuation of $700 million. This takes its total funding to $149 million. In a recent interview, founder Girish Mathrubootham has said that he plans to do a multi-billion dollar IPO in two-three years. Freshdesk was incubated at 1Mby1M, and I have a tremendous soft spot for the company. Girish has since emerged as a hero for the Indian entrepreneurs, and Freshdesk is now India’s most celebrated product company, hoping to become India’s first billion dollar SaaS success story. A Unicorn.
Is raising this much money a good idea for the company? Perhaps the best way to answer this would be to compare its journey with that of rival Zendesk. >>>
Sramana Mitra: We should probably step through that. That’s your first technology entrepreneurship, right?
Rizwan Kassim: That’s the first one that hit any sort of scale.
Sramana Mitra: You started that in the 2006 to 2007 period?
Rizwan Kassim: The company was founded in 2006. >>>
Sramana Mitra: Clearly, there has been a massive explosion of niche e-commerce. Platforms like Magento as well as a few others that we have covered extensively have played a big role in enabling these companies and built very substantial e-commerce companies. One of my observations is that the bar is going up in terms of the user experience of e-commerce. When we started, it was just being able to buy from a website. Now people are differentiating with a lot more personalization, recommendation, and user experience that is vastly more complex to deliver from a platform point of view. That’s one the trends that I see. How do you see where we are today and what the needs of the market are? >>>