What’s your take on modern HR startups? [Example to reader, like Aasaanjobs]. What are these startups doing right and doing not-so-right?
Doing right – "They are trying to serve a niche as a very specialized company serving jobs to targeted segment of job seekers (for example how Aasaanjobs focuses on the entry level and blue collar job seekers), this can help to better target and acquire an audience."
Doing not so right/has his doubts – "Since it’s going to be a niche business, it’s also not going to be as big as a company that will serve the entire spectrum of consumers possible. This means opportunity for revenue generation will also be limited. In a business like ours you need to have enough sales people to make sure that the deals are closed and more business is being funneled in. Conversely it’ hard to support a large enough sales team if you’re not generating enough revenue."
Is Naukri.com just for white collar jobs? "No, Naukri is open to listing jobs at all levels from entry –level to blue collar to white collar. We didn’t want to restrict how Naukri will grow, we wanted the business to evolve on its own."
Very early on in your life you had decided that you will not be dishonest in your dealings. Business is not without its share of corrupt and brutal qualities. How did you manage to stay honest all these years?"Look, what does it mean to do honest business? It means to abide by the laws and regulations and to pay your dues on time. It’s perfectly possible to do that while building a business, running a business and running a business successful one at that. And we have managed to do so all along."
You still expect Zomato, 99Acres and Naukri to play for the future?
"We still do. And add Jeevansathi to that list, it has just turned profitable. We don’t own Zomato, we are only an investee company [Info Edge had a majority stake in Zomato back in 2013, it has gone down to just under 50% in recent times]. But yes they [Zomato] are progressing well, and have made quite a few acquisitions in recent times.
Different sources will analyse the situation differently. But for us Zomato is on the right track."
Three top things you look for in a potential investee company1. Whether they are solving unsolved problems – new innovative products
2. The market structure in which the product/company will be operating in – what and who will be their competition, stickiness of the product and strength of the Intellectual Property claims
3. A good quality team
If pushed to pick, he says the most important out of the trio would be team. “If the team isn’t doing so well then it most likely will not matter how attractively poised the other two points are, no matter how important they are to making a final decision
And there are quite a few business plans and pitches to choose, review and consider. We look at about two hundred to get one business we would like to invest in. Info Edge gets about three plans a day."
Why would you write off a company?"We would write it off if we are not seeing returns. If its current value it’s is far below the original value that was placed on it then it’s time to say good bye."
How long do you wait before a write off? "We know in usually three to four years whether it’s going to pay off or not."
In your opinion what’s the one thing Indian startups should do to become long lasting and sustained?"Have happy customers."
Would you ever consider buying Twitter if you had the money?"We would have to consider points like whether we would get an ROI on our investment before doing so."
[Since its inception, Twitter hasn’t been profitable.]
BW Reporters
Regina is a reporter for BW Businessworld. In her previous assignments, she has worked with Independent television Network as a news anchor and reporter in Sri Lanka
