The future of Indian Web2.0 start-ups – Will they be successful ?


Recently, I am seeing more and more start-ups coming out of India and making their mark felt on the global scale. Most of these start-ups are online and technology oriented offering unique online services. In last couple of years, Web2.0 has slowly but gradually caught up in India. Infact, there are a few who are even talking about web3.0, but I really doubt if 20% of Indians (who browse the internet) even know about web2.0. I think we still have a long way to go. The market for online services is still huge in India considering the meagre Internet penetration. Anyone having an unique idea, that is India related, innovative and useful has very high chance of being successful. There are people across the web, who are comparing the current trend with the online boom/ burst back in 2001/02 and forsee that this trend is heading in the same direction.

I overwhelmingly disagree !

There are a lot of differences in online world back then and now. First and foremost, enterpreneurs have learnt their lessons from the last burst. There are less chances they will repeat the same mistakes again. Second and most important, Venture Capitalists are wiser than ever before. They have gone through enough cycles of failure and will not touch any project that does not hold water. India Web2.0 LogoThey scrutinize every bit carefully now. Third, the current trend is based on social networking. Most of the start-ups are now flexible to accomodate the consumer wishes. You will see every start-up having a blog. They are transparent in what they do and offer. They have a continuous dialogue with the user groups and have much better understanding of what the user wants from them. There are many more reasons, but these three itself will ensure the survival rate to be much higher.

Sure there are going to be some failures, but it is not going to go burst completely. There are high chances most of them will succeed, if they know the pulse of consumers and what they want.

Earlier, I mentioned that the idea should be India related. There was a reason why I said that ! If you are a regular reader of this blog, you might have read my posts on India’s GDP growth, economy, consumer earnings et al. Each of these posts goes to show that India and its people are on a huge growth path. There are millions of users who have not even experienced the tip of the iceberg of this online web2.0 revolution. Everyday, hundreds and thousands on new young people are getting the taste of Internet and getting hooked to it. Although a large population of young Indians know only ORKUT or desitorrents or rediff or Indiatimes or debonairblog, as they mature they will be the consumer of the services that people are starting to offer now in the world of Web2.0.

There are hoardes of Indians living abroad wanting to return back to India, especially the enterpreneurs who want to make a difference and create their mark. They are the ones who are in a advantageous position. They have lived in western countries and seem to have a fair bit of idea of where India is heading towards. Most of the Indians I meet here in US are itching to go back and start something on their own. They do not want to miss the action happening back in India.

I am setting up poll to know what the readers feel about the Web2.0 start-ups in India.

Thanks for participating !

  1. John R says

    Hey, I work for it’s great 2 see our website listed all over the internet. Wish to see our second huge website on such lists.
    Great going dude, thanks again
    John R Wendwell

  2. Admin says

    Thank you Shubham for letting me know your view. I agree with your view point partially. The thing I agree is that most of them are trying to imitate the US counterparts, which is good only to a certain extent. The seed idea in all probability will be same, but after that it has to be Indianized to suit the Indian audience. As mentioned in my article, if it has a Unique Indian flavour, it will catch on…It may not be fast though as it is here in US though. Even today, India is still lagging behind in Internet usage, but it is growing rapidly and this is where I am betting on…..

    Along with uniqueness and India related theme, the WEB2.0 start-ups should be big on patience. Most of the ventures are folded at first sign of struggle.

  3. indya says

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  4. Shubham says

    I think some Indian startups are going to make money but most of them are going to go bankrupt. If you have a look at the current Indian web 2.0 sites, most of them are based on US idea like youtube, social networking etc. Most of these sites are not able to get enough resources to make people shift from the US counterparts. Only some sites like are able to get some share of their US counterparts like Reddit.

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