The internet craze is back!

Looking at the newspapers in India these days, you would be forgiven if you felt a sense of deja-vu.  An internet gold rush, new models coming up every day, massive PE investments, fresh millionaires… did we just get transported back to Y2K?

Yes and no, it seems.  Yes – because the stories and the mood are the same.  No – because the underlying activity is a lot more real this time around.  Business models are built on revenue models.  There are now more than 80 mn internet users in the country.  Among the more attractive consumer segments (SEC A and B), internet penetration is near total.  A true web-generation has emerged.

How will is this panning out from a business perspective?  Well, travel has already moved online with a vengeance (perhaps repaying us for all those long hours we spent in queues trying to get tickets) – when’s the last time you didn’t buy a ticket off the net?  But that’s not the only segment.  Snapdeal claims to do 10,000 transactions a day (and are now in the market to raise 200 Cr).  Flipkart (valued around a 1000 Cr)  is rumoured to do revenues of 75 Cr.  If that sounds small –  compare that to the 200 Cr odd that Crosswords and Landmark make after dozens of years in the business.

The party’s just begun – and barring another recession, we’re certain to see mind-boggling levels of activity in this space.  And hopefully, we won’t be experiencing a sense of deja-vu in 2021!