05a. BASIC READING - Tech Startups Boom in India

05a.
BASIC READING: Tech startups boom in India, attract big investments

BASIC: Tech startups boom in India, attract big investments
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NEW DELHI, India — India is seeing a huge rise in online startups. New companies are
promoting online shopping, textbook renting and digital marketing. Global investors are
watching closely. They have seen the success of Indian technology firms. Now they are helping
young business owners grow their companies.
Jaideep Manchanda is 32 years old. Four months ago, he quit his job at a newspaper. With two
friends, he started a new company (http://www.aqugen.com/). The company helps other
companies with digital marketing.
Manchanda noticed that Indian firms were not doing enough to reach customers online. He
wanted to change that.
The marketing business is "almost 10 years behind in India," he said. Even the biggest
companies are trying to rethink how they do digital marketing. A lot of companies have no idea
what to do. They need outside help.
The number of internet users in India is almost 300 million. More people are online than ever
before. Because of this, young people like Manchanda think online businesses could make lots
of money.
Many information technology companies opened in India in the 1980s. But these companies
mostly helped Western businesses. Today's new startups are different. They are designed to
offer services to India's huge middle class. Only one quarter of the country's people are
currently online. But this number is growing quickly. Many people are buying smart phones.
These allow more people to use the internet.
Gold Rush
The National Association of Software and Services Companies (NASSCOM) is an Indian business
group. The group just published a new report. It says that India is the fourth largest startup
center in the world. There are more than 3,000 new companies. That number is expected to
reach 11,500 in five years. It is being called a "gold rush."
NASSCOM leader Rajat Tandon said it is time for “people to go out and live their dreams.”
The Indian technology business has reached a turning point, he said. People no longer have to
work for global companies. Instead, they can develop their own ideas. They can work for
themselves and make money. This is an "interesting period for startups," said Tandon.
Indian online companies such as Flipkart and Snapdeal are worth billions of dollars. Flipkart is a
model of startup success. Its worth rose from $3 billion to $11 billion in just one year. That
success has inspired other people to make their own startups.
Online shopping is getting the most attention. But technology startups are exploring many
areas. Some companies are renting textbooks. Others are selling used goods or notebooks for
school students. Still others are helping customers book tickets and find shopping deals.
Foreign Ventures
Companies outside India have also stepped in. They want to be involved in the growing market.
Raghav Gupta quit his job as a sales coach. He started "BlaBlaCar," a ride-sharing service
popular in Europe. The company is based in France.
Gupta said he was drawn to India because of its technology. Many Indians are connected
through social media tools. Some of these are Facebook, Twitter and Snapchat. Facebook has
more than 110 million users in India. Social media is the main marketing platform for BlaBlaCar.
The carpooling company is now open in India. It offered 125,000 seats in its first 100 days.
The service is not limited to big cities like Mumbai, Delhi and Pune. BlaBlaCar offers rides in 700
cities in India, said Gupta. Even in smaller cities like Yamunanagar or Rishikesh, people know
about the service. If they are online, they can use it. Gupta said that BlaBlaCar fulfills a common
need. It helps people "to travel between cities in comfort," he said.
Gupta's last job earned him a lot of money. But India offers help to business owners willing to
take chances. So Gupta quit and started BlaBlaCar.
Many online companies have not yet made a profit. But global and Indian investors are getting
involved. As a result, finding funding is no longer as challenging. In the last year, investors gave
about $5 billion to Indian ecommerce companies.
"Exciting Times"
Sasha Mirchandani started Kae Capital. The Mumbaibased group gives money to new
companies to help them grow. He called these "exciting times" in the Indian business world.
Investors are trying carefully to pick the next "large winners." Mirchandani is an investor in
several online businesses.
China has slowed down a bit, he said. India is the best place for investors because of its large
market. Internet use is increasing, creating more demand for online services.
Among the big investors are Temasek Holdings, Accel Partners and Japan's SoftBank Corp.
They hope that some Indian startups will grow to the size of Chinese startups like Alibaba.
Tandon of NASSCOM said there is huge optimism around the future of Indian startups.
"We have had some really cool products coming out of the country," he said. Startup leaders
are pushing themselves. They want to invent new services for the future.
This excitement is driving many young people like Manchanda.
“It's like one baby step that we have taken, and we have yet to see where we go," he said. "It
keeps the rush inside you."
Investor Mirchandani saw companies like Snapdeal grow "right in front of my eyes." He said
that Indian technology businesses have won respect. They may become an important part of
the Indian business world.
________________
Pasricha, Anjana, Voice of Ameria, (Ed. Newela Staff). (2015, May 06). "Tech startups boom in
India, attract big investments." 06 May 2015. Web: <http://www.voanews.com/content/tech-
startups-boom-in-india-attract-big-investments/2750947.html>.

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This excitement is driving many young people like Manchanda.

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