VC-backed IPOs may cross $ lb mark this year

IT look Deep Kalra ten long years to trans form travel portal MakeMyTrip.com from, just another 'bright idea' into a company with a billion dollars in market capitalisa tion. But even at the half way point of thejourney, he was desperate for a mere $9 mil lion. His first VC, eVentures, had abandoned him in 2001, and only in October 2006 did he manage to woo Heiion Ventures to in vest that amount. "Those were difficult years," recalls founder and CEO Kalra. But today, 30 days after it completed a $70-million IPO on Nasdaq, MakeMyTripis trading at $32 a share over the listing price of $ 14—which takes its market capitalisa tion to $ 1.1 billion. Both entrepreneur and the VC investor have finally seen results.

Starting this January, six such VC-backed companies have raised $615 million in ini tial public offers, in India and abroad. And this is just the beginning. At least five more companies are likely to raise over $400 mil-ion before December. In all, funds raised through VC-backed IPOs will cross the billion-dollar-mark this calendar year. This is a significant landmark — a sign that India's VC-funded entrepreneurship ecosystem,seeded a little overa decade ago, may finally be nearing its first real harvest season.

Is the dotcom craze back?

For a bubble-wary internet observer, some of the indicators may seem ominously similar to the dotcom boom. But 2010 is no 1999.

These are tough times for the US equity market. The fear of a double dip recession looms large. Investors are wary and quick to punish stocks for the slightest hint of shrinking margins or slowing growth rate. Nothing sur-prising; investors are still licking the wounds caused by the recent crisis.

But then how do you explain Make-mytrip.com? On August 12, the online travel agency got listed in Nasdaq and raised $70 million from an initial offer-ing of five million shares at $ 14 each. On the first day of trading, the share price rose 89 percent. In the days that followed its market cap crossed a billion dollars. Investment Web sites called it the hottest IPO since 2007. Now, here's the interesting
part: The company has not made a single penny in annual profits so far. It lost $6.2 million in 2010, $7.3 million in 2009 and $18 million a year before, on revenues of $32 million, $19 million and $14 million,
respectively. Makemytrip.com may be among the most talked about companies in the Internet space in recent times, but it is not the only one.

Travel Trade deploys complex marketing tools

After the acquisition of ITA Software, the flight information software company, by Google in a $700 million deal, -II spoke to Kiran Mani, Head of Sales, Google India, to find out about web tools to promote travel options online. With phenomenal rise in online search for travel options coupled with the enhanced will-ingness to transact online,the travel trade has deployed a plethora of

simple and complex web tools to market their entire range of small weekend packages and expensive luxury packages online.

"The travel trade has now moved to a more matured set of web tools for strategic online engage-ment, as the traveller across the globe is no longer merely searching for online travel options, but is also willing to undertake expensive deals online."

After the acquisition of ITA Software, the flight information software company, by Google in a $700 million deal, -II spoke to Kiran Mani, Head of Sales, Google India, to find out about web tools to promote travel options online. With phenomenal rise in online search for travel options coupled with the enhanced will-ingness to transact online,the travel trade has deployed a plethora ofsimple and complex web tools to market their entire range of small weekend packages and expensive luxury packages online.

"The travel trade has now moved to a more matured set of web tools for strategic online engage-ment, as the traveller across the globe is no longer merely searching for online travel options, but is also willing to undertake expensive deals online,"

Want to get away for the weekend?

Want to get away for the weekend? Check out the twonights, three day package to the City of Lakes, Vdaipur. The deal priced at 73,799 is inclusive of accommodation on twin-sharing basis, breakfast, transfers and sigh-tseeing in an air-conditioned Indica. The trip starts with a boat ride on the Lake Pichola after which you will be taken to the beautiful Sahe-lion-Ki-Bari and Maharana Pratap Smarak.

The deal also includes a visit to the Museum of folk Arts, the Vintage Car Museum with Arvind Singh Mewar's private collection, the City Palace and the Crystal Art Gallery. For more details log on to www.makemytrip.com.