Avnish Bajaj, founding managing director of venture capital fund Matrix Partners India, has always been critical of Web 2.0, especially the social networking business models, in India. In an interview to The Hindu Business Line, Bajaj has again raked up the issue of relevance of the social networking websites in the country. “I think people are wasting their time on Web 2.0 in India.” That’s a harsh statement on a lot of folks who are trying to develop businesses out of sites like Yaari.com, MingleBox and Desimartini, a new kid on the block.
Bajaj added: “People talk about the Internet being convenient, but it is not so in India. You need to go to a cyber café or you have to dial up a telephone line or use a slow broadband connection. Whereas in the US, 150 million households have broadband access all around the clock, sitting at home. When you have such a situation you can do social networking, but where is that happening in India? Do you think a person will go to a cyber café or any public environment to discuss everything about their life?”
Bajaj’s point is that Indians may not need a platform for social networking yet. Indians culturally are not loners. He said: “Yes, there is a cultural barrier, as not many individuals will express themselves as in Myspace.com.” Besides, there are infrastructural barriers. So what is Bajaj’s point? “Fundamentally it is not about social networking but about community building. In India one needs to first create a product according to people’s needs and subsequently a community will form around it. An example would be Seventymm, which solves a need. We are building a community product around it,” Bajaj concluded.
Bajaj’s firm has, in fact, been investing in “low hanging fruits” like a Chinese food chain (Yo! China), digital signage company (vJive), and also the online DVD rental company Seventymm.com.