Prolific angel investor, MD of Google India and all around nice guy, Rajan Anandan was at the accelerator yesterday to meet our startups and other investors. He mentioned a few very interesting stats and trends that he gets to view at a macro level from his vantage point.
- Android is growing very rapidly in India and smartphone growth has hit an inflection point (across all brands). The estimate for Indian smartphone growth is there will be 40+ Million new smartphones (of all types) overall this year sold and that compares to an existing base of 25 Million smart phones. So, 65 Million smartphones out of a total of 600 Million unique phone users in India. By 2020, over 350 Million phones will be smartphones in India and most of them will be connected (Compared to only 25M connected smartphones in 2012).
- Large brands (not digital companies like eCommerce and others) are now beginning to bring their brand campaigns online and digital is complementing TV and print in a significant way. Over the next 3 years brand spending will move to digital in a meaningful way.
- SMB spend online accounts for a small 10% of advertising spend online, but is growing dramatically. Given that some estimates put the # of SMB in India to be 45 Million, even 20-30% of them going online in the next 7 years is a dramatic increase in # of SMB websites in India.
- Video will be a key driver of brand advertising in India. While search is a very powerful performance medium, YouTube has grown by leaps and bounds in India and is also strong growth engine.
What does this mean for startups?
- Companies focused on getting SMB’s online with a simple and easy to use product will do well he said.
- Since the number of English speaking Indians is much smaller than Indic languages, indic language focused startups will have a very bright future
- He also was bullish on the Indian eCommerce market, given that FDI in retail will be addressed at some point of time. Companies that have the wherewithal to last the next few years and grow profitably will be ripe for acquisition in a few years.