Comments on: What’s going on with Rediff?

By: Himanshu Pandya

Himanshu Pandya — Wed, 28 Jun 2006 17:41:31 +0000

That is exactly what I am saying UKN. That they need to invest in local content. I also mentioned that they will grow by default due to the huge growth in Indian internet users. The reason I used Sify as an example is b/c they are investing in local content and opening city specific portals as well as broandband site with a lot of content (SifyMax). I am not sure what Rediff’s future portal strategy is?

By: UKN

UKN — Wed, 28 Jun 2006 01:29:51 +0000

Agree that valuation of Rediff is stretched. A company with revenue of 3.57 million cannot realistically have a market cap of 357 million!. But the key point that you and most other western analysts miss is the importance of local content. Have you ever looked at Yahoo India or Google to search or read news for local information? Yahoo and Google may be global brands, but Indians – however English educated they are – would rarely use them for information about their specific local towns. So I believe rediff will always have it niche advantage. What they really should focus on is how they can generate revenue. Traffic at their site will always be high – so no problem there. They should probably focus on online product sales more. Buying from Internet is very much new to average Indian. Perhaps they could have a tie-up with major Retail shops and become an Indian Online retail powerhouse!

By: sf

sf — Tue, 27 Jun 2006 14:12:11 +0000

totally agree on the fundamental analysis. rediff can be rated as junk status if it was a bond. the content is totally useless. ibnlive.com provides excellent news coverage