
Dhiraj Kacker
Dhiraj is CEO & Co-Founder of Canvera.com, an online Digital Photography company based out of Bangalore.
This idea is very important to understand and in the context of VC funded companies has a non-trivial impact on capital efficiency, scalability and therefore returns.
Apple is the epitome of vertical integration owning the end to end supply-chain including the consumer touch point and Google is the epitome of crowd-sourced development: throwing stuff on the walls and letting users vote with their time & money on what sticks and what does not.
At Canvera, we concluded that managing cash (not COD) and encouraging online payments through debit and credit cards was most suited for our business.
With present-day low levels of per-capita consumption, domestic consumption in India will continue to grow for decades and companies that address the India market at its own terms rather than following copy-cat business models are the ones that are going to capitalize on this growth.
The COD payments business is a services business and in order for the math to work, it needs to quickly transform to a products business, i.e. be replaced by an electronic payments system.
LTV and corresponding customer acquisition costs help determine long-term financial viability & strength of the biz.
Different economies offer different types of challenges; some of the challenges can be overcome by good execution, good timing and intelligent allocation of capital but some are out of the control of individual companies and depend more on the operating environment.
Believe it or not, technology may help us solve various problems in ways that take into account the dynamics of India.
Hidden costs often lead to unproductive capital lock which could have gone into business development.
JOBS
- Associate - Red Fort Capital Advisors Pvt Ltd
- The Private Equity Associate - Nereus Capital
RECENT COMMENTS
- 21 May 2013PhoenixonWell said Varadha. This comment of your is unclear, " LPs ought to maintain an arm's distance from GPs and...
- 21 May 2013AnooponThe biggest problem in Indian PE fund GPs is Ethics. They want Day-One-Carry rather than long term carry. There should...
- 20 May 2013varadhaonExits are not happening because a lot of businesses that PE funds invested into were not worthy of investments in the...
- 17 May 2013Santosh VermaonMohanjit, You have the ability to say something that can be said in 100 words in 5,000 words. Congrats on a well...
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