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Mahesh Murthy On E-com Bubble Bath Being Driven By ‘Topi’ Investors

26 April, 2012

 

According to popular view, it is a second coming for e-commerce in India. This is clearly visible as more than half-a-dozen e-com businesses have procured funds during the first half of this calendar year while VC funds are literally competing with each other to get a large chunk of the pie. However, some investors like to think differently. They feel that investors are going bananas and e-commerce investing is now akin to ‘topi’ investing — a balance sheet game where one investor sells the futuristic valuations of its portfolio to another, without any real visibility on revenues or cash flows. In an exclusive video interview, Mahesh Murthy, a founding partner at Seedfund, talks candidly about the current e-commerce frenzy in India. Murthy holds the contrarian view and feels that this surge is certainly not for real.

 


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Mahesh Murthy On E-com Bubble Bath Being Driven By 'Topi' Investors

Mahesh Murthy On E-com Bubble Bath Being Driven By ‘Topi’ Investors

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5 Comments
Ravi . 5 years ago

I’m a follower of Mahesh, but I’m not sure the point he is trying to drive home here! Appreciate the candid part, but what is this ‘topi’ analogy? Its the (capital) market a.k.a interaction b/w buyers and sellers (of securities) that sets the price. If Mahesh has a problem with that price, he is free to sit out. But then, Im not sure his LPs would like that. BTW – the ‘E’ in e-commerce stands for Electronic, and not Internet! Perhaps Mahesh is referring to the Internet commerce companies, and not mobile commerce etc.

Dhananjay . 5 years ago

This is one in a hundred times that I am seeing an investor with a realistic, practical approach and a different view than the herd of the investing community. The capital as the main differentiator is an assumption done by many investors many times. Do keep on having such contrary views!!

Sameet Mehta . 5 years ago

The good: he’s talking sense.

The reality: as always, some momentum investors will score big time by selling to the bigger idiot (whether that’s the US public markets, an even larger investors etc); as a result, money will always pour into the momentum investors – perpetuating this cycle.

Ravi . 5 years ago

Yahoo! of India is Yahoo – agree. Amazon of India is Amazon – not sure. Groupon of India is Groupon? – definitely not – its a sweet little company called Snapdeal! Aha…there you go Mahesh – you are not always right, na?

manoj . 5 years ago

I guess Mahesh should also speak about his own failed ventures. Giving gyaan is easy, building something in real is tough.

Mahesh Murthy On E-com Bubble Bath Being Driven By ‘Topi’ Investors

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