According to the Business Standard and research firm IDC, the majority of Indian Web 2.0 sites have no real business model and are struggling for both revenues and investments:
It’s a shiny, new dance floor, but how many can dance? The Web 2.0 market in India is still struggling for direction and funding, though the start-up scene in the Indian consumer space has been vibrant. Yet, the number of Web 2.0 companies focused on the enterprise or business space can be counted on one’s fingers.
A majority of players are active in areas like social networking sites (SNS), blogging, and document and multimedia sharing in the consumer space. A mere 12 of the 67 India-focused websites studied by research firm IDC have a clear enterprise or business-driven model to their operations, while 55 have a consumer focus.
Interesting article given the shear hype around the Web 2.0 phenomenon. Food for thought. The reality is that Web 2.0 technologies will become an integral part of doing business on the Web and only a few sites dedicated to exploiting the phenomenon as one will survive. Good luck!
Read the full article here.