Summary of Proposed Investment
Project Number
10934
Company Name
Webdunia
Date SPI Disclosed
Jun 6, 2001
Country
India
Industry
Telecommunications and Technology
Projected Board Date
Jul 16, 2001
Status
Completed
Sector
Internet Access Providers (Including ISPs, Datacenters)
Department
WBG Digital and AI
Environmental Category
C - No Impact
Previous Events
Approved : Oct 1, 2001
Signed : Mar 15, 2002
Invested : Mar 29, 2002
Project Description
Project description. Webdunia is the leading provider of web-enabling technologies and content/media services in Indian languages. Since inception in April 1999, the company has built a strong position in both the enabling technology and the media services components of the business and employs 125 people. Webdunia offers a variety of Internet-based software applications for corporate partners and individuals, including webmail (590,000 users as of May 31, 2001), a transliteration engine (transferring Western characters into Indian languages via standard keyboard), search engines, e-greetings, discussion boards, and chat, in a total of 11 Indian languages. The company operates portals in four languages (Hindi, Tamil, Telugu, and Malayalam). In addition, it provides customized language-enabling services and content to corporate clients and government.
Developmental impact. Webdunia plays a unique role as an enabler of growth for the Internet in India. With only 6 percent of the Indian population (approximately 60 million people) conversant in English, increased availability of content and applications in local languages will be necessary for broader adoption of IT and the Internet. This will have a positive impact on delivery of social services and e-government, corporate productivity, and strengthening of local cultures. Through the project, IFC has the opportunity to support this critical component of the IT infrastructure in India – and play a catalytic role in increasing Internet access to the large majority of Indians who do not speak English.
IFC Role. The proposed IFC participation in the project would help bring strategic and venture investors to the company during a period of severe pullback in investment activity in early-stage companies in India. The impact on technology firms with an India-centric revenue model has been particularly harsh. Potential strategic investors have indicated that IFC’s participation in the round will enable them to invest. In addition, IFC’s participation would raise the profile of the company and assist in customer acquisition on both the corporate and government markets. Finally, the project will provide an important precedent for local language-based business models which can address the need faced by many IFC client countries for local language software applications and content. The company’s platform is highly adaptable and could be taken into other markets with phonetic-based writing systems.
Developmental impact. Webdunia plays a unique role as an enabler of growth for the Internet in India. With only 6 percent of the Indian population (approximately 60 million people) conversant in English, increased availability of content and applications in local languages will be necessary for broader adoption of IT and the Internet. This will have a positive impact on delivery of social services and e-government, corporate productivity, and strengthening of local cultures. Through the project, IFC has the opportunity to support this critical component of the IT infrastructure in India – and play a catalytic role in increasing Internet access to the large majority of Indians who do not speak English.
IFC Role. The proposed IFC participation in the project would help bring strategic and venture investors to the company during a period of severe pullback in investment activity in early-stage companies in India. The impact on technology firms with an India-centric revenue model has been particularly harsh. Potential strategic investors have indicated that IFC’s participation in the round will enable them to invest. In addition, IFC’s participation would raise the profile of the company and assist in customer acquisition on both the corporate and government markets. Finally, the project will provide an important precedent for local language-based business models which can address the need faced by many IFC client countries for local language software applications and content. The company’s platform is highly adaptable and could be taken into other markets with phonetic-based writing systems.
Sponsor / Cost / Location
Development Impact
Related ESRS/ERS
Contacts
For Inquiries About the Project, Contact
Daniel Crisafulli, Investment Officer
E-mail: dcrisafulli@ifc.org
E-mail: dcrisafulli@ifc.org