With 1.5 Billion dollar buy out of YouTube by Google, you can see the zeal in Indian entrepreneurs rising to a new high. Brain Gain Entertainment’s MeraVideo is all set to receive VC funding to the tune of $1.5 Million and hopefully will be the YouTube of India.
Kanwaldeep S Kalsi, founder of Mera Video said that,
“The money, which is for an initial period of 8-9 months, will be spent on infrastructure, bandwidth scalability, manpower and public relations and marketing of the site“.
They are banking on the advertising model to make money. However, Avnish Bajaj, founding MD of Matrix Partners Investment Fund is a bear when it comes to Internet startups in India.
“Internet users in India spend a fraction of the time compared to the US counterparts where such models are successful. The Indian psyche is different. Hence there’s no viral effect and these sites are difficult to monetise in India“.
However, with Wireless Broadband Access Policy in place, one can expect significant YoY growth of broadband users in India.