For the past year, global networking sites have been growing in popularity among young Indians. According to JuxtConsult, a New Delhi-based online research and advisory company, 44% of Indian online traffic uses the Internet just for social networking. Google’s Orkut is the most popular social networking site in India, with a 64% market share. Facebook is also winning many Indian fans, especially students.
But in the last six months, a plethora of local sites has emerged to compete with the Americans. Today, there are more than a dozen India-based and focused social networking sites with colorful Hindi names that are synonyms for community (bigadda.com) and friends (yaari.com). “I guess it’s a cool thing to do,” says Praveen Gandhi, managing partner of Seed Fund India, an early stage Mumbai venture capital fund. He claims in the last year he’s had fund requests from over 50 entrepreneurs wanting to set up social networking sites locally.
India is as hooked on social networking as any other country. Part of the reason is easier broadband connectivity. A 2007 report by the software industry association group Nasscom estimates broadband subscribers — currently 1 million — will hit 20 million in three years. By 2010, the total number of Internet users in India will grow to 100 million, from 40 million now. This will surely enhance virtual hangout plays like the social networking sites.
Another big reason for the rise of social networking sites is simply the size of India’s younger generation — 54% of India is under the age of 20. That’s nearly 540 million, the largest such community in the world, according to the National Council for Applied Economic Research, India. And they all want to connect to each other.
Big Players Enter the Ring
Some of the new Indian networking sites that have cropped up in the last…