Jobsite Exits: Kliener – Naukri(Infoedge); Web18 – Jobstreet
Its exit time in the digital space as two exits by investors in two jobsites in India were announced. Lets have a look at them and how they differ from each other.
Kliener Exits Naukri – Makes a profit of 61 crore
Naukri.com the poster child of the dotcom space in India can pat itself on the back for providing 4x returns (almost) to its late investors. Kleiner Perkins Caufield & Byers (KPCB) and Ram Shriram’s Sherpalo Venture who had picked up 2.04 per cent stake each in Naukri.com (Info Edge) ahead of its initial public offering for about Rs 25 crore have sold their entire 4.08 per cent stake for about Rs 86 crore. That means they netted a profit of 61 crore on their investment made in 2006 i.e. an almost 4x return in just over 3 years.
This to any VC is a sure shot success deal in India. And its seems the poster boy of the online recruitment space in India had delivered for its investors as well. Though same can’t be said about the other players in the same space.
Web 18 sells 50% stake in Jobstreet India back to Jobstreet Singapore
So while Naukri made a ton of money for its Investors and founders alike Jobstreet India which is the Indian arm of Jobstreet Singapore and had equity stake of 50% by Web18 of Network18 group couldn’t do so. Jobstreet India has been bought back by Jobstreet Singapore from Web18. So the 50% equity that was held by Web18 is sold for a paltry sum of US$126,501 back to Jobstreet Singapore which is its parent company. That pegs the valuation of Jobstreet IIndia at about 250K $ which is roughly 1 crore!A far cry from the valuation that Naukri.com possesses in the markets today.
This isn’t the first time a jobsite has failed to deliver value for its founder. Yellojobs too was shut down in India. In India the jobsite space seems saturated with Naukri, Monster India and Timesjobs leading the pack. Maybe niche jobsites have an opportunity still though even that depends heavily on the execution route taken.
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Job sites in India are failing just because –
1. Till date all the existing job portals are offering features and following marketing strategies which are designed a decade back.
2. Other Job Portals which has come after naukri, timesjobs, etc are just replicating the same business nd doing nothing different.
3. Till date all the job portals end up their services just showing Jobs to the Job seekers, they should think out of box.
If any job portal follows these points and configure their business process, then definitely they can see success.