Indian software companies like Flipkart, Makemytrip, InMobi inching close to $1 bn valuations

BANGALORE: Several Indian software product companies now command or are close to commanding valuations of $1 billion, a sign that the software products space is coming of age in a country whose strength in technology has so long been in services.

Online travel company Makemytrip, which listed on the Nasdaq last year, had a valuation $1.13 billion at close of trade on Monday. Mobile ad network InMobi, which closed a $200 million funding in September, is close to touching a billion dollar valuation.

Bankers say that online retailer Flipkart, which is reportedly in talks with General Atlantic and Carlyle to raise about $150- $200 million in funding, is valued at close to $1 billion.

Sharad Sharma, co-chair of the Nasscom Product Forum, said there are other product companies that could touch the $1 billion mark in the next couple of years. Nasscom is holding a product conclave in Bangalore on November 9-10. "Every year I expect at least one product company to hit the $1 billion valuation mark. Those like Zoho and Druva Software are in line to become billion dollar companies," he said.

He said that some of the successful product start-ups are now setting templates for others to follow, just like what TCS did for IT services companies in the 1990s. The lower cost of establishing businesses, thanks to cheap online marketing platforms and technologies is helping product companies to grow.