VEEVA : A cloud opportunity Gained

With in a span of six years if you reach $5 billion valuation !!!! Its Huge....

Veeva Systems was founded in 2007.  It provides enterprise level cloud based solutions to life-science

companies.  Till Tuesday October 15' 2013 Veeva Systems had raised $7 million out of which $4 million came from Emergence Capital Partners.  Came Wednesday and they flaunted the markets and analysts by raising $261 million. 

Veeva was first supposed to come up at a price of $12 to $14. They increased it to $16 to $18 one week prior to IPO, but finally came up at $20. And the story of uprising doesn't ends here. The stock price raised to almost double on first day of trading. It reached an intra-day high of $39.64. 

Now the question of the day is why so much fuss? The answer is - Its not fuss but Cloud services is the future of tomorrow.  Whenever you check your mail via Gmail or upload a video on youtube or share your latest snap on facebook....you are using cloud. But the future is more bigger than this. From production systems and workloads, creating testing scenarios for complex systems cloud is every where to full fill business needs. 

As per a latest report @Gartner, cloud services market is expected to reach $131 billion by end of 2013. Most of this market approximately 59% is concentrated in North America and cloud advertising is the largest sub-segment of Cloud services. 

Veeva is just an opportunity gained. They provide cloud based enterprise solutions to life science industry. As life science companies mostly has a very long gestation period. So they need a large ...very large amount of data and solutions for sustaining. 

Mr. Barrie's Response to Recruit.co : Debut on Sydney Street

Freelancer Limited, supposedly world’s largest platform provider (freelancer.com) for connecting employers 

and freelancers, is going to list on Australian Securities Exchange, one of world’s top 10 Exchanges by market capitalization. Company is expecting to get listed by November 15^th 2013.

Freelancer limited plans to raise $17.6 million through this issue. 6.9% of company will be put on sale for IPO. It is expected to value the company at $218 million. Matt Barrie, CEO; Simon Clausen, Non Executive Director and Chief Technology Officer Darren Williams will together hold 87.4% of company after the IPO float.

But apart from figures this represents a bold decision by Mr. Barrie. Just months back he has rejected an offer of $400 million by Japanese giant Recruit Co. Ltd. The offer was way higher as per as current IPO valuations are concerned. But as said, entrepreneurs’ valuations do not work on current multiples.

It is well known fact that Recruit Co. Ltd is trying to be on exchange from past one year, but is not able to materialize the plans. While this seems to be an answer to Recruit’s offer.  It also puts applause to Mr. Barrie’s daring rejecting the much higher offer and going for his ideas for making Australia’s biggest online service company.

Definitely Recruit Co. Ltd. succeeded in acquiring a lot of companies in the past but you can-not put every foot in same shoe!!!!!

Flipkart's Latest Funding $160 M

FlipKart supposed to be India's version of Amazon has successfully raised additional round of funding of $160 million. This is flipkart's fifth round of funding. This comes just few months after $200 million raise.

Although Mr. Bansal has denied the plans for D-Street debut, but market suppose FlipKart to move that way soon, possibly in next year.

FlipKart, based in bangalore, was founded in 2007 by Sachin Bansal and Binny Bansal, alumni of IIT Delhi and veterans from Amazon.com. Till date FlipKart has raised a total of $541 million in five rounds of financing, which was initiated by a $1 million investment in 2009. The latest round was started by a $200 million investment by Naspers, South African internet giant, Accel Partners, Tiger Global and Iconiq Capital.

This second trance of $160 million is led by external investors Dragoneer Investment Group, Morgan Stanley Investment Management, Sofina and Vulcan capital along with participation from Tigal global, internal investor.

FlipKart has currently approximately 500 sellers on-board. Company plans to reach 10,000 figure by end of FY 15; as per Mr. Bansal. As per Mr. Bansal they are also looking to acquire some value generating companies. 

At a time when e-commerce giant Amazon has entered Indian market, investors were skeptical about future of Indian e-commerce companies. To compete with such a big giant you need to feed in a local spoon.  As of last year FlipKart was reportedly losing Rs. 50 crore per month. 

But the latest funding, which is largest funding by any Indian e-commerce firm, has kept its critics' mouth shut. It again opens the door of Indian e-commerce market with investors waiting outside. Although restrictions and local problems are also intact, which are enough to fail big plans of many e-commerce firms in country. 

Advit Research's upcoming report on E-Commerce in India will further look into these all aspects and will touch other intricacies that may scrap Flipkart's hidden plans.

Advit research is an India based startup, founded in 2013. Company specialize in Marketing and Financial Research. 

Company provide research derived through plethora of information from a wide range of sources, processed through advanced information management tools, sophisticated analytical systems and industry standard methodologies.

Indian insurance industry to grow a CAGR of 11.0%, taking the direct premium to USD 125.0 billion in FY’2017: Advit research

From the golden phase of 2000-2010, Insurance industry of India has gone into plethora of government regulations and increasing costs, apart from rising burden of accumulated operational losses. But gloomy days will be over soon. As late as May 2014, i.e. after general elections, a lot of financial reforms are expected including FDI. Foreign investment will not only bring money but also an expertise and risk mitigation strategies that can be implemented in Indian market. Insurance market is expected to have a high growth rate trajectory in next 4 years.

The insurance market in India has grown at speedy rate post liberalization and since then the market has evolved with every passing year. Currently the government owned Life Insurance Corporation (LIC) of India is the largest insurer of the nation covering around 60% of the market in FY’2012.  The last few years have proved crucial for the Indian insurance industry. Through FY’2006 to FY’2012, the insurance sector in India grew from USD28.5 billion to USD 70.6 billion recording a Compound annual growth rate (CAGR) of 16.3% in the corresponding years. The growing population of the country coupled with rising awareness of insurance accounted for this growth.

Insurance Industry in India has huge growth potential and opportunities. With the privatization of the sector and entry of foreign direct investment, the Insurance market in India is expected to grow in the near future. External factors like advancement of technology, more innovative products and an empowering consumer base have made the market more lucrative.

Though the insurance industry struggle to come out of the shadows cast by challenges and uncertainties caused by the global recession ,sluggish economy and volatility in capital markets in last few years, it is anticipated to maintain a positive momentum in the future. Through FY’2013 to FY’2017, the Indian insurance industry is forecasted to grow a CAGR of 11.0%, taking the direct premium to USD 125.0 billion in FY’2017.

The report published today by Advit Research provides you sneak overview of intricacies of Indian Insurance market. From as past as 2006 it projects the various scenarios of Indian Insurance sector for 2017. As per the methodology of Advit Research, company has used SPSS to project future and the variables, correlation and their respective sensitivities are analysed deeply to get all scenarios covered.
For further information please visit INDIAN Insurance Industry Outlook FY’2017