Finally, it happened in Indya, and Star's convergence dreams get closer to fruition; plus, Baltimore, IBM zoom in on India Net.

Team BT

For somebody whose business strategy has always seemed a trifle opportunistic (and wholly perplexing), Microland CMD Pradeep Kar has displayed the uncanny ability to pull investors-call them angels; call them white knights; call them greater fools from the hat.

Pradeep Kar, CMD, Microland: Open seasame!

More than a decade back, in 1989, Kar managed to convince a conservative SBI Capital Markets to seed-fund his ambitious networking solutions start-up. A year later, SBI Caps sold its stake in Microland to the Technology Development & Investment Corp of India (TDICI), at a 100-per cent premium. Kar had reason to cheer: The same TDICI had refused to fund his start-up as it thought his idea ''service-oriented, not technology-oriented''. Incidentally, that was also among the first major VC deals in India, akin to the 1977-Apple Corp-Arthur Rock deal, which made the fortunes of all parties concerned.

Twelve years later, Kar had reason to cheer (again): Rupert Murdoch's Star Networks announced the buy out of his Indya.com ''in-trouble-like-any other'' horizontal portal.

In fact, four months back when BT caught up with Kar, the man had frankly confessed that ''Indya was an opportunistic play that just happened.'' Though Kar's gains from the deal can't be assessed as of now-both the parties are keeping the details of the transaction close to the chest; Star had invested $50 million for a 37-per cent stake in Indya in April 2000-the fact that a media group found an ''opportunistic play'' attractive enough, is a success story by itself in these meltdown times.

Does that mean Kar is exiting the dotcom turf altogether and re-entering the safer domain of networking services? Well, over the last one year he did announce a series of new ventures, NetBrahma, MicroUniv, and Innerframe-all revolving around the networking services segment. Besides, Kar's other dotcom, ITspace, launched as an infotech community portal, has retrenched most of its content-staff over the past few months. The site will now morph into an event management portal, which analysts believe, will work as an online extension of Media2India, Microland's event management company.

Well, the deal has put Kar at his ambiguous best. Dig this: ''Microland is a diversified technology services company focussed on software services and technology infrastructure services. The present deal is in the best interests of Microland, Indya, and Star.''

The New Indyan Star

Star is losing no time in bundling India into its larger gameplan. As per a company spokesperson, it will extend all its TV content to Indya-the site already handles some Star promotions like that for Kaun Banega Crorepati-with the objective of capitalising on the emerging webcasting pie. Indya will also be promoted on the Star channels. The network's ad sales and content heads, Raj Nayak and Sameer Nair, are being inducted onto the board of Indya. There are also hints are that Sunil Lulla will continue as CEO of Indya, with Star Group Executive Vice-President Gary Walrath as the Chairman of the board.

Besides Indya, Star has sizeable stakes in Explocity, Indiaproperties, Baazee, and eGurucool.

• Baltimore Technologies, the global leader in e-security solutions, is keeping a keen eye on the emerging Indian digital signature market. Reports indicate the company will be offering end-to-end solutions and services for setting up public key infrastructure through its business associates in India. Baltimore Tech has three business partners in India: MIEL e-Security, Cybermate Infotek, and Ways India.

• It's time to kiss the sky. Hughes Network Systems (HNS) is planning to roll out broadband Internet access services through satellite, and surprise, surprise, the retail market is also on its radar. Hughes says since the cost and the size of terrestrial dishes have both decreased overtime, retail investors can also be part of a play, originally aimed at the enterprise segment. Hughes will offer broadband Internet access at speeds in excess of 2 Mbps through small satellite dishes, almost the size of a computer screen. HNS will roll out the services through its VSAT subsidiary Hughes Escorts Communication. The company has already invested in a satellite hub in Gurgaon near Delhi for the purpose.

• From bottomline blues to Big Blue, that's the story of Chrysalis Investment Advisors. IBM Corp has recruited this Mumbai-based VC as a partner for its Blue Velocity programme, an initiative seeking to fund early stage start ups. Although the investment is not known yet, sources put it in the range of $8-10 million. IBM will also be the preferred technology vendor for companies in Chrysalis' portfolio, and have a representative on Chrysalis' advisory board. IBM currently has nine other partners in the VC segment operating in the Asia-Pac region.

Rediff's Code Red
Its murky Q1 results may mark the end of pure-play aspirations.

Ajit Balakrishnan, CEO, Rediff.com: Wrinkles on the screen

First the facts: this company's American Depository Share (ADS) issued at $12 around a year ago, now trades at a little over $1. Significantly, the company reduces its loss per ADS rate to 9.6 cents from 10.3 cents the previous quarter. We haven't lost it (at least not yet!). This is the only point that the company in question could highlight in its Q1, 2001 results. And oh! yes, the stock itself is under threat of being delisted.

Well, that's the story of Rediff ver 2.1 as the fiscal begins. CEO Ajit Balakrishan says: ''There is a cut in the signup amount of traders, though the number and value of transactions have gone up. So margins have gone down''

But then, if its results are any inidcation, Rediff has ''successfully'' integrated its online and offline businesses. A whopping 87 percent of its latest revenues-$5.75 million in total, up from $1.5 million in Q1 2000-came from the newly acquired offline businesses, India Abroad and Value Communications. While Rediff's cash balance stands at a not-too-bad $32 million, Balakrishnan expects the full fiscal year revenue to be lower than estimates, at $27 million.

Well, the 'Red' factor, it seems, is overriding the 'if' factor. A turnaround is still possible if the newly-acquired offline ventures perform. No wonder, Balakrishnan hints at more offline acquisitions in the near future. So much for pure play.

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