Traction can lead to IPO
Can you believe sites like 123Greetings can go public, its just simple flash based e-cards service provider with an inventory of 20k cards. I have used their service during my college days and you would have send cards to your friends via 123Greetings. I was in a impression that 123Greetings is US based portal and was excited and surprised to find its a product of Kolkotta based Intrasoft technologies. Its been in operation since 13 years
Let’s dig into the reasons which propelled 123Greetings IPO- Its revenue depends only on online advertising. Currently, 65% revenue and 60% online traffic come from the US while the rest is from India, Its US #2 greeting site as well. Have a look at their monthly traction -
|
Worldwide |
|
| Unique visitors (estimated cookies) |
7.4 M |
| Unique visitors (users) |
4.6 M |
| Reach |
0.3% |
| Page views |
74 M |
| Total visits |
11 M |
| Avg visits per visitor |
2.4 |
| Avg time on site |
9:50 |
This is some mind blowing statistics!!
According to its prospectus filed with the market regulator Securities and Exchange Board of India, Intrasoft posted revenue of Rs21.38 crore and profit of Rs5.3 crore in the last fiscal. At the lower end of its price band of Rs137-145 per share, Intrasoft hopes to raise roughly Rs50 crore from the issue.
The firm’s market capitalization will thus hover around Rs200 crore—eight times its revenue for the past year, and nearly five times more than the net worth of the firm, which stood at Rs37.6 crore on 30 September 2009.
So moral of the story – company can go public if you are making money solely coming from advertisers 
-Hitesh, vcBytes.com
