We are not closing

Bangalore-based Indiainfo.com, which had created waves during

the past few months for its lavish media blitzkrieg, was reported to be on the

verge of shutting down, with one daily even carrying a full-page report on how

the company would not see through the year.

But Madhu Kodali, the newly appointed CEO of Indiainfo,

refuted the claims. "The story has been planted by those who have left the

organization. There is no truth in them," he said. What prompted the rumors

was the exodus of some key people



from the dot-com. Its president in charge of portals, Sunil Rajshekhar, who had
led a dramatic exodus from Times Interactive to Indiainfo a few months back,

quit the company. This time again, he is supposed to have pulled along with him

the team that he had brought from Times Interactive. While Rajshekhar’s plans

are not yet known, Kodali denied that all those who had come with Rajshekhar are

leaving. "The truth is that one VP and three other junior level officers

are quitting. Yes, some others did face uncertainty after the resignation (of

Rajshekhar). However, we have clarified that they were all rumors," he

said.

Kodali is optimistic about Indiainfo’s outlook. "I am

positive about the company’s future and its market reality," he said.

And, what was the reason of Rajshekhar leaving Indiainfo? "Some of the

areas in the content are being downsized. This is being seen across the world in

the dot-com industry. We recognized some non-performing areas, those that are

not generating enough revenue and traffic, and decided to let go of them,"

Kodali said, reiterating that there was no shift in the basic strategy of the

company.

No second finance?

He also refuted reports that the company has not been able to

raise finance in the second round. It is not an issue at all. "While we are

in the process of discussion for a second round of funding, we are not dependent

on it. In fact, the recent cost-cutting exercise was to make sure that we do not

depend on the next round of funding," he said.

However, Kodali admitted that the initial response to the

second round of funding was not as positive as it was earlier. "After the

Nasdaq crash, the market has been very careful. However, we expect that with our

business model, there will be a positive response," he said. According him,

the company expected to raise about $10 million in the second round, a

significant chunk of which would be used for setting up B2B marketplaces.

Cutting costs

How would Indiainfo go about the cost-cutting exercise?

"Cutting down on ad spend. We had to spend huge money to create a household

brand in Indiainfo. Now, the ad spend will be only 20% of what we have been

spending," Kodali said. The market however has taken the news of the exodus

with caution. "It should be kept in mind that Indiainfo is purely a

dot-com. It does not have the advantages of a traditional brick and

mortar," pointed out one source.

Srinivas R and Manoj

Chandran



in Bangalore