Goa is slowly but steadily developing into a base for the IT industry with over 230 odd startups functioning in the state. This has been happening well below the radar. Ajit John spoke to Saurabh Nanda of Vacation Labs an IT company which helps online travel companies with their online marketing and distribution strategy.
Herald: You are a B-Tech from IIT Kanpur and you had a pretty interesting corporate tenure, what made you come to Goa?
Saurabh Nanda: I spend a year in Gujarat then another year with Synapse in Goa before moving on to Cleartrip when it was a startup in Mumbai. I worked on various assignments during my tenure in that company. It was fun but in my fifth year a time came when I was no longer enjoying it and I then realised it was time to move on. I also realised that if I had to start something new it would have to be outside Mumbai. It is expensive to stay in Mumbai without a job. I had visited Goa and even worked so I took a gamble and came over in 2012. I wanted to start something on my own though I have to admit there was no burning desire to be an entrepreneur earlier. I had interactions in Mumbai but they somehow did not feel right and I just moved here without any offer and yes my wife was pregnant.
herald: What does Vacation Labs do?
SN: We have a travel e-commerce software. We have over a thousand clients around India and the world. We have software packages which cane me configured depending on your requirements. What it means is that our software is given to you and it can be customised around your needs. Our software shows customers live rates online, availability of rooms. We don’t generate the content rather we are the brains behind the software that helps you read it.
HERALD: How do you generate your income?
SN: Our customers pay us an annual fee for using our software. The cost can vary anywhere between Rs 20,000 to 70-80,000 for using it. The variable cost is based on the nature of the requirement of the client. All our clients have come on board thanks to our online marketing campaign. Everyday we get two new clients so yes there is a lot to be done.
HERALD: Have you received any funding?
SN: Oh yes we recently received a million dollars in funding.
HERALD: How does it feel to operate in Goa?
SN: Goa is the centre of the country’s tourism industry and so to be here is good. However I have to say the businesses over here takes a longer time to come on board. During the season they are very busy and don’t give you the time of day. Offseason many just fly out giving you a very small window of opportunity. In other parts of the country however it is very different. In Delhi even if they are really busy they will give you the time since this software could help increase their business. Business was a bit down last season due to the downturn experienced by the tourism industry in the state.
HERALD: How big is the market for a product like yours?
SN: There are several small time operators all over the world who want to grow and move up the value chain. In the next five years I want to bring in the long tail of travel online. The business world wide is valued at 50 billion dollars and in India it is 10 billion dollars and is expected to grow further. In India there are approximately 50-60,000 to a lakh of such operators who are presently not visible o the radar. I would like to be the defacto technology for the segment.
