- One, mobile application development on mobile was just about maturing
- Two, the gaming industry in India was primarily flooded with flash games – mobiles gaming wasn’t really a great industry to get into.
Category: iPhone – iPad
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Entrepreneur’s Interview – Dumadu Games
Sachi: Welcome Narasimha Reddy, founder – Dumadu Games to the interview. Dumadu is nearly a year old company operating in the space of gaming across various platforms.Narasimha, It would be great to begin the interview with a brief background about yourself and then let us know how the company and how has grown this far.Narasimha: Thank you, I am Narasimha, I completed my engineering in 2003, and began my career in Tata Elexi. Then I joined EFI, worked two years before starting my own company. I worked along with a partner setting up the company for three year and then began this company called Dumadu. Dumadu is into computer gaming.Sachi: Dumadu is an year old company right! How did you envision the idea of Dumadu as gaming company? Why did you start it off? How did the idea strike you?Narasimha: While with working on iPhone, we realized that it is the best platform for the gaming, so we felt that mobile gaming is going to boom, that how we started a gaming company separately – That how Dumadu started.Sachi: When you started off Dumadu you are looking at two fold challenge I understand.Could you highlight the challenges you faced in when you began?Narasimha : The biggest challenge was the lack of experienced resources. When I looked for game developers with more than three to four years of experience, I couldn’t find many people. There were very few developers mostly on desktop gaming and not on mobiles. So that is the big challenge.We solved this problem by, recruiting freshers, training them and placing them as developers in our company.The current challenge that we face is – finding people who can conceptualize the game. In this case too, we are selecting freshers, training them and getting them to prepare specifications and develop games.These are the biggest challenges we had.Sachi: Since you began recruiting freshers and training them, the training costs would be pretty high. Is this just the case since you are one of the early entrants into the field in India or is it the way the industry is?Narasimha: Yes, there is a cost in training these people; the turnaround time would be long. We cannot expect them to be productive in the first six to seven months. This involves both time and money!Sachi: Creating a team for designing the complete game is difficult – it involves elaborate process of game design, create the story board, the characters, etc and then go ahead and implement the game. Finding good game developers and Designers as you said is a challenge, so how did you go ahead forming the team?Narasimha: When we started off, we didn’t begin with big games – we began with casual games. These did not require many specifications etc, as we have gained experience, we are slowly adding in more experienced people and also building bigger games.Sachi: You looked at this opportunity in the mobile gaming space, and entered into it. What were the kinds of games that actually on iPhone app-store or Android app store, how has it changed over the last one year?Narasimha: The trend changes every six months, in this space changes everything. When we started the trend was towards paid applications, now there are ads in applications, then the trend was towards web service and in-app purchases. The trend we are adopting is more or less the same. Most of the games we are developing have web service, and we are not expecting any revenues from paid applications. Most of our revenues are coming from In-app Purchases and Ads.Sachi: Could you elaborate on the way the games have changed, rather than generic applications?Narasimha: Casual games have always remained. In the last six to seven month we have seen lots of companies coming up with social game. Now the trend is more of social games and games with virtual money.Sachi: how has the team size grown over the last 6 months of operations?Narasimha: When we started the team size was 20, now have reached 80.Sachi: A scaling up 4 times in an year, impressive! What were the challenges in terms of people that you faced?Narasimha: The biggest challenge is attrition. The market is very good for game developers and India does not have many game developers too, so it is hard to retain people. That’s a big challenge!Sachi: Given your growth in number of people and of the kind of products your visibility would have increased. Did you look for any funding to actually scale up?Narasimha: We have been approached by many VCs but we are not willing to take funding now. Probably in another 6 to 7 months when we are organized well. I do not consider my company too well organized. If we are organized in the current way, it would be extremely hard to scale, so when we have organized ourselves better, I would look for funding – I am expecting this to take around 6 months.Sachi: When you have scaled from 20-80 people with the span of nearly one year, you would definitely have some challenges in the kind people you are looking for. What is it that you essentially look for in somebody while being recruited?Narasimha: When we recruited a fresher, we look for the aptitude of the candidate, and obviously the attitude. These we feel are extremely important to be looked into.Sachi: When you said attitude, what is it that you are looking for?Narasimha: When you say attitude, one must have an interest to learn, should be willing to stick to a company for long time and hard work.Sachi: Could you share with us, the vision you have about the company for its future?Narasimha: In the beginning, we struggled for some time for revenues to generate. Even at this stage we looked at doing only products, we didn’t intent to get into services at all. I see the market has been pretty good.The second aspect is the development cost – in India the cost is almost 1/4th or 1/5th of what it is in the US. The place where both of us – the Indian companies and the US companies promote is the same. So it translates to saying that our cost is lesser but the market is the same – So we are able to realize the huge potential in terms of revenue for our products and we would stick to it.Sachi: Did you consider a model where in you create a brand name, and market your products. At a later date you could focus on just doing the marketing and branding while outsourcing the development to someone else or even entertaining freelancers approach you?Narasimha: No, we are not looking for that model.At the moment, the place where we lack is in making good specifications – Specify the game. We are looking for the model where we tie up with a company that do the specifications and we develop the game and market it. We share the revenues with the company. That is the model we are looking at.Sachi: It is interesting model where you complement your weakness with someone elses strength and look at a win win situation.Given that gaming is such a dynamic field, where do you want to see Dumadu in the next couple of years?Narasimha: If we look at the number of games published on the app-store, we have published more games than any other company in India. Going forward into the next 2 years, we are looking at creating larger number of social games. We want to change our portfolio to social games from casual games.Sachi: Do you have larger vision as to what you want to do with Dumadu Games?Narasimha: No, I don’t have any such large vision for Dumadu Games.Sachi: What is your message to the aspiring Entrepreneurs?Narasimha: Right now the market is too good -especially, when mobile applications are concerned. If one wants to be an entrepreneur, they have lots of opportunity.Sachi: Is there any set of dos and donts that you would like to give the entrepreneurs?Narasimha: The market is too good and I would welcome more entrepreneurs to this world.When you are confident about your capabilities, it’s always better to try.When I ask someone why they don’t start a company if they are confident about their idea, they say – they aren’t confident about its success. They constantly think about the financial status.If I am confident about my capacities, I should be ready to leave the job and try the venture out – Its always easy to get a job, it is not really that hard. If you have tried for an year and haven’t succeeded, what you lose is one year’s salary. You can get back any time.Sachi: When you began your journey as entrepreneur, how difficult or easy was it to convince the people back home?Narasimha: I never said anything about my job or company back home, they were thinking that I was still working for nearly two years after having started off. I conveyed I had resigned only after two years after starting off.Sachi: Do you think it is a good idea for other people to follow?Narasimha: I wasn’t confident that my parent would allow me to do so, so I adopted this approach not sure if it would work for others.Sachi: Now that they know you have started off, how is the support at home?Narasimha: It been pretty well now.Sachi: Any challenges you personally front with the long working hours? How about the work and life balance that people talk about?Narasimha: I wouldn’t say that we require working too hard. It is ok if you work as much as you work for an employer company, it’s perfectly fine. You don’t need to work too hard.Sachi: Thank you, for coming on to the interview. -
Entrepreneur Interview – Permeative Technologies – iPhone & Android Development Company
Sachi: Thank you Basavaraj of Permeative. Thanks for accepting our invite to be on the interview of entrepreneur series that we have.It would be great if you could begin with introducing yourself and then briefly talk about the company that you are running.Basavaraj: I studied engineering at BIET Davanagere and then joined Tata Elexsi as a fresher and then moved to Sling Media in the domain which I always looking for. In SlingMedia I got opportunity to work on iPhone SlingPlayer (Video player) and saw power lying underneath the iPhone (in 2007) – and just thought of opening a company around it. In March 2008 We opened the company – iAppsSoftwares (another name), and in Nov 2008 registered it as Permeative and it has been more than 3 years right now since when we began operating.Sachi: Could you tell us what about Permeative?Basavaraj: Permeative started as an iPhone application development company and now we call it as Mobile application development company as diversified our portfolio to Android and Windows Phone 7. In 2008, the only powerful platform was iPhone, so we started with that. Right now we have small team on Android and Windows 7 and we are looking to start on Samsung BADA as well.Sachi: Could you tell us how the journey has been in the last 3 years – March 08 to now, which is now almost four years?Basavaraj: Our story has been with many ups and downs. We started off well without raising money from anybody and we grew organically. We ploughed back what we had earned, purchased some machines, infrastructure, hired some people. Within 6 – 8 months we grew pretty well that we moved into a new office with a rich infrastructure. Our growth was so good that Investors themselves began approaching us – big investors. We had even moved to an advance stage with one big investor but due to some of conditions, we didn’t sign up and complete the funding. Following this we had slump primarily due to the period of transformation we were expecting.
Then in 2010, we began the journey again. We actually wanted to grow in multiple domains, but we looked into too many domains and this affected us. The focus was lost during this phase. In 2011, we founders split. I was able to focus on this one thing and we are going well now. Our revenue has grown seven folds and we have closed most of our debts. We are getting profits and it is much better now.Sachi: When you started off what was it that you envision that you would be doing with Permeative. Is there any vision that you started your journey with?Basavaraj: When I started of Permeative, there is no vision in terms of product, but I had a good vision in terms of services. It was the first thought that came to me. Now, my strategy has changed from looking at services to products and I have a lot of ideas to purse built by my years of experience here.Sachi: These are more transactional in nature – when you say that you are moving from services to product. What initiated the change from services to product?Basavaraj: The First is the revenue, second is growth and third is the risk factors.In 2008, we were starting off and didn’t have any source of revenue. We needed money, and we were fine with small revenue. In services the revenue generally grows linearly over the period as you add in more people. But in products its more an exponential growth – and that is what is expected from the products.If we look at the growth angle between services and products; the services company would grow in terms of the number of people but, in terms of revenue it wouldn’t be very attractive – the exponential growth wouldn’t be seen.
Coming to the Risk factors; in 2008, we weren’t in a stage to take risks. Product development and launch is more risky than a services launch. We didn’t know much about creating the right product, analyzing, and marketing strategies. Today we understand the complete game about the product development – how to bring it into the market, what the user expects; so we are expecting an exponential growth by focusing on products.
Sachi: In 2008, you would be an early entrant into I-phone app, or mobile app development space on I-phone. How did you spot this opportunity?Basavaraj: It was the passion of opening a company, which is what I would attribute it to. Since college days, I was always intending to start my own shop.
I wanted to start my own company – I had no clue how I had to go about doing this. My family also doesn’t have a background in business; I had no idea how to neither do business nor start one, how to make it successful, or even where to start.When I moved to Bangalore and began working, I didn’t find an opportunity where I could start something,In 2007, when iPhone was launched and I was working at Sling Media – I got the chance to work on iPhone. We cracked it, and using hacking methods we developed SlingPlayer application. I saw the power underneath, I thought that in future, the whole system would move on to such devices. This thought struck me in 2007, the power of the iPhone at that point was equivalent to the power of my home PC processor. I was amazed and also grew confident that this would be the future, and this is where I could start something. I could sense that huge number of projects would start on this platform and most of the things would move from desktops to mobiles.With this thought, I began speaking with a lot of friends who would be willing to start and finally started the company.
Sachi: Once you began your journey, in terms of the services itself, how was the first reaction from the market who were the first customers? How did you acquire them?Basavaraj: We began with freelancing which was the primary source of the services projects for us at that time. There were many freelancing projects to begin with – there were very few developers around the world who used to take up some of the most challenging and complex tasks on the iPhone app development. This created good credibility in the freelancing market and slowly we moved to direct company related services and develop some enterprise applications, music etc. We expanded our portfolio across many categories.In this year 2011 we don’t have any freelancing projects. We deal directly with the projects which companies offer, and many of these are on enterprise applications.Sachi: When you say enterprise application you are contacting the company directly and working on the project that they have. How do you work in such domains, Is it the outsourcing model or….?Basavaraj: We work on two models the first one is one in which we send some of our people to their office and they could take care of all the management, architecting etc. The other model is they outsource the complete project. We completely consider the end product as the deliverable and deliver it to the product.Sachi: So, that was the services wing of what you are doing now right? In the Products wing, what kind of the products or domains are they generally in? How were your products classified?Basavaraj: Our product are mainly into productivity, education ,music and games. These are four main categories which we have been successful, we have product in categories like navigation, health care and other things, but they are not as successful.Sachi: If somebody is to start a company today, what would you say is essential? In the domain of mobile market itself? What would you say is an important factor they should remember?Basavaraj: For anybody want to start accompany, any domain is the good. Any domain you can begin the journey, as if now the market is very attractive – in the whole Indian history ,this is the first time there is a very positive mood in terms of starting company by entrepreneurs. First thing, look for good partners with good understanding and complementing partners. That is the first most important thing. People are more important than what domain or what technology you would be getting into or what product you are going to build. People are the most important.Sachi: You got to the subject of people; so, let me ask you, how you select your people now? Or the journey in selection of peoples itself, from the point you started to now?Basavaraj: Instead of the journey I feel its better to talk about how I intend to do it in the future.While starting off, I didn’t find a good person who could give me a company; it was not too sought after at that time. The environment for entrepreneurship is changing in India, and now it’s easy to find people. Straight from the college too, there are a lot of people who are interested in going ahead and starting off companies. This is good news!While choosing particular person as a partner, you should look at complementing characteristics in the person. Suppose you are a technical person doesn’t look at another person also to be a technical person. I mean, when you have option to choose or when we have an option to find a guy find somebody and complementing you people as a partner – if you already have a team of two-three guys all technical and have already started then don’t worry about it. Like suppose you are a technical guy find somebody who is good in marketing, who understand that or if you go into services, go for operational guy, who can take care of operations.
Complimenting characteristics is better than similar characteristics. If we have similar characteristics then ego problem will start at early stages of company – this leads to breaking up. Better you go with one of complimenting characteristics.
Sachi: While you are discussing about people to form your team with, I did mention about marketing. The domain you are operating is almost a flooded market. So how important is marketing in the mobile space as such? Not just I-phone space and mobile space – there are tons of applications who do you make yourself visible there?Basavaraj: We look at the market as 2 types – services and products, the strategy we adopt is pretty similar.
Say for example, in mobile technology take a specific usage domain and master it. Work so well that, when people look at the work you have done, they realize you are a master of that technology and you would be their automatic choice. You need to stand out of the crowd through the work you do.
Go to great depth in the domain of your choice – Ex If you don’t know games, leave it, if you don’t know music, leave it. If you understand productivity apps well, just go to the depths and get perfect in that.
Then people definitely, who are in productivity, who wants some applications in productivity, they will come to you. As you begin refining your domain, the expertise will improve and you could definitely showcase better apps to the world. Go to the depths in a domain in some category and rather than spreading yourself everywhere.Sachi: Ok, coming back to the other factors that we probably began with – some of the mistakes you have done. From your experience, what are the three most glaring mistakes you that you have done in the journey?Basavaraj: First thing is a choosing a partners. Don’t compromise while choosing partners, if you don’t get a good partner you don’t look at something compromising and start with, we should really get one who is really interested in it. This is first one and very important.The second thing is when you want to scale it up, after some time definitely you would look to scale it up. If you are not able to do it yourself, definitely go for funding. Funding should be encouraged and then only company can really begin to grow – you could then scale up in terms of services and in terms of products and services for both – funding is very important. We rejected this.Sachi: If you are going to highlight what are the three biggest achievement of with the journey of entrepreneurship what would say?Basavaraj: The first biggest achievement is starting a company when nobody was there in the space absolutely the first starting a company in India in iPhone at a time when everybody was thinking that mobile applications was a business with 5% margin and the 95% carriers would take. Apple changed the complete game. Before apple announced all these things, we identified and started this is the first and great achievement. Of course we didn’t leverage this start which we got by preempting the trend.Second is big investors identified us amongst thousands of companies across the globe and came forward to invest.And the third one is in spite of having lots of ups and lows and after splitting the company, we came back very well. Now our revenues have increased much higher. Our current revenue is much higher than last year when number of people was more than double of what we have today.
Sachi: What is the vision from Permeative for the next one year?Basavaraj: I still look at Permeative as a service based company itself. For services firm the challenge is mainly in scaling rather than technology. I want to scale into different domains like windows phone 7, and most scaling in iPhone and of course getting the bigger clients with some in the Fortune 500 companies list – atleast 5-6 companies if I am able to. That would be a big achievement for us.Sachi: What is your message for aspiring entrepreneurs?Basavaraj: Don’t look at the business opportunity cost – will you earn money or not? What happens in the future? If you can’t do it will you get a job?. If you open the company and you failed in sustaining the company, even then you have better experience than your counterpart who only worked in companies. You will be 10 years ahead of other guys working in the company. Don’t need worry, go ahead, do something, achieve something. Put in your whole hearted effort – day and night, and achieve something. And choose some good partner and try to make it larger with every attempt. That’s it.Sachi: Thank you Basavaraj, for taking time out to this interview, thank you once again.