Economy
India ranks highest in global consumer confidence survey
 India, with a score of 130, ranked the highest in consumer confidence among 60 markets. The online survey released on Wednesday was measured by American agency Nielsen.
 
India's score of 130 was one point higher than the fourth-quarter of 2014, followed by Indonesia (123), the Philippines (115) and the United Arab Emirates (115), Nielsen said of its survey conducted over February and March this year.
 
According to the survey, the year started positively for global consumer confidence, with an index score of 97.
 
After a dip at the end of last year, when all regional confidence scores declined, it increased slightly or remained stable in every region except Latin America.
 
In the Asia-Pacific region, consumer confidence increased one point, posting the highest quarterly index score of 107 while North America remained steady at 106.
 
Confidence in the Middle East and Africa region (96) and Europe (77) rose one point each in the first quarter, but decreased two points in Latin America which scored 86.
 
"While confidence across global regions remained relatively stable in the first quarter, there is considerable variation across different markets," said Louise Keely, senior vice president of Nielsen.
 
"In the first quarter of this year, the key emerging markets of Brazil and Russia saw large declines in confidence for the second consecutive quarter, with the drop in oil prices and the political instability in Brazil," she added.
 
Saying that confidence increased in 37 of the 60 markets surveyed, it said China dropped another index point at the start of this year after a four-point decline in the previous quarter, reflecting the recent slowdown in China's GDP.
 
The Nielsen Global Survey of Consumer Confidence and Spending Intentions, established in 2005, measures consumer confidence, major concerns, and spending intentions among more than 30,000 respondents with Internet access in 60 countries.
 
Consumer confidence levels above and below a baseline of 100 indicate degrees of optimism and pessimism.

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Quitting Housing.com was a well-calculated tactical move: Rahul Yadav
Excerpts from a freewheeling conversation at Reddit, where Rahul Yadav, CEO, Housing.com, as usual, called various people names
 
Rahul Yadav, the 26-year old chief executive of Housing.com stirred up some fresh controversy Tuesday during an interaction on Reddit. Yadav answered all kinds of question on his lifestyle, the future of housing.com, about other start-ups, venture capitalists and innovation. Among his gems was trashing Zomato.com, a restaurant listing site, and calling Sequioa a "culturally a very cutthroat VC”. 
 
Here is the select list of questions and Rahul Yadav’s replies:
 
Q: Why do you claim to have beaten Common Floor and Magicbricks based on site visits and app downloads? Aren't they bullshit metrics? 
 
RY: Yes, I believe these are really bullshit metrics. But the market (brokers, builders, investors, media) somehow cares about all these things. And perception matters. So unfortunately, we have to play by THIS (India) market's rules.
 
Q: Along with verified photos, can we also have the legal status of an apartment? Cases like Campa Cola where occupancy certificate was not provided by government will not happen if the buyer is aware of it.
 
RY: On it! We just acquired a legal and due-diligence company; they are working on cross checking all new projects that are on Housing's platform.
 
Q: What was the deal with Sequoia Capital? Can you tell us what 'other bad things' were you referring to in your email to the VC?
 
RY: We decided a slided deal between 10-15% (depending on performance) for $1mn. After 2 months of due diligence, when they realised we were running out money, they said they want to do a flat equity deal. I said ‘Okay. Let’s do it at 12.5%. They said 14.75%. When I requested more, they said, “Let’s not waste each others’ time.” We were left with no option. I came to know they have done it with lots of other ventures (TFS, Ola, Dexetra, LetsBuy...) So to cut it short, I think they’re culturally a very cut throat VC and sometimes I think that’s why they’re more successful than others. But I still condemn their practices, because I feel they’re inhuman and for me, people are the ‘why’ for everything I do. 
 
Q: What made you ask Bhavish of Ola and Deepinder of Zomato to allot half of their shares to employees?
 
R: Success of a venture is a team work. Although all start-ups give ESOPs to their employees but the problem is it’s not PROPORTIONAL to the value creation. Value is being created at x rate and is being given to the employees at y rate. x not being equal/proportional to y is the real issue. So these two names came up in my mind and I just nominated them.
 
Q: What is your opinion about Deepinder Goyal and Zomato?
 
R: A company scanning menus from last 7 years and doing no innovation. And the CEO says 'Aww. So cute.'
 
Q: Is the Zomato CEO really a d-bag?
 
R: I really do not know him much but his sense of humour sucks.
 
Q: There was a discussion on this sub-Reddit few days back, "Yay or Nay? India's [r]eal estate boom is a bubble ready to burst." what are your thoughts on this.
 
R: I do see a price correction but in long term I'm very bullish about the market given that Indian economy is soon going to be one of the world's largest and we have a huge population base with a large number of people require Housing.
 
Q: Do you think your actions are distracting for your employees?
 
R: Yes, it is distracting. But it's actually fun if it's there only for a few weeks. Beyond that, it is really distracting and does not help.
 
Q: Indian start-ups/companies are always stereotyped as having bad security practices. I have read about Ola and Freecharge on this subject. So what do you say about this? 
 
R: Indian companies are built in hurry to capture the market. So some critical pieces are often missed out.
 
Q: Don't you feel that your efforts should be more concrete in building an image that is fitting of a CEO of a growing organization instead of indulging in unnecessary shenanigans? 
 
R: I think whatever issues I have raised are very important for the Indian start-up ecosystem. The way boundaries between emails and chats are fading, I see professional diplomacy and frank conversations merging together. That's the future of conversation: quick and efficient.
 
Q: Do you think start-ups in India are currently overvalued? Do you think it is indicative of a bubble? How long do you see these valuations lasting? 
 
R: Indian market is an elephant. It is going to run/grow slowly. People/companies with patience over a period of 5-10 years will be able to leverage the opportunity. Companies, which will survive in this period, for them the current valuations, are nothing, given the opportunity size. 
 
Q: Just wanted to know your opinion on Myntra going app only and shutting down their website. Do you think it’s a wise decision and why? Would you recommend new start-ups to focus more on their site or app?
 
R: Key people's focus in the company is very important, so it’s great that they have decided to go app only. Thumbs up for their bold decision!
 
Q: What are the 3 most important things that contribute towards a start-ups’ success in the Indian start up ecosystem?
 
R: I think currently it is 1.Validated and copied idea from another market 2.Capital and 3.Marketing
What I think it should actually be: 1.Solving Indian people's problem 2. Great product and innovation. 3.Great teams and culture.
 
Q: You have mentioned that there are very few Indian start-ups that have your respect. Which are a few of these? In another comment, you mentioned that you detest how most start-ups are validated and copied ideas. Isn't Flipkart one too?
 
R: Flipkart, for maintaining relative quality (in product, service and culture). They have earned respect in terms of implementation and execution and not because of the idea.
 
Q: How do you justify your statement, "it's too early in life to get serious about money etc." when you own a Porsche Cayenne?
 
R: I 'want' to buy and media made it 'bought'. I use a rented car.
 
Q: Do you think it is required to be mean to make a start-up successful? If yes please share an instance you got mean for your start-up.
 
R: There are no rules! I play by the situation.
 
Q: If you are here to solve problem then why you wanted to quit before solving it. 
 
R: It was just a well calculated tactical move.
 

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COMMENTS

Vishal Modi

2 years ago

Thank you Moneylife for sharing this. Best wishes,

Mongolia luckier than Maharashtra, says Shiv Sena
The Shiv Sena on Wednesday said that Mongolia was "luckier than Maharashtra" after Prime Minister Narendra Modi announced an aid of $1 billion while in that country.
 
"In an extremely generous gesture, Modi has extended the amount to Mongolia for financing basic infrastructure there," the Shiv Sena said in an editorial in its mouthpiece Saamana.
 
However, $1 billion is not a small amount and when converted to Indian rupees, the figure would shake the very souls of the Maharashtra farmers who have committed suicide, it said.
 
"The farmers in Maharashtra (who) continue to be crushed under debts from banks and private moneylenders and reel under nature's onslaught await aid from the government," the Sena said.
 
As the farmers gasp for help, the union agriculture minister made it clear that the government had no plans to provide aid to the dying farmers in the state.
 
"Compared to Maharashtra, the people of Mongolia can be termed as more fortunate... The PM has announced an aid of $1 billion and revealed a glimpse of India's financial might," it noted.
 
Pointing out that in the past, Modi had helped even other smaller, developing neighbours, the Sena said there was nothing wrong in doling out "pocket money" occasionally to poor neighbours.
 
"But where was the need to give money to Mongolia? The dollar is strengthening vis-a-vis Indian rupee and we are under World Bank debts..."
 
It said Mongolia was a distant third neighbour (with China in between), enjoys 60 years of good relations with India though it became a democracy only 25 years ago.
 
But it is imperative that the prime minister exhibits the same generosity for the Maharashtra's farmers and those affected by the upcoming Jaitapur Nuclear Power Project in Ratnagiri, the edit said.
 
"We request the central and state governments to resolve the long-pending issue of farmland suicides and other matters at the earliest," the Saamana urged.

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COMMENTS

MOHAN SIROYA

2 years ago

this is true. The moment I heard about P M Modi's announcement of $1 billion to Mangolia, I had twitted that "Common Man, be ready to contribute by way of direct or indirect taxes"
This will be necessary to balance the National exchequer.

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