‘Technologies make new biz prosper’

THE HINDU Ashok Soota, CMD, MindTree Consulting Pvt Ltd

‘We’ve a revenue run-rate of $30 million. Our goal is to be the fastest company to reach $100 million’

Ashok Soota set up Happiest Minds in 2011, a week after quitting Mindtree. An IT industry veteran, Soota (then 69) was well past the retirement age, and the industry was then going through a rough patch. Two years later, Happiest Minds is a growing company with focus on “new and disruptive technologies” such as cloud, mobility, big data and analytics.

Recently in Kolkata, Soota, Executive Chairman of the company, spoke to Business Line on life after Mindtree, focus areas of his new venture and public issue plans. Edited excerpts:

What was the logic behind setting up Happiest Minds?

The strategic rationale was the same as Mindtree. When we started Mindtree, Internet was the change. Many companies came up around it. It’s another matter most of these companies collapsed when the dotcom bubble burst. Mindtree was successful and went on to have an IPO.

But over the last 10 years, there has been no significant player out of India, despite changes in technology.

The cloud has come up, mobility is becoming mainstream, big data and analytics have developed. But who is looking at these new areas? (The idea is) to come up with a new entity that (takes) a focussed look at these developments. That was the rationale behind Happiest Minds.

How has the new venture shaped up?

These two years have been amazing. We have a team of over 1,300 people, 60 plus global customers and 16 global offices.

We have a good presence in India. Around 10 per cent of our business is here, which is actually quite high for a software company. Around 51 per cent is in the US; 35 per cent in Europe and the remaining from the rest of the world.

What are the key drivers?

New technologies. They are so powerful that we can sell in different verticals, although verticals remain the same. So logically, they will be BFSI (banking, financial services and insurance), travel, media, entertainment and retail. Plus, we have two very strong offerings –security and product engineering.

What is your run rate (average earnings based on quarterly earnings)?

We’ve reached a revenue run-rate of $30 million. Our goal is to be the fastest company to reach $100 million. (Being privately held, Happiest Minds does not share revenue details.)

Does being a young company help?

Being a young company with newer technologies has its positives. We are not bogged down by the slowdown because there is a great demand for some offerings.

Although there are niche players, nobody has come ahead and offered integration between new and existing technologies.

There is a saying that one person is good for one idea during his lifetime. And you have been under competitors’ scrutiny. What’s your take?

I was a late-stage entrepreneur. I might not have started the Wipro IT business. But I led its convergent from a computer-maker to a software company. Then, of course, came Mindtree and later Happiest Minds. I was 58 when I began Mindtree; and, 69 when I began Happiest Minds.

I will say Happiest Minds is a success in the making. But, given where we are today and in the period where we have achieved it, I have no doubt that we will go public. We have told our investors that we will go public. There is a generous ESOP (employee stock ownership plan) scheme, too. I am looking forward to a time when we can achieve all of it.

So, when will you opt for an IPO?

We would go public preferably six years from starting or maybe seven years (around 2017-18). We have four to five years. And we are on track. By the time we go public, we will look to have around 200-250 accounts.

Some IT companies have started focussing on software and services only. Does this increased competition worry you?

It reinforces that hardware after a period of time tends to get commoditised (low margins). Therefore, some players feel it’s better to move away or relocate to low-cost locations.

In case of software, there is no end to new thoughts and knowledge or ideas transforming into new businesses.

Technologies make new businesses prosper. Zomato is an example where localised information was popularised into a successful business model.

Every company has differentiators. You have to get your team right and go to market story clear.

When people come to us, they see we have a good team, a differentiated offering and a value proposition. A lot of business comes in through word-of-mouth or past relationships.

So, I really don’t see any new threat. 

Tanay Tapas

PGDM 1st

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