Home > Entrepreneurship, India, Technology > Deloitte Tech Fast 50 2010 India – what is wrong with such lists?

Deloitte Tech Fast 50 2010 India – what is wrong with such lists?

November 14, 2010 Leave a comment Go to comments

Over the weekend news poured in from several geographies around the world as Deloitte announced their regional lists of the fastest growing technology businesses.   I was one of a lucky few that was  invited to attend the gala on Friday in Bangalore where the India Tech Fast 50 was announced.   The press has some coverage of the event (here) and the fact that it produced some surprises.

It was a great opportunity to meet several great entrepreneurs, but it must be noted that the actual ranking does not mean much to me.   If I was Deloitte, I would rethink how they do this.

  • At #50, was MPhasis Ltd, an IT services firm with over $1B in revenues.    Their growth rate was nearly 400% (CAGR over 3 years, self reported and not verified by me).   However, they ranked way lower than companies who were in the top ten because they grew 1000%+ off a very small base(less than $1M in Revenue).
  • This years topper, FatPipe Networks, is essentially a Utah based American business with a large engineering operation in Chennai.  In fact it figures on several lists of fast growing American businesses including the Inc 500.   How do you compare them to Indian start-ups?

The first of the two issues is harder to address – most unlisted businesses do not want to share revenue data.  Yet, there is enough public information about them to cast them in buckets of “small”, “medium” or “large” businesses and to somehow weight them or recognize them within their category.  The second is  a matter of cursory diligence and needs to be “fixed.”

Despite its flaws,  I am glad I was at the event.  I continue take a keen interest in the list for several reasons.

  • Investors like to troll the list for potential investment opportunities that they may have missed
  • I like to see how my investee companies fare (e.g. Manthan Systems appears at #30 this year)
  • As a co-founder of Omniglobe Networks in Montreal, I was pleased to see OGN feature at #8 on this years Canadian Fast 5o list.

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