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In 2004, Baazee.com was acquired by eBay for a whopping Rs. 240 crores. However, Avnish Singhal's (founder baazee.com) vision was to make Baazee the Indian eBay and his venture was also based on eBay's business model only. Despite this fact, he sold his company to a bigger foreign player before it could challenge eBay.

Daksh eServices is one of the BPO pioneers in India who also helped India in branding itself as the BPO center of the world. It is among one of the most successful BPO companies in India. In April 2004, IBM - a global conglomerate - bought Daksh for an undisclosed amount (experts believe, for around Rs. 750 crores). It is yet another case in which an Indian company, which could have made big in the coming years, was taken over by a foreign giant.

Foreign corporations acquire these companies primarily for an entry method to new markets. But more important argument in this case is why these young entrepreneurs sell their babies at very nascent stage. Is this because these young entrepreneurs believe that if they don't sell their company right now, their competitions will throw them out of the market in the times to come?

Are they being pragmatic or being pessimistic?

On the other hand, we have some companies like Infosys, Wipro, etc., which (probably) would never be sold. We tried to find the reasons why some companies are sold while some are not?

Vision

Promoters believe that in the long run, they will be in a dominant position in the market. They focus only on first three positions in their industry. They believe in their business model and they have skillful people to implement it. Companies who lack such a vision are often sold out in early stages after their incorporation.

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* Contributed by: -
Manvendra Singh & Nipun Jain,
Class of 2006,
Amity Business School, Noida.