Rediff.com moots India listing, buys in Tachyon

Rediff.com, the $30 million internet firm, has acquired a minority stake in Bangalore-based software firm Tachyon.

Tachyon has developed a software 'Quillpad' which enables internet users to type in English alphabets to input words in other languages in the respective scripts on the basis of phonetics, allowing them to communicate in the language of their choice. Rediff.com has adopted this technology to its email and messenger platforms.

"We aspire to encourage promising start-ups to develop innovative world class products that support our business. As part of such efforts, we are delighted to have an opportunity to invest in Tachyon. Nowadays, capital is falling through the roof in India. The differentiation is that we let entrepreneurs work on their passion and not interfere with day-to-day
operations," Ajit Balakrishnan, founder & CEO of Rediff.com, said.

Nasdaq-listed Rediff has cash reserves of close to $60 million and adds around $1 million to it every quarter is trying to use its cash backing ventures after going through a decade of ups and down in the internet domain. "We have lived to tell this tale," said  Balakrishnan, who gave birth to the business model based on the world wide web in India.

Rediff, whose stock on Nasdaq is now trading at around $19, is also looking at listing in India.

"Logically that should happen given that we are an Indian firm, but we have not decided the time. It will be within the next five years," he added.

Balakrishnan also dismissed speculations that he might sell out to the global majors such as AOL or Yahoo who are looking at entering or strengthening their Indian base.

Rediff.com has a user base of close to 50 million with 90% of them in India and with necessary utilities such as bill payments, travel reservations coming on to the internet and with growth in broadband, this company is set to reap the benefits of this growth.