HYDERABAD: With internet penetration rising and businesses increasingly realising the importance of digital presence, a new segment of domain name registration, buying, brokerage, and consultation is emerging as a new sector worth $25-50 million in India. Recent domain buys by several reputed companies for huge amounts point to the rising importance for the domain names, eventually creating new opportunities for the businesses and entrepreneurs focusing on the segment.
“Businesses today are ready to pay any amount to own a domain name. They are realising that being online is the preferred way to reach out to consumers and make an impact,” Dr Govind, former CEO of National Internet Exchange of India, told Express on the sidelines of a conference held here on Monday.
According to him, not only reputed companies but even start-ups and small businesses are particular about owning a domain name. And, many companies are snapping up not only the ‘.com’ extension but all other extensions to secure their business even in the future.
“This is creating huge opportunities for the companies focusing on domain name registration and consultation business,” Govind added. With the number of MSMEs having digital presence being less than 10 per cent, the sector holds huge potential for the companies focusing on the segment. “Businesses are also paying huge sums to acquire their exact names. For instance, Indian start-ups Blackbuck.com and purple.com paid about $10,000 and $100,000, respectively, for domain names,” said Prakhar Bindal, CEO of Namekart, India’s largest domain brokerage and consultation firm, pointing to the huge business and growth potential in this sector.