To understand the plight of Jataayu Software, you need to know the story behind its name.
In Indian mythology, the bird Jataayu is most famously portrayed in the Hindu epic Ramayana.Jataayu tries to stop the evil king Ravana from abducting the hero’s wife, but the old and frail bird is no match for Ravana. Jataayu valiantly fights on nonetheless, and in the process earns himself a place in the hearts of readers of Indian folklore for generations.
Jataayu Software, headquartered in Jakkur, a sleepy suburb north of Bangalore, is also preparing for a lopsided matchup. It provides products and applications for mobile carriers looking to upgrade customers to pricier services like multimedia messaging service (MMS), short messaging service (SMS), and instant messaging. With global giants like Nokia, Ericsson, and Huawei also looking for a share, Jataayu will have its own battle to fight.
At the helm of Jataayu’s strategy is Mahesh Kumar Jain, founder and managing director. Soft-spoken yet assertive, Mr. Jain understands the challenges that lie ahead in his company’s attempt to carve out a niche in the worldwide mobile Internet space. “When we started this company, we knew it would have to be globally focused,” he says. “We are a small company from Bangalore, but we can still provide the disruptive technology to make an impact.”
When Jataayu was launched, with funding from Tata Consultancy Services, it became what it calls the first company in India to develop a wireless access protocol (WAP) gateway, which two GSM operators in Mumbai subsequently deployed. Today, Jataayu’s products are used by Reliance, TTSL, Hutch, and BSNL, four of the five largest carriers in India. On the handset side, Motorola and Samsung, two of the world’s three largest phone makers, use the company’s products. Jataayu also has arrangements with global carriers like Orange and Vodafone, and provides enterprise solutions to global companies like FedEx and Standard Chartered Bank. Not bad for a company that has 260 employees, and until the last decade saw itself as an India-only player.
Still, the hurdles are many. First, there is the problem of funding: Jataayu has so far raised $2 million, a puny sum compared to its competitors’ deep pockets. “We are a profitable company now,” says Mr. Jain. “But it still doesn’t make sense in growing the way we are—$5 million in revenue in one year, $7 million in the next year and maybe $10 million the year after that. We need to grow faster than that, and for that we need capital.” Jataayu will be seeking further funding this year. Limited capital also limits its access to top talent, and indicates uncertainty in India’s domestic market for mobile Internet.
Mr. Jain is steeling his nerves for big battles ahead. What will separate Jataayu from his competitors, he says, is the ability to provide better products. “We can’t give up unless we know we have done our best,” he says. “Persistence is the key to success.” In the Ramayana, the bird Jataayu fought the courageous fight, but in the end was overpowered and defeated by a far stronger opponent. Mr. Jain, however, believes that today’s Indian companies can write a different ending.