The History and Success Story of Justdial
Origins and Evolution
Justdial, a prominent name in India’s local search market, began its journey as a classified website in 1994. It has since evolved into a leading local search engine. The company now boasts a workforce of over 9,000 employees across 15 offices throughout India. Its database includes more than 12 million listings and covers over 2,000 cities and towns across the country.
Success Metrics
Justdial handles an impressive 1.9 million calls daily. In the fiscal year 2012-13, it recorded 1.125 billion online searches. The platform attracts 1.16 million unique visitors each day, resulting in 7.22 million daily page views. Justdial has also expanded its services internationally, with operations in Canada, the UAE, the UK, and the USA. Its mobile app has achieved over 3.4 million downloads.
The Beginnings
Founded with an initial investment of ₹50,000 in 1994, Justdial started in a rented garage with borrowed furniture and PCs, supported by a small team of 5-6 employees. Despite these modest beginnings, the company quickly emerged as the leading local search website in India.
The Founder’s Journey
V.S.S. Mani, the founder of Justdial, previously worked as a salesperson at United Database India (UDI). This experience laid the groundwork for his entrepreneurial aspirations. Mani’s initial venture, “AskMe,” launched in 1989, faced challenges due to low telephone penetration in India and an unmemorable name. Despite its failure, Mani’s experiences were instrumental in shaping his future endeavors.
Following AskMe, Mani briefly ventured into the wedding planning business with a ₹50,000 investment, which, while profitable, did not satisfy him. He then refocused on his original idea of creating a local search platform.
The Business Model
Learning from past mistakes, Mani emphasized a memorable phone number—7 times 8—for Justdial. He focused on building a comprehensive database of local businesses by visiting them personally. To drive initial usage, he encouraged clients to use Justdial and relied on word-of-mouth marketing.
Justdial’s strategy of targeting local businesses rather than big brands proved successful. The low pricing model and word-of-mouth marketing helped the company rapidly capture market share. Revenue began to flow when clients started paying for sponsored listings, allowing Justdial to expand its services both in terms of categories and geography.
Investments and Growth
Notable investors such as SAIF Partners, Sequoia Capital, Tiger Global, EGCS, and SAP Ventures have supported Justdial’s growth. In June 2012, the company raised $57 million from existing investors, building on a previous $10 million funding round in 2011. The funds were used to enhance brand value, strengthen SME relationships, and expand into new products and markets.
Marketing and Promotion
Justdial used a mix of traditional and digital media for promotion, including television, print, radio, and online platforms. A key marketing strategy was its easy-to-remember phone number, 8888888888. Celebrities like Amitabh Bachchan and Boman Irani endorsed the brand, further enhancing its visibility. Additionally, Justdial utilized hoardings in high-traffic areas and engaged in seasonal marketing campaigns.
The company also sponsored IPL teams and partnered with radio stations for promotional activities. The launch of its mobile app for Android and iOS, along with collaborations with Zomato for food coupons, significantly expanded its reach.
Revenue Generation
Justdial’s revenue model evolved from telephone directory services to online and mobile platforms. Initially, users would call for information, but advancements in technology now allow Justdial to send SMS and email search results to users.
Factors Contributing to Success
- First-Mover Advantage: Justdial’s early entry into the local search market in 1996 provided a significant competitive edge.
- Strong Brand Recognition: The company’s long-standing presence, robust database, and consistent quality contributed to its strong brand identity.
- Expertise in Local Markets: Extensive experience in the Indian market and a deep understanding of local needs enhanced Justdial’s service quality.
- Multi-Platform Access: Availability across various platforms, including the internet, mobile, voice, and SMS, as well as its mobile app, provided added convenience for users.
- Efficient Business Model: Justdial’s business model, characterized by low pricing and broad service coverage, has been challenging for competitors to replicate and has ensured a steady cash flow.
Justdial’s continuous evolution and adaptation to market needs have solidified its position as a leader in the local search industry, both in India and internationally.