A woman’s dream is now a reality
Namecheap, a marketplace for domain names and other digital assets, has just launched a $25 million round led by venture capital firm Bessemer Venture Partners.
The startup’s business model, which is similar to a company like Namecheaps, allows anyone to create a name or domain, or any combination thereof, for a small fee.
The company sells the domain name through the namecheap website, or on a mobile device, for around $0.99.
The idea was to create an online platform for people to get domain names cheaply, but also for them to get a brand and name on it.
Namecheapers were initially focused on the internet and social networking, but they have since expanded into the domain space.
“The biggest reason we wanted to go after this market is because it’s the most competitive,” said co-founder and CEO of Namecheaper, Nargesh Muthur.
“There’s a lot of competition.
You’ve got Google, Twitter, and Facebook competing with each other, so the only way to do a good business is to be innovative.”
Muthur, who has worked at several tech startups, including Paypal, has been working on the name-cheap business since 2013.
At the time, he was working on an idea to create his own domain for $10.
He had hoped to launch his company on eBay.
The first domain was for his daughter, but that project fell through.
The idea was that you would just create a generic domain name and you would sell it for $25.
He decided to go the route of a namecheaper and make a name for a brand that would eventually be purchased by a major company.
“This was the dream for my daughter, so I wanted to get the name in a domain,” Muthar said.
“But that dream is dead.”
Mithur said he sold his domain name to another name-clearing firm for around 10 cents a word and had a few million dollars left over.
That company then sold the domain to Bessemers Venture Partners for $26 million.
The new money was used to raise capital for the company and hire an investment team, he said.
The new money also went into getting a brand name.
“I feel like the company’s going to be able to build a brand for the world,” Mithur added.
Muthar’s new company is based in Bengaluru, India, and is not yet in operation.
He has two other co-founders: Ramesh Kumar and Deepak Kulkarni.