History of Sify's Growth and Innovations
In the late 1990s and early 2000s, Sify made significant investments and strategic moves that solidified its position as a leading player in the Indian internet landscape. In November 1999, the company acquired a 24.5% stake in IndiaWorld Communications for ₹122.2 crore, a pivotal step that helped strengthen its offerings in the rapidly growing digital marketplace. By June 30, 2000, Sify completed its acquisition of IndiaWorld by purchasing the remaining shares for ₹325.4 crore, thereby enhancing its portfolio of internet services and content.
Sify's outreach extended beyond mere acquisitions; in 2000, the company proudly sponsored the Indian Olympic team, aligning itself with national pride and sportsmanship. This sponsorship not only showcased Sify's commitment to recognizing talent but also positioned the brand favorably in the public eye. A noteworthy initiative launched in January 2002 was the "Sify Greenmail," a six-week contest that incentivized users to send emails as a more eco-friendly mode of communication. This campaign was a clever marketing tactic that promoted digital communication while encouraging environmentally friendly practices. Additionally, in March 2002, Sify partnered with MakeMyTrip to manage its travel portal, further diversifying its service offerings.
Sify also ventured into the physical networking space by operating the i-Way chain of Internet cafes, which became a popular access point for the urban population during the internet boom. By 2002, Sify introduced wireless last mile connections, offering speeds up to 256 kbit/s, which was a significant technological advancement for its time. The company saw rapid growth, reaching over 1,000 i-Way cyber cafes across India by August 2003. Following this expansion, Sify launched video-conferencing facilities in its cyber cafes in December 2003, tapping into the burgeoning demand for remote communication tools.
In 2004, Sify explored the gaming industry by launching an MMORPG in collaboration with Level Up! Games, marking its foray into digital entertainment and gaming. That same year, a landmark legal case unfolded in the Indian judiciary system concerning domain names. The Supreme Court of India set a legal precedent in the case Satyam Infoway Ltd. v. Sifynet Solutions Pvt. Ltd., which had widespread implications for internet law in the country, impacting how businesses could protect their online identities and resources.
The trajectory of Sify's scaling was further indicated in November 2005 when Satyam Computer Services divested its remaining 31.61% stake in Sify to Infinity Capital Ventures, owned by Raju Vegesna, for US$62.62 million. This transaction marked the end of Satyam's significant ownership in Sify and allowed Sify to operate independently, paving the way for future growth and innovation in the technology market.