Brothers Bhavin Turakhia and Divyank Turakhia often missed their school bus in the evening because of their love for computers. They took a crowded BEST bus to go home after spending extra hours with the machines at their school. “We did not have a computer at home. Our teacher gave us access to the computer room even after school hours. We used to get excited by the green coloured floppy drives which were the norm those days,” said Bhavin, 37, at his office in Andheri.
Their lives have revolved around computers ever since, and they have made a fortune out of it. Their internet and tech businesses are worth $1.4 billion, and they recently sold one of their companies to a Chinese consortium for $900 million.
The Turakhias founded companies even as students. They did consulting for companies on software development and networking, and created websites for them. Their first venture, a website hosting and domain registration company called Directi, was founded in 1998, when Bhavin was 19 and Divyank 16. “We signed up a lot of customers from abroad as the market was very nascent in India. We were profitable from the beginning and did not face challenges with regard to investment as we had the money for our growth. In the first quarter itself we made enough money to pay back the loan which we had taken. We had good growth from the international markets whereas the Indian market got us only single-digit revenues,” said Divyank.
Between 2000 and 2014, they founded BigRock, ResellerClub, LogicBoxes and WebhostingInfo. In 2014, Directi sold these four portfolio companies to the Endurance Group in a $160-million deal.
It was their father, Mahendra Turakhia, who lent them Rs 25,000 to start Directi. The brothers adore their father, who was a chartered accountant. He instilled in them the habit of reading, and got them books on different subjects, particularly biographies and autobiographies. “By reading many entrepreneurial stories we got the sense that if we work hard towards a goal we can very well achieve it. We did not have any mentors as such, and these biographies were really an inspiration for us. Besides this, we acted as springboards to each other,” said Bhavin.
Their parents hail from Gujarat and settled in Mumbai before the children were born. “My parents are very modest. They ensured that we got the best education and care,” said Bhavin.
The values they acquired at home were crucial in the journey. “I feel that everyone around us saw the passion in us and wanted to help and support us,” said Divyank. “We are fortunate in that way. We had a very modest upbringing and we used public transport as our parents did not have a car. They had to save money to buy us books. The knowledge gained over time by reading has always helped us.”
The computer wizards do not have a degree in computer science or engineering. Bhavin joined Ruparel College in Mumbai and realised that courses in computers or even engineering did not offer anything more than what he already knew. “I decided that I will drop out to pursue business even as my brother decided to join a commerce college. However, my parents insisted that I get a degree so I joined for BCom at Sydenham College of Commerce and Economics and at the same time continued consulting companies,” said Bhavin.
Hiring the right people is the most important aspect the Turakhia’s business management. “We always look out for people who are smart and can get things done. The quality of people we hire is far higher than anyone else. I spend 20 to 30 per cent of my personal time on hiring the right kind of people,” said Bhavin.
Sandeep Ramchandani, who has been working with the brothers for more than a decade, said he was attracted by their enthusiasm. “I saw their ambition and felt that both had a drive and passion to make a global impact. I have been given a free hand in running Radix, which is into domain extensions. Both the brothers have the audacity to take on the big companies, no matter how powerful they are,” he said.
And, they keep learning to remain themselves competitive. “Business is managing risks, and you should manage risks in such a way that you do not blow up your business. Most entrepreneurs manage risks for better performance and keep changing plans,” said Divyank.
In 2010, Divyank founded MediaNet, an online advertising space business focused on the US market, in Dubai. “We specialised in contextual advertising and had only one major competitor in the form of Google in this space. We shifted out of India and got a house in Dubai because there were some foreign exchange regulations in India. Dubai is well connected and both of us like the city. We have got a house in Los Angeles and Divyank shifted there as a majority of our clients are in the US,” said Bhavin.
Flying high: Divyank Turakhia.
In 2015, Divyank started getting suitors for MediaNet from China and the US. “The second largest market in the digital advertising space is China. We had zero presence there but it was challenging in China as you need to take help from the locals to run a business there. We felt that if a Chinese investor takes interest, we could go ahead. Miteno, one of the first companies who had expressed their interest in us, formed a consortium and acquired us. The process started in 2015 and the transaction closed in 2016. Divyank still runs the company but it is owned by the Chinese consortium. However, it will take a few months before the whole legal process is completed,” said Bhavin.
The brothers spend most of their time overseas. They have houses in Dubai, San Francisco, Los Angeles, Vancouver and London. “We spend 5 to 10 days in each location. My schedule is split between these cities. However, Divyank divides his time mostly between Los Angeles, San Francisco and Dubai,” said Bhavin.
They are both sports freaks. Divyank is a trained pilot and Bhavin loves water sports and snowboarding. “We also like watching Hollywood movies,” said Bhavin. Both are still married to their first love—computer.
The Turakhias have a direct approach in running their businesses. “They are humble and down to earth. There is an open door policy for everyone and I can directly message him. Bhavin is paranoid about efficiency. He has a process for everything. He works more hours than anyone else in the company,” said Ninad Raval, director of product and design at Flock, one of the brothers’ companies.
They do not count their achievements in terms of money. “We have always focused on creating value, not valuation,” said Bhavin. “I am seeing that a lot of startups coming up in India these days chase valuation. Chasing valuation does not achieve the same goal but instead of that, creating value will in turn create valuation. If you create value for your customers you will end up creating valuation as a side product. I always tell young entrepreneurs to focus on value and not valuation.”
BROTHERS
* Bhavin Turakhia was born in 1979 and Divyank Turakhia in 1982
* Father, a chartered accountant, and mother, a homemaker, hailed from Gujarat but settled in Mumbai
* The boys studied at Arya Vidya Mandir, Bandra, where they spent long hours at the computer lab
* Modest upbringing; did not have a computer at home until Bhavin was 15, and they used to commute by public transport
* The brothers earned while in school and college by consulting for companies on software development and networking
* Started their first company, Directi, in 1998 when Bhavin was 19 and Divyank 16, for which they borrowed Rs 25,000 from their father
* The success of Directi attracted foreign investors and later led to the inception of other companies, most notably MediaNet in 2010
* Both of them now own homes in Mumbai, Dubai, San Francisco, Los Angeles, Vancouver and London
