How Much Can Facebook Inc. (FB) Grow in India

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Facebook Inc. (NASDAQ:FB)’s Chief Operating Officer, Sheryl Sandberg, is on a trip to India clearly highlighting the importance of the Asian country considering it is the second biggest market for network. The most fundamental question according to Rishaad Salamat in an interview on Bloomberg news with Arnab Mitra co-founder and managing director of Liqvd Asia is how much can Facebook grow in the Indian market.

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The huge population that India commands continues to be the most attractive feature that continues to be attractive to many Multi-national companies. Facebook Inc. (NASDAQ:FB) penetration in the country is only 10% of the entire population clearly highlighting the huge market share that Facebook stands to gain with further investments in the country.

“I think there is a huge amount of growth that is possible in terms of share number,” said Mr. Mitra on the growth potential of Facebook Inc. (NASDAQ:FB) in the country.

Quality of people that remain untapped according to Mitra remains the biggest question outlining the fact that most of them should have already joined the network.

Mitra is also concerned with the fact that Facebook Inc. (NASDAQ:FB) has brought to many changes on its site such that people are nowadays not seeing their friends as it used to be in the past. Questions are already being raised in India as to why people do not see some of the things that they were used to seeing in the past.  Many youths are already leaving the platform something that the company needs to work on.

One major hurdle that Facebook Inc. (NASDAQ:FB) might face in the coming future with regards to the growth of the network is the fact that the rate at which people are joining the network is high compared to the development of infrastructure for supporting the network. Mr. Mitra attests that there have been some scenarios where the network has been quite slow due to the burdening of the network, as a result, of too many people at a given time.

”There are too many people who are  joining  on a daily basis  this essentially means that connections are essentially becoming much slower than what we expected it to be,”  said Mr. Mitra.

The Emarketer projects that Facebook Users in India might rise to about 40% by the end of this year. Trust levels of the network are also declining in India according to Mitra something that the company needs address as soon as possible.

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