Rediff on the Net, the online service provider operating out of Mumbai, is now growing up to play angel investor. The company has chalked out a plan to fund enterprising Web-based start-ups.

"The major stumbling block for any start-up is availability of funds. For an Internet start-up, the revenue comes in through advertising, which, in today's world, is not very easy to get. We will fund them in the form of sharing advertising revenue with them," said Ajit Balakrishnan, Chairman of Rediff on the Net. Although he did not divulge details, he said that the deal would be on a revenue-sharing basis and the distribution of revenue would depend on a case-to-case basis. In addition. Rediff will also provide links from its site to these start-up sites and assist in the promos. Rediff is also willing to pick the tab for equipment, office space, intial salaries of the staff etc.

Rediff, apparently, is already in negotiation with about half-a-dozen companies for similar arrangements. Company officials were tight-lipped about the identify of these firms. However, Balakrishnan said that Rediff on the Net would be looking at companies specialising in application development and content providers. "We are looking at self-reliant enterpreneurs, who, after some time, will be able to sustain themselves. In case, there is company developing applications for better e-mail features or providing good content on its site, we will support them," he said. He did not rule out integrating their technologies with Rediff's own.

Explaining Rediff's plans for the future, Balakrishnan said that the company would provide more content and improve its features on its website. He said that the company's association with Intel would help it identify future trends and tap the global marketplace better. It may be recalled that Intel has a ten percent stake in Rediff on the Net.

"Intel has alliances with all major content providers on the Internet and is developing technologies that would mature over the next few years. The alliance with Intel helps us get a better understanding of the future of the Internet and act accordingly. Once you are on the Internet, you are beyond national boundaries and each and every site on the Internet is your competition. It is technical expertise and foresight that differentiate the leaders from the others," said Balakrishnan.