When we were 16-years-old, the pinnacle of achievements for most of us was probably obtaining a class rank. For the sports fraternity, taking your team to the top of the interschool leaderboards. However, how many of us ever even faced the prospect of earning a hefty sum of 42 crore rupees?
Mohammed Ali, a 16-year old boy from Dewsbury, Yorkshire was offered ₹42 crores (£5 million) for a price comparison website (weneed1.com) that he developed along with 60-year-old Chris Thorpe.
Even for a full-grown adult, that sum is no joke, right?
However, turns out, Mohammed rejected the offer from the American investors and the reasons he cites make perfect sense.
“The main reason we rejected the offer was because, if the technology and concept are worth millions already, just think how much it will be worth once people use it.”
He further added that his technology currently has no competition in the market.
Once it has been rolled out to the public, he is confident his price comparison website will become a household name.
“I understand this is a big risk for me but I want to create this as a household name, and at the same time make something for myself.”
It’s not easy rejecting such a large sum of money. However, his reasons allude to a calculated risk on his part. If a technology without a userbase is worth ₹42 crores, it would prove a lot more valuable after a public rollout.
(For technical details, look up the concept of ‘network effect’.)
Kudos, Mohammed! We wish you all the luck in the world.