The Rise of Indian Startups

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The Rise of Indian Startups - Vani Kola @VaniKola

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02 Kalaari Capital $ 650 mn Early stage Indiafocused VC Fund TEAM 50+ Active portfolio companies Strong track record in operations and investing TRACK RECORD Snapdeal, Flipkart + Myntra, Via, Urban Ladder, Simplilearn, Zivame, Dream 11, Magzter Vani Kola @VaniKola

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03 “The world will look to India for the next big idea.” - Narendra Modi “ India is not simply emerging. It has emerged. - Barack Obama Internet users Mobile subscriptions 900 350 mn Smartphone users 160 mn India’s economy is poised to become 3 mn rd largest by 2050 1.3 bn Population 7.5 % GDP growth 24 $ bn Digital spend Vani Kola @VaniKola

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A young and fast-growing startup ecosystem 04 The emergence of digital economy, startups and tech companies Ghar Wapsi: Senior talent flow to Indian startups, fuelling growth Technology gold rush: Partners from major consulting firms lured to join startups in droves Recent grads swarming startups to cash in on the boom Vani Kola @VaniKola

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What has increased the risk appetite of the Indian Youth? $ 2bn $ 39bn 18 months 05 3650 Startups in 2015 Gestation period to test an idea Early stage VC/PE funding in 2015 The value created by Indian unicorns. Generated $2-4bn in wealth for employees Entrepreneurs are gaining more social acceptance Vani Kola @VaniKola

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India ranks third in the global startup ecosystem 59 % Starups in B2C 37% B2B, 4% B2B2C 450+ Startups received funds in 2015 90 % Startups in top 6 cities 2mn $ Average Series A deal size 25+ 300+ 26-35y 06 80K Active Premium VC/PE firms 53% founders in this age group Active Angels + Employment opportunities generated Vani Kola @VaniKola

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Global investors are betting big on India Active large Global Investors behind Indian startups Softbank DST TigerGlobal Steadview Warburg Pincus Google Capital Falcon Edge Valiant GIC Temasek Foxconn Total money invested 8bn $ + “ ‘Phenomenal time’ to be an entrepreneur in India. – Nikesh Arora, Softbank “ 07 Can’t connect the world without connecting India. - Mark Zuckerberg Vani Kola @VaniKola

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08 Billion dollar companies have emerged 1 $ bn Classifieds Leading the emergence of shared economy 1 $ bn Restaurant Discovery Going global with presence in over 25 countries 2 $ 4 $ bn bn 4.6 $ 5 $ bn 6.5 $ bn AdTech E-commerce Cab Booking E-commerce First startup to go global Revolutionizing payments Changing the way India commutes Example of a successful marketplace bn Data Analytics Largest pool of data scientists 15.2 $ bn E-commerce Delightful customer experience Enterprise Value FinTech Hot Sectors Education Internet Services E-commerce Data Analytics $ Healthcare Hyperlocal Services AdTech Mobile Tech Vani Kola @VaniKola

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More multi-billion dollar companies to be created 09 Vani Kola @VaniKola

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The trends in Indian Startup Ecosystem 10 Bangalore (26%) leads in number of deals done, followed by NCR (24%) and Mumbai (20%) 11% female founders; 18% female employees 96% startups with at least one tech founder 14% founders are exemployees of other startups With $7bn+, Consumer Internet is the most funded sector to date 65-70% of online orders are CoD 12+ startups have been founded by former investors in the last year Vani Kola @VaniKola

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11 Learnings from funding unicorns - Snapdeal Kalaari has been deeply engaged with Snapdeal starting with Series A 200K+ India’s largest E-commerce Marketplace Sellers Investing in organisation building and attracting high quality talent (People from Silicon Valley, top FMCG & Consulting firms in Sr. Mgmt.) Founder and Co-founder strong leaders with complementary skills Founders ability to attract investors at critical junctures in venture lifecycle ($1.45b raised till date) $ 5bn Annual GMV Run Rate $ 8mn Monthly Orders 130mn+ Monthly Unique Visitors Deep focus on technology for scalability and differentiation (Snaplite – A lite version of the app for 2G networks) Not selling out early (Various buyout offers) Rapid reflex. Pivoting strategy to adapt Vani Kola @VaniKola

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12 Challenges of creating companies in India Ease of Doing Business India ranks 130th globally Lack of clarity on regulations including new age business models such as E-commerce Access to Talent Over reliance on global talent pool for cutting edge tech and product understanding Market Dynamics Funding gap after initial capital raises Tech talent availability limited to 2-3 hubs Large capital predominantly coming from foreign investors only Complex indirect tax regime with state-wise differences Young founders turning into long term CEOs is not a given Poor liquidity in the market for M&A and IPO Tedious and time taking procedures for business related licenses Global labour cost arbitrage dwindling gradually Prolonged holding periods for investors Local debt options highly expensive Vani Kola @VaniKola

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Being on the board of an Indian Startup? Compliance done mostly on paper Board remunerations are not attractive. ESOPs cannot be granted to board members 13 Lack of clarity around personal liability risk; D&O not a guarantee Cultural constrains ability to challenge within board rooms Vani Kola @VaniKola

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Why you should invest in India? Large market 500Bn discretionary spend Middle class population 270mn Favourable demographics India median age 25yrs 20mn college grads entering the workforce each year 14 Strong entrepreneurial ecosystem By 2020, there would be 11,500 startups; employing over 250K people Generate super returns 20x–200x for series A investors Vani Kola @VaniKola

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15 Inviting you to collaborate with Kalaari and realise with us the ‘Make in India’ dream Let’s talk! Vani Kola @VaniKola

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