Ardent Capital overview by Adrian Vanzyl - WebMob Thailand - April 2013

Company OverviewAdrian Vanzyl | April 2013

Table of ContentsMarketsCompanyTeamLabsTechnologyPortfolioInvestmentAppendix

Market Opportunity Unit ID SG PH VN TH MY China US

Population M 248 5.2 95 88 69.5 28.9 1344 312

# Online M 55 3.37 29 30 20.6 18.5 513 245.2

% Online % 22% 65% 31% 34% 30% 64% 38% 79%

# Facebook Users # 38.8 2.6 27.7 8.5 14.2 13.2 NA 167.8

# Ecommerce Shoppers # 3.6 1.2 5.8 12.6 11.7 10.5 164 184

Ecommerce Shoppers % 6.5% 36% 20% 42% 57% 57% 32% 75%

Retail Sales USD B 134 31 32 108 139 51 2,380 4,700

B2C Ecommerce Market USD B 0.9 1.1 1 0.5 4.3 0.7 119 343

Ecommerce % of Retail % 0.7% 3.5% 3.1% 0.5% 3.1% 1.4% 5% 10%

Spend Per Spender USD 252 917 172 42 365 68 726 1,864

Source: Nielsen, Comscore, PWC HK, ATKearny, researchandmarkets.com, Dailysocial, smu.edu.sg, ecommerce.org.sg


Ardent was founded to capitalize on the following drivers shaping commerce in SEA:

• Rapid and dramatic increase in the middle “spending” class

• Shift of retail buying behavior to online from traditional

• Increasing cost of staff, marketing, and rent for traditional businesses to scale

• Search for technology to improve business processes and find more efficient sales and distribution channels

• Companies (local, regional, & global) have been instructed to enter the online commerce space aggressively. The lack of local talent and increased competition has accelerated the need to acquire vs build.

Building brand new internet brands– That affect > 10M consumers– Do this quickly (18 months)– And inexpensively (social media)

Proven track record & global precedents– Competitive landscape still immature, but

changing fast– Customer acquisition costs rapidly increasing

Focus and Thesis

Ardent CapitalAn investment vehicle for S.E. Asia structured as a holding company and registered in Hong Kong. Owns equity in each portfolio company. Not a fund.

We invest in SEA companies that are:• Consumer centric, transaction focused

ecommerce• Horizontal platforms that drive customer

acquisition.

The company’s assets include: Growing portfolio, proven management team, brand, Methodology, and IP


Companies we have built

Content Management Systems (CMS) Content creation, content curate, sourcing, freelance management, and syndication, XML feeds

Media Experience:

Media Companies:

Featured Partnerships:

Ecommerce Companies:

Dailydeals, ecommerce, retail, travel, payment gateways, delivery, sourcing, analytics, business intelligence, Yield management, Sales, Customer Service

Ecommerce Experience:

Featured Clients:

Advertising Companies:

Full Service Digital Agency, Social Media Agency Adnetwork: Strategy, Design, Social, Production, Dashboard Reporting, Targeting, Analytics

Advertising Experience:

Featured Clients:

Adrian Vanzyl, CEO & Co-FounderEarly stage investor and technologist in the Digital Media space, spending most of his career in Silicon Valley in various venture backed startups. Ten years with Blumberg Capital in San Francisco (most recently as CTO for this $100M early stage digital media focused fund, where he was also CEO of two portfolio companies). Formerly CTO of Sausage Software (and board member at its IPO), CTO of LookSmart (IPO on Nasdaq). Group Manager at Microsoft in the US (post the successful exit of LinkExchange).

Paul Srivorakul, Chairman & Co-Founder, Head of Ardent LabsPaul is a Thai- American serial entrepreneur who has successfully exited three companies in South East Asia in the last year. He is the Founder and ex-CEO of DMS Group, New Media (acquired by STW Group) , Admax Network (acquired by Komli Media) , and Impaq Interactive (Microsoft Advertising). He started his career in sales at Ask Jeeves Inc. (ask.com) in the U.S. Paul was co-founder and most recently group CEO at Ensogo Group (acquired by LivingSocial)

Team

Piers Bennett, CFO & Co-FounderPiers was the CFO of Ensogo and most recently LivingSocial in SEA, and former CFO of DMS Group. He has nearly 20 years of finance, management, business development, strategy, and sales experience in the IT, online and telecom industries in Asia, the UK and the United States. Some of the companies he has worked for include British Telecom (BT), Look Smart (Japan) and ValueCommerce

John Srivorakul, CTO & Co-FounderJohn co-founded Ensogo Group, DMS Group, and New Media with his brother Paul. He served as CIO and oversaw all aspects of the company’s IT systems, development, and information management strategy. John began his career at Apple Inc. in the U.S.

Tom Srivorakul, Investor & AdvisorTom is currently CEO of Ensogo/LivingSocial Thailand. He started his internet career in 2004 as head of operations for Impaq Interactive, an exclusive partner for MSN in Thailand. He became the Managing Director in 2007 and expanded the Impaq and MSN business to the Phillippines which included sales, marketing, content, and development.

Team

Nick Clayton, Investor & AdvisorNick is an entrepreneur and angel investor with over 30 years of management, finance and professional advisory experience in a variety of industries in Asia and the UK. He is the non-executive Chairman and shareholder for two travel businesses and a retail barter exchange franchise, as well as the owner of a mountain-trek/fitness retreat and health spa. He was previously chairman for DMS Group and Admax Network. He was also an early investor in Ensogo Group which sold to LivingSocial.

Our Investors:

• Founding team

• Siemer Ventures (USA)

• Recruit (Japan)• Via the corporate venture capital arm of Recruit Holdings in Japan

• GMO (Japan)• GMO Venture Partners is a Japanese corporate VC firm and a member

of GMO Internet Group.

• SEA angels, including Julian Persaud (Google), Mat Ward (Komli), Peter Kopitz (Zalora)


Anything (Path to exit with Axiata/Dialog) Anything.lk is the leading online retailer and social media marketing company in Sri Lanka. Launched in June 2011, the company has grown to over 100,000 members with the largest Facebook Fanbase of any company in Sri Lanka (181,000). Anything.lk includes: Daily Deals, Travel, Events/Ticketing and Online Retail and was the first Daily Deals company globally to offer customers the ability to pay using their mobile phone accounts. The company has > 90% market share.

Burufly (Coinvestors Walden and Batavia)Burufly is Indonesia's first Social Travel Site, focusing on curated content to expose the beauty of Indonesia. Burufly helps travelers to research, plan and book their dream holiday and connects them with friends who share their passion for exploring Indonesia. More than just leisure travel, Burufly empowers local consumers to view the platform as a place to share "every day’s journey" as an expression of their point of view of their locale.

PlayBasis (Raising Series A in Q3 2013)Playbasis is a platform that gives brands, publishers, and merchants the ability to add fun, interactivity, and engagement to their products and services. We add a layer of social features and game mechanics on top of a brand's existing content. We call it 'Gamification' - we take the elements that make games fun & addicting and apply them to digital content. When you motivate and engage your audience by making things more fun and enjoyable, they will do more, stay longer, and invite their friends.

anything.lk

Playbasis.com

Active Portfolio

Burufly.com

Active Portfolio

WhatsNew.asia

WhatsNew A family of vertical ecommerce sites, starting with Pet and Parenting verticals.

Syndacast.com

Syndacast (Operating since 2010)Syndacast is a performance driven digital agency with 45 staff and offices in Bangkok, Jakarta, and Manila. Syndacast specializes in online travel, ecommerce, and other transactional focused businesses.

e27(Operating since 2007)e27 is a media company focused on growing Asia’s technology startup ecosystem. It reports on tech startup news, trends and personalities relevant to startup communities in Asia and also organizes the much-celebrated Echelon conference.

e27.co

Active Portfolio

aCommerce.asia

aCommerceAn end to end ecommerce platform, including warehousing, logistics and customer service

Petloft.com

PetloftPets vertical, part of the WhatsNew family

VenbiParenting vertical, part of the WhatsNew family

Venbi.com

aCommerce

• $3M investment from Ardent• Full platform solution for ecommerce

companies– Warehouse– Pick and pack– Logistics and delivery– Customer service– Payment gateways

• Allows a new vertical to launch in weeks

aCommerce Warehouse in BKK

Customer Acquisition

• We are experts in customer acquisition

• Deep knowledge, SEA specific, of

– Ad networks, FB, Google, Instagram, Pinterest

• Our investment in Syndacast

– Expert knowledge in performance driven advertising

• Examples:

– 450,000 Facebook fans in 8 weeks for Whatsnew

– 200,000 fans in 8 weeks for Burufly

• Fire hose of traffic onto our portfolio companies

Technology Platform

• Built large scale, robust platforms

– Admax Network(2B Impressions per month, 90M uniques), Ensogo (3M uniques, 3M email subscribers)

– Create flexible, re-usable commerce platform components with deep integration of social features

• Ardent owns IP, each company gets unrestricted non-exclusive snapshot of code base as needed

The Extended Ardent Network

• Hiring – find the best talent, inhouse recruiter• Funding – find the best co-investors• Traffic – Partners – bizdev for distribution, customer acq– Ad Agency and Brand relationships– Media Company relationships– Ad networks (Desktop & Mobile)

• Exits– Regional and international network, maximize return

Co-investors

We have individually and as a group co-invested with these firms:– Walden– Batavia– Singtel Innov8– Axiata– IDG Ventures– Softbank– Intel Capital– Rebate Networks– Blumberg Capital

• LTV vs CPA analysis• Cohort analysis to understand quality and trends• Evaluation vs efficient frontier for expansion ie look at

average and incremental ROI. • Evaluate acquisition of new vs activation of existing

consumers• Evaluate multi-stages of acquisition pipe– Leads > suspects > contracts > sales– Uniques > subscribers > spenders > big spenders

Business Intelligence – Consumer Analysis

• Experienced accountant when revenue starts.

• All operational tax issues resolved on day 1.

• Accounting focus on efficient operations consistent with IFRS

• Finance focus on key control points that influence business development.

• Encourage teams to take known risks

Business Intelligence – Finance

Brands (Products)

Media, Advertising, Telecoms, Companies

enteringTech giants expanding

and investing aggressively

Product sourcing,

partnerships, & Data

Platform for brands &

launch new models

Ecommerce market share

(S.E. Asia)

Advertising market share

(S.E. Asia)

Traditional On/Offline Retailers entering

Market size: $10B (15% YOY)

Market Size: $15B (25% YOY)

Ardent CapitalSyndacast, WhatsNewPlaybasis, and New Investments

Ardent LabsVerticals, platforms, ownbrands, logistics, delivery

Competition:Traditional retailers ($500B market) expanding online

Ardent needs to build end-to-end ecommerce solutions for brands/products to win in SEA

Competition: Businesses looking for new revenue streams in digital

Ecommerce end-to-end Solutions

Competition: M&As in discovery

commerce, lockers, delivery, and gifts (Amazon, Google,

Facebook and Ebay)

Strategy & Design (Design, Usability, Store Front, Payment)

Fulfillment (Logistics, Warehousing, & Shipping)

Operations (Production, CRM, Accounting, Reporting)Service (Notifications, Returns, Customer Service, Account Mngt.)

Technology (Dashboards, Personalization, Integration, Multichannel)

Ops

Mar

ketin

gCustomer Acquisition (Search, Display, Social)Gamification (Loyalty Rewards, Engagement, Referrals)Social Graph (Personalization, Real-time targeting, Profiling)

Branding (Endorsements, Sponsorships, Partnerships)

Technology (Social APIs, Retargeting, Analytics)

Tech

Magento & Wordpress (Ecommerce, Shopping Cart, Content Mng.t)Bright Pearl (Inventory Management & Warehouse Management)GoodData (Data Warehouse, Data Mining)Google Analytics, Chart Beat (Analytics, AB TestingRackSpace, AWS (Hosting & Intrastructure)

B

B

C

Ardent’s ecommerce “end-to-end” strategy

Ecommerce business models Ardent can build/invest with brands & their products

Private Sales Vertical Marketplace Subscription CommerceArdent Owned Brand

Manufacture Export Import Social Commerce

Brand Importer Distributor Retailer?? Ardent Owned Brand

All Products: Manufactured, Imported, & Exported


Technology - EcommerceMultiple Models• Daily Deal Commerce• Private Sales• Subscription Commerce• Social Commerce • Tradition Commerce

Socialization• Facebook Integration• Twitter Integration• Google+ Integration• Pinterest Integration• Gamification (Playbasis)• Loyalty programs

Payment• Credit Card / PayPal• Credits/Rewards Points• On/Offline Bank Transfer• OTC (Tesco & 7 Eleven)• Mobile (SSID, HTML 5)

Shipping • In-Store• DHL• Fed Ex• UPS• Kerry Logistics • JNE

Languages• English• Thai• Bahasa• Full multi byte

support

Currencies• Thai Baht• Philippine Peso• Indonesia• Rupee• USD

• eCommerce Platform• Shopping Cart• Content Mngnt

• Inventory Mngnt• Warehouse Mngnt

• Sales Management• CRM

• Infrastructure• Hosting

• Data warehouse• Data mining• Dashboards• Reporting• Business Intel

• EDM• Email Marketing

• Customer Service• Helpdesk• Call center• Email support

Technology - Platforms & APIs

• Analytics• A-B Testing

In-house

What do we invest into?

• Team in SEA• Customers in SEA• Regional focus (at least 4 countries)• Consumer focused, ecommerce, B2C• Platform plays that power the above (digital

media, ad tech, gamification)• Early stage (seed)• Where we can add value

Adrian Vanzyl CEO & Co-FounderEmail: [email protected]+66 81 930 8308

946 Dusit Thani Building, 4th fl.,Rama IV Rd. Bangrak, Bangkok,10500 Thailand

Thank you

Ardent Capital overview by Adrian Vanzyl - WebMob Thailand - April 2013

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