Product LaunchPAD November 9-10, 2011 A preview of a few companies who are making a difference to the product ecosystem
Jan 13, 2015
Product LaunchPADNovember 9-10, 2011
A preview of a few companies who are making a difference to the product ecosystem
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Key messages
India is entering the product era1.• Over 2400 product firms generating revenues ~USD 2.0 Billion
• The cost of setting up a product startup has gone down significantly from hundreds of thousands of dollars to a few thousand dollars.
• This coupled with increasing connectivity, talent pool, ecosystem readiness, convergence of platforms has created a very favorable environment for product startups to flourish and compete globally
The past five years have seen the emergence of new consumer segments for products such as SMBs and Government2.• Small enterprises use startup products across both core processes and non-core
processesp
• The government sector uses Indian products for local governance and for information management across public sector units
Key messages
Software products industry enabling balanced regional growth3.• Number of product firms from tier 2/3 cities have almost doubled in the last 3 years
• Over 330 product companies based in Tier 2/3 cities
Established product firms experimenting with new models and initiatives4.• Multiple growth strategies followed by industry players
Technological disruptions improvement in infrastructure and availability of capital5
• Established product firms are expanding horizons, incubating products for new verticals and segments, and formulating partnerships and alliances
Technological disruptions, improvement in infrastructure and availability of capital have helped create a level playing field5.• Improving connectivity across the country, specifically in tier 2 and tier 3 cities, and higher
access to computing is growing the consumer base for homegrown product software and servicesservices
• Availability of skilled talent, disruptive technologies, sources of funds and strong industry support driving the market
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NASSCOM Product Conclave November 20113
Key messages
Thriving startup landscape, focusing on localized solutions for India6.• ~1100 startups in last 5 years; Key focus areas for startups include mobility, SMBs, E-
Commerce and Education
• Education startups are leveraging IT in developing digital contents for students, provide distant learning virtual classroom and other related servicesdistant learning, virtual classroom and other related services
• Startups focusing on serving the large SMB market are leveraging cloud and web based technologies to widen their customer reach
The funding ecosystem has seen significant enhancement7.• Software , internet and mobile industry accounts for almost 66% of total VC investments
in Indiain India
• Investment community in India comprises of VCs, Angel Investors; additionally various state and national government schemes now in place to provide funding
• Indian success stories such as Makemytrip Flipkart inMobi has increased confidence• Indian success stories such as Makemytrip, Flipkart, inMobi has increased confidence levels of global VCs to invest in Indian product startups
Indian software products market- Picking up t dtremendous pace
Number of Product firms in India2400+ Number of Product firms in India
USD billion worth revenue from Indian products
2400+
1.9
Growth in revenue since last 5 years22%
Major product segments
M j hi l t f d t fi
6
30 Major geographical centers for product firms
Number of product categories
30
46
Source: Zinnov analysis, NASSCOM
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Over 2400 product firms in India generating USD 2 billi~ USD 2 billion revenues
Indian Software Product Business Landscape
P d C i E R (USD billi ) D i R (USD billi )Product Companies Export Revenue (USD billion) Domestic Revenue (USD billion)
2428
CAGR
14%
1 91573
1888
14%
22%
1.1
1.4
1.9
1260
1573
1.3 27%
22%
0.7
0 5 0.60.4
0.7
1.0
15%
FY 2006 FY 2007 FY 2008 … … FY 2011 (Est)
0.3 0.4 0.5 15%
Source: Zinnov analysis, NASSCOM
Explosive growth, especially in the digital and b i d ti it ft g t
Increase in number of Product Firms
business productivity software segments
Segment 2007 2011 Key UsersCAGR
BFSI, telecom, Government, Datacenters
Server/Infrastructure software and Storage
Segment 2007 2011 Key Users
121 147
843
5%
CAGR
SMBs, Mid-market, Enterprises
Consumers
Business and Productivity Software
Digital
595 843
5841051
9%
16%
SMBs, Mid-market, Enterprises
Consumers
Client / Desktop, SystemSoftware and Tools
Digital 584
67 91
16%
8%
Hardware equipment manufacturersSemiconductors 15 24
272
12%
Others
Source: Zinnov analysis
191 2729%
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NASSCOM Product Conclave November 20115
New customer segments for Indian products h g d C SMB G t
• Large enterprises within telecom and healthcare sectors use startup products
have emerged- Consumers, SMB, Government
• Products are generally deployed across non-core processes such as value added services (VAS) within the telecom sector and management information systems (MIS) within the healthcare sector
• Consumers use most of the products within the e Commerce and Internet
B2B
VE • Consumers use most of the products within the e-Commerce and Internet category
• E-Commerce revenue have grown significantly over the past few years due to increasing awareness, improving connectivity and payment scenario
B2C
N
C
URV
• Small enterprises use startup products across both core processes and non-core processes
• Indian products are gaining traction across all major sectors such as retail, manufacturing professional services
B2b
ADO
PTIO
N
manufacturing, professional services
• The government sector uses Indian products for local governance and for information management across public sector units B2G
A
Source: Zinnov analysis
Products industry enabling balanced regional d l t Sig ifi t g th i Ti 2 itidevelopment- Significant growth in Tier 2 cities
Product companies split across major regions in 2011 and growth over 2007Tier 1 Cities
Tier 2 Cities
2007-2011 CAGR
735
NCR
11%18%
330
Bangalore Mysore, Belgaum, Gulbarga, Hubli
Hyderabad Secunderabad, Vishakhapatnam, Vijayawada
481 10% 13%Tier 2 82
Vijayawada
Pune Pune
Chennai Calicut, Trivandrum, Madurai, Coimbatore, 481
200
Mumbai
P
Hyderabad
Kolkata
9%
10% 13%
18%470
cities82
Cochin, Vellore
Mumbai Goa, Ahmedabad,Vadodara, etc.
950
Pune
Bangalore
11%359 Chennai10%
Delhi Gurgaon, Noida, Chandigarh, Mohali
Kolkata Patna, Bhubaneswar
Note: The cities marked in bold are emerging Tier-II cities for product startupsSource: Zinnov analysis
Product companies have grown fastest in Tier 2 cities
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Established product firms expanding horizons….
• Product firms are focusing on emerging sectors such as SMBs, retail, healthcare, and g g g , , ,education.
• These sectors face several challenges which can be overcome by technology
Product firms are exploring emerging technologies such as Cloud computing and
Vertical Focus
• Product firms are exploring emerging technologies such as Cloud computing and virtualization to deliver solutions to customers.
• These technologies help reducing cost of acquisition for customers due to amortization and economies of scale
Product Architecture
• Product firms are innovating on business models to enable reach by partnering both across and within industries.
• Large product firms are partnering with smaller channel players while small product firms are partnering with large enterprises
Business Model
s a e pa t e g w t la ge e te p ses
• Large product firms are broadening their focus beyond the metros and tier-1 cities.
• A large addressable market opportunity which is currently untapped lies within the tier-2 and tier 3 cities and prod ct firms are on their a to create this market
Location Focus2 and tier-3 cities and product firms are on their way to create this market
Source: Zinnov analysis
Disruptive technologies and increasing IT d ti l l h b t d th d t k tadoption levels have boosted the products market
• Cloud computing
• Mobility solutions
• Number of engineering graduates passing out in India is growing at more h
Key Drivers for Software
Huge “Native to IT” Population
Base
Emergence of Disruptive and
Innovative Technologies
• Sustainability
• Social networking
than 20%
• Over 80 million active internet users in India presently
for Software Product
companies
Technologies
presently
Availability of VC funding and expansion of seed funds
• Many marquee VC firms such as Sequoia Capital, Helion Venture Partners and Nexus Capital India have dedicated India funds to fund seed stage companies Ventureast an Indian VC firm has a dedicated fund BYST growthIndia funds to fund seed stage companies. Ventureast, an Indian VC firm has a dedicated fund, BYST growth fund, for SMBs
• Global MNCs such as Citrix have started incubators and seed funds to attract product startups
Source: Zinnov analysis
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NASSCOM Product Conclave November 20117
Improved infrastructure, availability of capital d t l t h t d k bl
• Improving connectivity across the country, specifically in tier 2 and tier 3 cities, and higher access to computing is growing the consumer
and talent have acted as key enablers
Better connectivity & computing infrastructure
base for homegrown product software and services
• National Broadband Policy aims to substantially increase the reach of broadband and double the existing speeds
• Steps to ease procedural aspects of setting up a business
Favorable government policies
computing infrastructure
• Disruptive web technologies in mobile and cloud computing are providing Indian startups a level playing field
Key
SaaS / Cloud computing
• The number of skilled computer science, information systems and design engineering graduates is on the rise
Key Enablers Availability of skilled
talent
• Indian success stories such has increased confidence levels of global VCs to invest in Indian product startups
• The evolution of the Angel networks is helping seed stage startups
• Industry veterans and leaders are increasingly willing to invest time,
Ability to raise funds
y g y gmentor and champion the cause of startups in their chosen area
• Industry-Startup-Academia collaboration is on the riseIndustry support
Source: Zinnov analysis
Thriving startup landscape- ~1100 startups i th l t 5in the last 5 years
Indian Software Product Startup Landscape
313 315 228 221 91Total
3 314 1223 30
22
8
188 173
117 112
2 47
722 26
4
76 89 71 6721
98
9 5
2
64
2007 2008 2009 2010 2011 (YTD)( )
Business and Productivity Software Client / Desktop,System softwares and Tools Digital
Semiconductor Server / Infrastructure Software and Storage Others
Among all startups set up in past five years digital (which includes ecommerce mobileAmong all startups set up in past five years, digital (which includes ecommerce, mobile and internet) and business and productivity software segments account for 56% and 28% respectively
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Startups focusing on localized, India specificl tisolutions
Key Startup Focus Areas
Mass Visibility Solutions
Education startups are leveraging IT in developing
Startups focusing on mass visibility solutions are leveraging IT as a backbone to make services available to the customers in an effective and sustainable way
Education
SMB Niche
Education startups are leveraging IT in developing digital contents for students, provide distant learning, virtual classroom and other related services
Startups focusing on serving the large SMB market are leveraging cloud and web based technologies toSMB Niche
Applications
Mobile Applications Large number of startups are mushrooming on mobile delivery platform These startups are enabled by a
are leveraging cloud and web based technologies to widen their customer reach
E-commerce
for Reachdelivery platform. These startups are enabled by a robust IT infrastructure at the back end
E-commerce is on a rise and startups in this space are dependent on IT to reach out to the customers E commerceeffectively. And the backend infrastructure is required to be highly scalable and elastic
Source: Zinnov analysis
Product startups are being funded across ll j ti lall major verticals
1801200
VC Investments in India, 2005 – 2010 VC Investments by Industry, 2010
144
125
180
900
120015%
3%
10%
5%
14%
94 92
110* 120
600
0%
2%
51%
508
876
740
475540*
4460
300Mobile Retail HealthcareBFSI SW & IT EducationOthers
268
00
2005 2006 2007 2008 2009 2010
Deal Value Number of Deals
• Majority of the VC investments in 2010 have been in the SW & IT segment
• e-Commerce has emerged as the favorite themefollowed by internet businesses
*Data to filled in for other stagesSource: Startup landscape study by Zinnov, Indian venture capital association, Venture intelligence, TSJ Venture Intelligence India
• Mobile businesses, specially location based services were also well received by VCs
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NASSCOM Product Conclave November 20119
Industry is set to experience accelerated growth i f tin future
h l i f di i d bil h l i h l d• The evolution of disruptive Internet and mobile technologies such as cloud infrastructure and delivery, HTML5 will usher in a new wave of cloud-ready startups to cater to the global audience
Th il bilit f hi hl kill d i i t l t ifi ll i C t
Technology development
• The availability of highly-skilled engineering talent, specifically in Computer Science, Information Systems and Design will aid the growth of product startups
• The return of successful, skilled Indian immigrant talent from the US to India will help shape up the ecosystem and provide much needed leadership
Human Capital development
• The readiness of the Indian market will likely improve significantly due to improved Internet/Wireless connectivity (3G, LTE and Broadband)
• Improvement in the ease of doing business, basic physical infrastructure development such as power will contribute significantly to spur startup growth
Market development
development such as power will contribute significantly to spur startup growth
• The per capita income in India is likely to double in five years. This will help drive consumption, specially in e-Commerce
Th i fil f b i ill i i ifi tl d h l f l thEconomic conditions
• The economic profile of businesses will improve significantly and help fuel the consumption of business software by businesses
Source: Zinnov analysis
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1. Pawaa Software
Address 1133 Anand Embassy, 100 Ft Road, Indira Nagar, Bangalore, KA - 560037
Name of the CEO Prakash Baskaran
CEO contact details 9880923655
Product Pawaa
Product Description Pawaa Software operates in the space of Information Security. Our focus is to prevent enterprise data leaks at the hands of trusted users and to provide control over the information for its life time.
There are standard file formats available for various functions: zip for compression, jpg for images, xls for spreadsheets. Because of the technology limitations, so far there has not been a file format meant for security that addressed multiple business cases.
Pawaa Software has solved this issue with the invention of a file format named pawaaFILE. This new file format packs multiple technology innovations including the removal of a key manager. With this file format, we solve multiple security requirements uniformly:
• Security for the information stored on local computers, servers and cloud
• Security and control for file shared with others via email
• Security for information extracted from enterprise and cloud applications
• Security for information extracted from VM or VPN sessions
• Security for information shared via web browser and FTP
With the new file format, the owner/creator of the information, can control the files for the life time.Pawaa is set to revolutionize the industry with its unique “PLUSpawaa” solution which can be integrated with any application. With this solution anyone can protect the information extracted or transferred through enterprise or cloud applications. Pawaa has own several awards. We were selected as RSA’s top 10 most innovative companies earlier this year.
PLUSpawaa has now been integrated with several enterprise applications such as Business Objects, Cognos, Sharepoint, Liferay, SugarCRM, SAP among others. With this integration, owners of these enterprise applications can ensure that the data derived from these applications by authorized users are protected for life time and prevent any malicious or accidental data leaks.
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NASSCOM Product Conclave November 201111
2. QuickoLabs
Address #836, 27 Main, 3 Cross, BTM 2nd Stage, Bangalore, Karnataka - 560076
Name of the CEO Khadim Batti
CEO contact details 91-9611105212
Product SearchEnabler
Product Description QuickoLabs is a 1.2 year old start-up based out of Bangalore, providing SaaS based software platform for organic marketing.
The company is formed by Mr Khadim and his friend who have previously worked together for nine years in Huawei Telecom, built team and products in BI & DPI domain from scratch, catering to Huawei’s global customers.
QuickoLabs is redefining the SEO market by bringing enterprise class SEO solution to wider market using which businesses can achieve the objective of getting highly targeted traffic to their website, on a sustained basis with brand image association to online presence, increased competition and online paid marketing getting quickly out of reach, its inevitable for businesses to fall back for Organic Search Marketing as primary channel.
Traditionally SEO is managed as passive, out-sourced or one-time activity, and hardly utilized by start-ups, SMB’s as channel for marketing.
With SearchEnabler it has to change. By putting SEO on cloud with proprietary technology, we will be making SEO as pro-active, actionable and measurable, ensuring user’s focus on their business and providing regular analysis and recommendations, ensuring increase in online visibility.
SearchEnabler is an on-demand (SaaS) search engine optimization (SEO) platform, making organic search marketing easy, affordable and measurable for start-ups, small businesses and individuals seeking to improve online visibility.
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3. Persistent Systems Ltd.
Address " Pingala - Aryabhata ", 12A/12, off Karve Road, Erandwane, Pune, Maharashtra - 411004
Name of the CEO Dr Anand Deshpande
CEO contact details +91-9822050435
Product Persistent System Ltd
Product Description Persistent is a global company specializing in software product and technology innovation. We have utilized our fine-tuned product engineering processes to develop best-in-class solutions for customers in technology, telecommunication, life science, healthcare, banking, and consumer products sectors across North America, Europe, and Asia.
Persistent’s customers benefit from our deep knowledge of next-generation Cloud, BI &Analytics, Collaboration as well as Mobility-based computing platforms.
By leveraging our strategic technology partnerships, IP-based accelerators, and agile development processes companies can successfully navigate increasing time-to-market pressures and deliver the highest quality solutions, faster and more cost effectively.
Persistent’s global team is made up of the industry’s best and brightest software engineers and technology consultants whose expertise spans from niche technologies, to the latest technologies and built-to-scale enterprise applications.
Persistent customers continue to partner with us across companies, careers and technology changes, and why in our third decade, we are still innovating with the market leaders we once helped launch.
Our product eMee is an innovative game based employee engagement platform that will help overcome all these concerns as it provides visualization framework which can be effectively used to change the manner in which organizations engage with their employees.
eMee provides a platform to showcase the best in the employees, channelizes continuous engagement and feedback, makes performance reviews fun and productive, more over harnesses social networking and collaboration within the organization.
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NASSCOM Product Conclave November 201113
4. Imaginate
Address Plot 7, 1st Floor, Model colony, Hyderabad, Andhra Pradesh - 500038
Name of the CEO Hemanth Satyanrayana
CEO contact details +91-9966010133
Product Imaginate
Product Description Imaginate is developing innovative Augmented Reality(AR) based products for Retail, Advertising, Entertainment and Medical categories. We have expertise in AR and Virtual Reality(VR) and will shortly also provide custom services in Experiential Solutions and Virtual Demos. Founders of the company (alumni of IIT) have a combined experience of close to two decades in the technology and management consulting industry.
Imaginate is developed keeping in mind the day-to-day issues of a retai, advertising, entertainment and medical sector for exampe in retail, with the variety of clothes available, trying out apparel is a cumbersome and time intensive process.Even minute damages to expensive apparel are irreparable for the retailer and Buying apparel online isn’t as convincing as trying and buying apparel at brick and mortar stores
Thus, We have come up with a digital version of an instant trial room, where shoppers can instantaneously and effortlessly try out a variety of apparel by just standing infront of an LCD screen. We have filed for a patent for the product and the launch is due.
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5. Srijan Technologies Pvt Ltd
Address 303 Solitaire Plaza, MG Road, Gurgaon, Haryana - 122001
Name of the CEO Rahul Dewan
CEO contact details +91 98102 00322
Product DROWPS
Product Description Srijan is a technology consulting company specializing in enterprise open source CMS solutions, primarily using Drupal. It has several large portals developed such as www.mnn.com and www.openthemagazine.com.
It specializes in building web portals, specifically for the online media publishing vertical.Srijan hosted service for “businesses” to seek “anonymous” and “crisp” responses to questions.
Srijan is slowly getting into product development, and building SaaS products through part-time initiative.
This is developed keeping in mind the foowing aspects
• There is no simple/intuitive mechanism for “companies” to seek “anonymous feedback” for itself, or for it’s leadership
• There is no simple/intuitive mechanism for “individuals” to seek answers from within their “trusted networks”
• Public surveys do not reflect people’s “Attitudes
This is a new product, that uses the *intuitiveness of Tag-Clouds* to get crowd-source answers to public Surveys and HR Feedback.
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NASSCOM Product Conclave November 201115
6. Conwerge Web Services Pvt Ltd
Address AYODHYA" No: 63,1st Floor, Ravishankar Residency, Sanjeevini Nagar, Kodigehally, Bangalore-560092, Bangalore, Karnataka - 560092
Name of the CEO K 'Raj' Rajakumar
CEO contact details +91-9008177002
Product www.grupur.com
Product Description Conwerge Web Services is started by seasoned professionals with nearly three decades of combined experience with leading companies including Sybase, Informix, IBM and Swisscom.
The focus of the company is to create software products/platforms to bring people and different kinds of web content together for a specific purpose, which in turn helps in achieving a goal or completing a task.
Grupur.com provides a powerful combination web workspace and web workflow for groups to accomplish different group goals. Grupur.com implemented a unique transaction template mechanism which helps in defining web platform for doing ‘transactional grouping’. By transactional grouping we mean a way for a group of people come together to accomplish a common goal in a time bound manner. Group buying is just one example of ‘transactional grouping’ but we believe transactional grouping is much broader including buying, selling, raising money, working, blogging, creating petitions, group greetings etc.
Our website www.grupur.com is first of its kind general purpose ‘transactional grouping’ platform on the web.
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7. Semgel Technologies Pvt Ltd
Address 811, 10th cross, 10th main, 2nd stage, Indiranagar, Bangalore, Karnataka - 560038
Name of the CEO Harish Kumar M
CEO contact details +91-9448457109
Product Semgel
Product Description Semgel is a integrated web application to gather, organize and analyse richly structured data. Semgel is targetted at knowledge workers who need to gather, organize and analyze data found on websites. Spreadsheets have been the primary tool for downloading and analyzing data from websites. However this approach is typically suitable only for working with a single set of flat data(typically csv’s).
If the user needs to work with more richly structured data (multiple tables related to each other or xml files with multiple levels of nesting), the user will need to organize this data in a relational database and construct complex queries to get the answers he is looking for – something that often requires a software professional.
Semgel seeks to simplify this process and make this capability accessible to the average spreadsheet user. Using semantic web technologies, it enables the average spreadsheet user to assemble and analyse data through a intuitive, yet powerful interface.
8. Openweb Labs Private Limited
Address 16, Ratan Enclave, B.T. Kawade Road, Pune, Maharashtra - 411013
Name of the CEO Rajan Chandi
CEO contact details +91-8983741386
Product Getlive.me
Product Description We’ve been building game changing technologies.We launched Hirepug earlier- a tool to recruit top talent from social network.
Getlive.me is about live video and we will be able to live broadcast the whole NASSCOM product conclave over the web. In addition to the live broadcast - people will be able to group chat about the conference. We want to bring ‘Presence’ to the web - the way it is in real life. Also, no registration should be required to use our product. e.g. if Lady Gaga is broadcasting herself - anyone can join her in the chat session and see her live on video.
This is made keeping in view that celebrities in particular and people in general wants to broadcast themselves over live video and interact with their global audience. We make it simple and easy to do with the help of a webcam, normal internet connection and a few clicks!
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NASSCOM Product Conclave November 201117
9. Ozonetel Systems Pvt Ltd
Address # 6-3-1090/B/2,1st Floor, Mayank Towers,,Rajbhavan Road , Somajiguda, Hyderabad, Andhra Pradesh - 500084
Name of the CEO Murthy Chintalapati
CEO contact details +91-9880885108
Product ‘KooKoo’
Product Description Ozonetel’s flagship offering ‘Kookoo’ is India’s first Cloud Telephony Platform for entrepreneurs and businesses who want to develop their own apps which uses telephony channel. Kookoo enables existing web/e-commerce portals to use telephony as a channel to service 800million customers in an innovative manner.
Web programmers can easily develop applications using web technologies like PHP, JAVA without understanding the complexities of telephony and enable their customers to access services over telephone, with complete control on their data and its security.
KooKoo allows thousands of entrepreneurs to leverage the platform with no upfront investment and launch innovative services over phone by developing new applications in familiar web technologies.
Kookoo Can is useful in the following area sand situations:
• Telecom acts as key catalyst in lead generation, conversion and retention of customers at minimum cost. But in the absence of right business applications on core telecom services, SME/SMB is not able to take advantage of it
• Telco does not deliver business solutions. They provide core telecom resources as phone lines, Voice Minutes, Toll and Toll free numbers
• Lack of access to expert team to build IT & Communications using gear from Avaya/CISCO
• TCO is very high for branded solutions
• Absence of affordable business communication solutions that scale as business grows
• No solution that works across multiple locations and across multiple endpoints as mobile, landline, wireless phones etc.
• Not able to track, monitor and capitalize on calls received and measure how they are being processed by internal team
KooKoo - Its a PaaS which can be programmed to offer various Telephony solutions like IVR, PBX, Contact Center, Conferencing etc
CloudPBX - As part of its AaaS offering , Ozonetel offers CloudPBX for a SMB/SME on a Do-It-Yourself model
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10. NRich Software P Ltd
Address old 1 B, new 3 B, Vidyodaya 1st cross st, T nagar, Chennai, Tamil nadu - 600017
Name of the CEO Badri Narayanan V S
CEO contact details +91-9962229988
Product DiaSof
Product Description Focussed on the health-care vertical, DiaSof offers a range of SaaS solutions for chronic therapies. The initial therapy is Diabetes where DiaSof transforms the interaction between a physician and his patient from a transaction to a relationship built on trust.
Compliance of patients in terms of taking their tests and meeting their doctors in time is very low. This creates a gap in the treatment cycle which is a fertile ground for complications relating to the eye (diabetic retinopathy), kidneys (diabetic nephropathy), nervous system (diabetic neuropathy) and the heart. DiaSof helps the patients to improve the compliance and therefore keeps them “Healthier, Anywhere, Anytime.
DiaSof is built on the LAMP environment and virtually mirrors the practice at a doctor’s end while offering a slew of benefits to the doctors and his/her patients. The latest version of DiaSof has the provision for the doctor to personalize and customize.
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