The Rise ofIndian Startups
- Vani Kola
@VaniKola
Kalaari Capital
Early stage India-focused VC Fund
650mn$
Active portfolio companies
50
02
Strong track record in operations and investing
TEAM
+
Snapdeal, Flipkart + Myntra, Via, Urban Ladder, Simplilearn, Zivame, Dream 11, Magzter
TRACKRECORD
Vani Kola@VaniKola
“The world will look to India for the next big idea.”
India is not simply emerging. It has emerged.
- Barack Obama
- Narendra Modi
03
“Mobile subscriptions
900mn
1.3bn
Internet users
350mn
7.5%
Population GDPgrowth
Vani Kola@VaniKola
3rdlargest by 2050
India’s economy is poised to become
160mn
Digital spend
24bn
Smartphone users
$
A young and fast-growing startup ecosystem
Technology gold rush: Partners from major consulting firms lured to join startups in droves
The emergence of digital economy, startups and tech companies
04
Ghar Wapsi: Senior talent flow to Indian
startups, fuelling growth
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Recent grads swarming startups to cash in on the boom
05
What has increased the risk appetite of the Indian Youth?
Early stage VC/PE funding in 2015
2bn$
Gestation period to test an idea
18months
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The value created by Indian unicorns. Generated $2-4bn in
wealth for employees
39bn$
Entrepreneurs are gaining more social acceptance
3650Startups in 2015
06
India ranks third in the global startup ecosystem
59Starups in B2C
37% B2B, 4% B2B2C
%
Startups in top 6 cities
300Active Angels
+
26-3553% founders in this age group
450Startups received
funds in 2015Average Series A
deal size
2mn$
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80K+Employment opportunities
generated
25Active Premium
VC/PE firms
+
+
90%
y
07
Global investors are betting big on India
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“ ‘Phenomenal time’ to be an entrepreneur in India.
– Nikesh Arora, Softbank
Steadview
Falcon Edge Valiant GIC Temasek Foxconn
TigerGlobal Softbank DST
Warburg Pincus Google Capital Can’t connect the world
without connecting India.- Mark Zuckerberg
“Active large Global Investors behind Indian startups
Total money invested 8bn+$
Billion dollar companies have emerged
Hot Sectors
FinTech
Healthcare
Leading the emergence of shared economy
1bn$
Classifieds
Education
Hyperlocal Services
Enterprise Value
Going global with presence in over 25 countries
Restaurant Discovery
First startup to go global
AdTech
Revolutionizing payments
E-commerce
Changing the way India commutes
Cab Booking
Example of a successful marketplace
E-commerce
Largest pool of data scientists
Data Analytics
Delightful customer experience
E-commerce
08
Internet Services
AdTech
E-commerce
Mobile Tech
Data Analytics
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1bn$ 2bn
$ 4bn$ 5bn
$bn
$bn
$
$
15.24.6bn$ 6.5
More multi-billion dollar companies to be created09
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The trends in Indian Startup Ecosystem10
Bangalore (26%) leads in number of deals done, followed by NCR (24%) and Mumbai (20%)
65-70% of online orders are CoD
12+ startups have been founded by former investors in the last year
14% founders are ex-employees of other startups
96% startups with at least one tech founder
11% female founders; 18% female employees
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With $7bn+, Consumer Internet is the most funded sector to date
Learnings from funding unicorns - Snapdeal11
Kalaari has been deeply engaged with Snapdeal starting with Series A
Founder and Co-founder strong leaders with complementary skills
Not selling out early (Various buyout offers)
Rapid reflex. Pivoting strategy to adapt
Deep focus on technology for scalability and differentiation(Snaplite – A lite version of the app for 2G networks)
Founders ability to attract investors at critical junctures in venture lifecycle
($1.45b raised till date)
Investing in organisation building and attracting high quality talent(People from Silicon Valley, top FMCG & Consulting firms in Sr. Mgmt.)
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India’s largest E-commerce Marketplace
Sellers200K+
Annual GMV Run Rate
5bn$Monthly Orders
8mn$Monthly Unique
Visitors
130mn+
Challenges of creating companies in India12
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Ease of Doing Business Access to Talent Market Dynamics
India ranks 130th globally
Lack of clarity on regulations including new age business models such as E-commerce
Complex indirect tax regime with state-wise differences
Tedious and time taking procedures for business related licenses
Over reliance on global talent pool for cutting edge tech and product understanding
Tech talent availability limited to 2-3 hubs
Young founders turning into long term CEOs is not a given
Global labour cost arbitrage dwindling gradually
Funding gap after initial capital raises
Large capital predominantly coming from foreign investors only
Poor liquidity in the market for M&A and IPO
Prolonged holding periods for investors
Local debt options highly expensive
Being on the board of an Indian Startup?13
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Lack of clarity around personal liability risk; D&O not a guarantee
Cultural constrains -ability to challenge within board rooms
Board remunerations are not attractive. ESOPs cannot be granted to board members
Compliance done mostly on paper
Why you should invest in India?14
Large market Middle class population Strong entrepreneurial ecosystem
Favourable demographics Generate super returns
500Bndiscretionary spend
270mn
20x–200xIndia median age 25yrs
for series A investors
11,500By 2020, there would be
startups; employing over 250K people
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20mn college grads entering
the workforce each year
Let’s talk!Inviting you to collaborate with Kalaari and realise with us the ‘Make in India’ dream
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