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

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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

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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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