[PreMoney MENA 2015] Kalaari Capital >> Vani Kola, "THE GLOBAL VC: India"

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The Rise of Indian Startups - Vani Kola @VaniKola

Transcript of [PreMoney MENA 2015] Kalaari Capital >> Vani Kola, "THE GLOBAL VC: India"

Page 1: [PreMoney MENA 2015] Kalaari Capital >> Vani Kola, "THE GLOBAL VC: India"

The Rise ofIndian Startups

- Vani Kola

@VaniKola

Page 2: [PreMoney MENA 2015] Kalaari Capital >> Vani Kola, "THE GLOBAL VC: India"

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

Page 3: [PreMoney MENA 2015] Kalaari Capital >> Vani Kola, "THE GLOBAL VC: India"

“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

$

Page 4: [PreMoney MENA 2015] Kalaari Capital >> Vani Kola, "THE GLOBAL VC: India"

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

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Ghar Wapsi: Senior talent flow to Indian

startups, fuelling growth

Vani Kola@VaniKola

Recent grads swarming startups to cash in on the boom

Page 5: [PreMoney MENA 2015] Kalaari Capital >> Vani Kola, "THE GLOBAL VC: India"

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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

Vani Kola@VaniKola

The value created by Indian unicorns. Generated $2-4bn in

wealth for employees

39bn$

Entrepreneurs are gaining more social acceptance

3650Startups in 2015

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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$

Vani Kola@VaniKola

80K+Employment opportunities

generated

25Active Premium

VC/PE firms

+

+

90%

y

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Global investors are betting big on India

Vani Kola@VaniKola

“ ‘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+$

Page 8: [PreMoney MENA 2015] Kalaari Capital >> Vani Kola, "THE GLOBAL VC: India"

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

Vani Kola@VaniKola

1bn$ 2bn

$ 4bn$ 5bn

$bn

$bn

$

$

15.24.6bn$ 6.5

Page 9: [PreMoney MENA 2015] Kalaari Capital >> Vani Kola, "THE GLOBAL VC: India"

More multi-billion dollar companies to be created09

Vani Kola@VaniKola

Page 10: [PreMoney MENA 2015] Kalaari Capital >> Vani Kola, "THE GLOBAL VC: India"

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

Page 11: [PreMoney MENA 2015] Kalaari Capital >> Vani Kola, "THE GLOBAL VC: India"

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.)

Vani Kola@VaniKola

India’s largest E-commerce Marketplace

Sellers200K+

Annual GMV Run Rate

5bn$Monthly Orders

8mn$Monthly Unique

Visitors

130mn+

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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

Page 13: [PreMoney MENA 2015] Kalaari Capital >> Vani Kola, "THE GLOBAL VC: India"

Being on the board of an Indian Startup?13

Vani Kola@VaniKola

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

Page 14: [PreMoney MENA 2015] Kalaari Capital >> Vani Kola, "THE GLOBAL VC: India"

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

Vani Kola@VaniKola

20mn college grads entering

the workforce each year

Page 15: [PreMoney MENA 2015] Kalaari Capital >> Vani Kola, "THE GLOBAL VC: India"

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

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Vani Kola@VaniKola