RUMA: Your micro-business partnersJune 2011

Our Partners

Executive Summary

Ruma is an Indonesian for-profit Social Enterprise incubated by Grameen Foundation with the mission of empowering the poor leveraging mobile technology

Ruma aspires to grow entrepreneurs from the bottom of pyramid by providing them with a business-in-a-box solution

“RumahIsiUlang” - selling prepaid cellular minutes via text messages - is our first business solution offered to the entrepreneurs

For the subsequent business solution, Ruma is piloting “Local jobs” - an online database focusing on blue-collar workers in micro network matching jobs with customers based on their skills and locations

Ruma is negotiating a deal with a Telecom Operator to pre-install Ruma applications in one million phones by Q4 2011

4

Our vision is to enable everyone to become an entrepreneur by creating micro-businesses “in a box”

Idea

“What business should I start?”

Skills

“How do I start and run the business?”

Capital

“Where do I get the money to start and

operate the business?”

…“Business-in-a-box” as solutionKey success factors in starting a business….Key success factors in starting a business….

Technology Platform

Proven Business

Model

Established Brand

Working Capital

Training & Support

5

We aim to create a one-stop-shop micro businesses leveraging mobile phones for the bottom of the pyramid

Empower rural entrepreneurs . .

Using simple mobile technology…

To provide products and services to their communities

Agriculture/trade information

Market Place

Jual Pulsa

Provide health services

Create local job market

• Idea

• Train

• Finance

• Support

• SMS platform

• SMART and simple mobile applications

6

Selling prepaid cellular minutes is the best entry to serving the lower income segment in Indonesia

60% of the population in Indonesia live at US$2.00 a day; yet, mobile phone penetration is extremely high

~150 million cell phone owners, with over 90% buying prepaid minutes

Average user buys $4 worth of minutes per month resulting into total market size of ~US$6-7Billion p.a.

Rural and semi-rural areas are underserved, hence, cost of communication is highest among the rural poor due to transportation cost

average bus ticket is equivalent of Rp. 2.000 – Rp. 5.000 round trip, while the average consumers purchase Rp. 5.000 worth of minutes per transaction

7

14

15

16

17

18

Q3 2007 Q4 2007 Q1 2008 Q2 2008 Q3 2008F

Quarterly Telecom Revenue in Indonesia (IDR Bn)

Source: (1)http://www.tradingeconomics.com/indonesia/mobile-cellular-prepaid-tariff-us-dollar-per-month-wb-data.html(2)Companies annual reports

“RumahIsiUlang” is a business in a box enabling low income households to sell minutes electronically

ENTREPRENEURS

Rp. 4.800

Rp. 5.000

Selling Price

Rp. 6.000

~3-4 % Margin

TELECOM OPERATORS

Sell “RumahIsiUlang” business in a boxSell “RumahIsiUlang” business in a box

“RumahIsiUlang” aggregates operator minutes allowing entrepreneurs to sell multiple brands with limited capital“RumahIsiUlang” aggregates operator minutes allowing entrepreneurs to sell multiple brands with limited capital

• Simple business model• Well established brands • Continuous training & support• Working capital management

Phone + SIM

1 2

8

Flyer/Banner

+

END CUSTOMERS

~20% Margin ~20% Margin

Low margin, Technical Problem, VPO Skill, Field Officer are the challenges for RUMA

Low Margin Avg. 3% for all denom

Technical Problem Operator Problem (VPO or Customer) Server Problem Electricity Problem Internet Problem

VPO Skill Low Skill of business Leak of knowledge of Airtime Business

Field Officer Turn Offer Competitor

Solusi

So far, RumahIsiUlang has created a network of 7,600 entrepreneurs selling minutes to 680,000+ customers

Achievements to date:

• $6,700 sales of minutes each day

• 70% below $2.5 per day

• 80% Women

Awards:

•1st prize in Harvard Social Enterprise

conference

•2nd prize at Berkeley, Columbia, and

LSE Global Social Venture

Competitions

11

A Success story: Ibu Marni’s journey to prosperity

12

Name: Ibu Marni

Location: Kunciran, Tangerang

Primary Business: Housewife

Her story:

• Ibu Marni is a 42 year old housewife with 2 children, 18 and 15 years old. She used to have a small but unreliable home business of pulsa vouchers and handsets

• After joining Ruma 9 months ago she stopped her voucher and handset sales and focused exclusively on selling electronic pulsa with Ruma. She learned quickly from Ruma’s training, and she performed so well that PT RUMA turned her into a “Pulsa HUB” who trains other micro-entrepreneurs. She now has 20 micro-entrepreneurs under her reselling pulsa. Her network sells around $400 worth of airtime per month.

• Her success gave her enough working capital to purchase Nestle products in bulk and now she has become the distributor to 15 Warungs in the neighborhood

• She is one of the pioneer entrepreneurs of Kerja Local and has successfully convinced 10 people around her neighborhood to subscribe to the job information service. She is very happy because 2 weeks ago one of her subscribers successfully received a job that was received from Kerja Local SMS.

MICRO-ENTREPRENEUR PROFILE: IBU YANTI, SEPATAN, TANGERANG

13

Name:IbuYanti

Location: DesaPondokKelor, Kmp. Gondang (Rural)

Primary Business: Small convenience stand (Warung)

Her story:

• IbuYanti and her husband, Pak Tisman, own and operates Warung

• Her Warung location is quite remote, the team needs to travel by foot for 15 minutes to reach her stand

• IbuYanti has a five years old daughter

• Ever since joining Ruma, she has increase hear income by $1 per day

Week

Estimated profit after joining Ruma(IDR/ week)

Ibu Harun

Kantor Cabang Serang

Roleplay

Dengan calon investor

Perakitan rak server