[Startup Nations Summit 2014] Competition - Indonesia

We help your customer grow with you…

8villages is the mobile and internet gateway for underserved in developing countries to exchange with their peers and get the best financial reward for their work.

The community has the knowledge,

8villages delivers it.

•  People making less than 3,260 USD per year

•  4 Bn people

World Economic Pyramid

Micro business owners Small Farmers

Key segments are underserved

•  Up to 20,000 USD per year

•  2 Bn people

•  >20,000 USD per year

•  0.5 people

Key segments of the boKom of the pyramid are currently underserved…

Source: World Resources Institute"The community has the knowledge,

8villages delivers it.

Middle Men x3

Limited need adds complexity a

… this is partly due to lack of informaOon within value chain. Example: Farming.

The community has the knowledge, 8villages delivers it.

Financial InsOtuOons

How do we opOmize selling? (price, quanBty, Bmeliness, costs)

How do we increase yield and profit? (pests, pricing, weather etc.)

How do we source beKer? (pricing, quality, transportaBon costs etc.)

How do we limit the costs of financing farming? (Bme, weather, sophisBcaBon risks, size of loan)

Input Producers

Product Buyers (off takers)

Middle Men x3

Limited need adds complexity a

Small Farmers

Lack of informaOon is caused both due to complexity of supply and lack of sophisOcaOon/value in demand.


Complicated businesses Low margin and low sophisOcaOon customers

Lack of informaOon

flow •  Selling complicated products or

sourcing from fragmented markets •  High selling/buying and

administraBon costs •  High levels of compeBBon

•  Low sophisBcaBon •  Limited understanding of how to

use the product / interact with off takers

•  Limited ability to pay significant amounts of money in one Bme

•  Lack of trust of big companies and “educated” people

Banks / insurance

Seed sellers

Buyers of product Micro business

owners Farmers

Other input sellers


8villages technical pla]orm looks to bridge the gap between supply and demand.

Simplified businesses Empowered customer

Reduce complexity

and increase

informaOon flow

•  Improve brand percepBon, product delivery and customer loyalty

•  Empower exisBng workforce with limited addiBonal effort

•  Engage customers in a rich and two sided way derived insights

•  Provide real value on how to improve customer livelihoods

•  Break through shyness and allow for two sided communicaBon

•  Follow up and support the customer through his business cycle

Banks / insurance

Seed sellers

Buyers of product Micro business

owners Farmers

Other input sellers



What does it look like for the farmer in daily basis.

•  QuesBon and answer flow •  Daily Bps and tricks •  Sharing of knowledge with expert

and local groups


What does it look like for the expert.

•  Direct integraBon among farmers and experts

•  QuesBon and answer flow •  Sharing of knowledge

And we are looking to go beyond Indonesia.


Myanmar Pakistan Philippines / Vietnam

Entry plan

•  Partnering with the largest Agri distributor (holds 40% of market) as a local partner

–  8villages will hold 40% of the NewCo and will play an acBve part in management

•  Partnering with PITCO a company owned by an INSEAD alumni

•  Currently searching for a partner in those countries

Go-‐To Market

•  Partnering with Ooredoo one of the two foreign license owners for the new Telco

–  Focusing on 3G with an Android applicaBon

•  PITCO has already engaged Telenor, a market leader in the country

•  Early discussions with SMART telecom

Opportunity

•  40 million people living off farming

•  First Bme phone users

•  GSMA grand to the tune of 250 K BriBsh Pounds to help execute

•  Over 8 Million farmers with many more directly or indirectly make their livelihood from farming (up to 64% of populaBon)

•  Two of the largest markets in South East Asia with lible focus on Agricultural


What does it look like in ApplicaOon.

•  Direct integraBon among farmers and experts

•  QuesBon and answer flow •  Daily Bps & tricks •  Sharing of knowledge with groups •  MulBmedia

Our product is already on the ground and having impact.


Profile •  Married with two children

–  One in university and the other in high school

•  Bank customer

•  Sewing bags since 2013

–  Bag price of $3 to $5 –  Revenues of $130 to $450

•  Married

•  Bachelors degree

•  Monthly income outside of extension worker work is $50 to $100 (plus about $200 from extension work)

•  Married but does not have children yet

•  Diploma from a mariBme academy in Cirebon

•  Farmer makes the equivalent of ~300 per month if harvest is successful

Impact of plahorm

•  Easier to access than internet

•  Uses the quizzes to improve knowledge

•  Easier to interact with bank and not feel shy – increase loan size 3x

•  Complement agricultural informaBon from plahorm

•  Able to save Bme by reaching and discussing with customers

•  Ability to interact with experts when data lacking

•  Improving his knowledge of organic farming

•  Fill gaps in knowledge

•  Increased yield from 6 to 9 ton through the right intervenBon regarding pesBcides

Triono Hand Crae

Nia Extension Worker

Asep Rice Farmer

We have two disOnct business models.


Go-‐to market

Corporate SolluOon Pla]orm

ConsultaBve sales to key customers producing customer specific plahorms white labeled •  Agri input players •  Off takers •  Banks

•  Licensing fees for building white label plahorms

•  Developing insights for customers •  Being a medium for addiBonal

products (crop insurance, financing, mobile money)

Business model

Telco Managed Pla]orm

Partnering with Telcos to deliver service directly to farmers •  Farmers pay very lible •  Farmers do not pay at all

•  Freemium/value added services paid by subscribers

•  Targeted adverBsing to the farmers •  Insight generaBon/market making •  Being a medium for addiBonal

products (crop insurance, financing, mobile money)

With a modular pricing schemes that can make the most out of the pla]orm.


Network insights / more products ▪  Assessment of farmer/product performance

(big data) ▪  Market making ▪  Crop insurance, mobile money, financing

Content to be delivered

▪  Agriculture related Bps and tricks ▪  Financial management Bps and tricks ▪  Targeted content to specific quesBons ▪  Specific markeBng and educaBonal material ▪  Health Ops and tricks

Key product features ▪  Individual targeted SMS ▪  Q&A capabiliBes ▪  Group creaBon and group chat ▪  Quizzes and surveys ▪  Loyalty program ▪  Mobile transacOons

Delivery method ▪  SMS based ▪  Web based monitoring and interacBons ▪  Android app

Pricing model

We are able to build a white label product for various customers

Future product

Financials

We are burning less than 25 K USD per month between our

Indonesia ad Myanmar operaOons

We will achieve >100 K of revenues this year

We have raised 150 K from IMJ and about to

close another 150 K from a strategic investor

We want to raise 0.5 to 1.5 USD Mn from an

investor who can provide addiBonal tech help and

country access

We have a well rounded team.


•  Sanny Gaddafi is an experienced developer and serial entrepreneur specialized in acBve niche social networks. In 2004, he developed the first Indonesian social networking site called FUPEI (Friends UniBng Program Especially Indonesian).

•  He is very acBve in the Indonesian start-‐up community as one of the #StartupLokal's IniBator and one of the Founder InsBtute‘s directors.

•  Sanny holds an undergraduate diploma in InformaBcs and StaBsBcs from the UniversBas Bina Nusantara, Indonesia and a postgraduate diploma in Magister Management of Finance and Investment.

Sanny Gaddafi Cofounder -‐ CTO

Anita HesO General Manager Indonesia

•  Anita has years of experience managing agricultural value chains in Indonesia. Before joining 8villages, Anita oversaw the Indonesian horBcultural strategy for the AMARTA project funded by USAID. Her duBes included managing the value chain, from the producBon to post-‐harvest management, processing and markeBng (domesBc and export).

•  She developed and implemented comprehensive training plans for producers, supporBng farmer’s group/associaBons and regional businesses associaBons. Anita was previously a NaBonal Technical Advisor for Market Restructuring for the Food Agricultural OrganizaBon of The United NaBons

Ziv Ragowsky!Chief Executive Officer"

•  Ziv Ragowsky has been a McKinsey consultant for a large part of his career, focusing on banking and telecommunications projects across multiple geographies and worked on establishing a digital platform for a large Telco in Asia.

•  He has an MBA from INSEAD and a BBA from the University of Michigan. •  In addition to consulting, Ziv was a finalist in the Startup at Singapore competition and is involved in a

few interesting ventures. "

Thank you…


www.8villages.com

Ziv Ragowsky, CEO: [email protected] Sanny Gaddafi, CTO: [email protected]

Anita HesB, GM, [email protected]

[Startup Nations Summit 2014] Competition - Indonesia

Software

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