Indian Startups

The Rise of
Indian Startups
- Vani Kola
@VaniKola
02
Kalaari Capital
$
650
mn
Early stage Indiafocused VC Fund
TEAM
50+
Active portfolio
companies
Strong track record in
operations and investing
TRACK
RECORD
Snapdeal, Flipkart + Myntra, Via,
Urban Ladder, Simplilearn,
Zivame, Dream 11, Magzter
Vani Kola
@VaniKola
03
“The world will look to India for the next big idea.”
- Narendra Modi
“
India is not simply emerging. It has emerged.
- Barack Obama
Internet
users
Mobile
subscriptions
900
350
mn
Smartphone
users
160
mn
India’s economy is
poised to become
3
mn
rd
largest by 2050
1.3
bn
Population
7.5
%
GDP
growth
24
$
bn
Digital
spend
Vani Kola
@VaniKola
A young and fast-growing startup ecosystem
04
The emergence of digital economy, startups and tech companies
Ghar Wapsi: Senior
talent flow to Indian
startups, fuelling growth
Technology gold rush: Partners
from major consulting firms
lured to join startups in droves
Recent grads
swarming startups to
cash in on the boom
Vani Kola
@VaniKola
What has increased the risk appetite of the Indian Youth?
$
2bn
$
39bn
18
months
05
3650
Startups in 2015
Gestation period to test an idea
Early stage VC/PE funding in 2015
The value created by Indian
unicorns. Generated $2-4bn in
wealth for employees
Entrepreneurs are gaining
more social acceptance
Vani Kola
@VaniKola
India ranks third in the global startup ecosystem
59
%
Starups in B2C
37% B2B, 4% B2B2C
450+
Startups received
funds in 2015
90
%
Startups in top 6 cities
2mn
$
Average Series A
deal size
25+
300+
26-35y
80K
Active Premium
VC/PE firms
53% founders in
this age group
06
Active Angels
+
Employment opportunities
generated
Vani Kola
@VaniKola
Global investors are betting big on India
Active large Global Investors behind Indian startups
Softbank DST TigerGlobal Steadview
Warburg Pincus Google Capital
Falcon Edge Valiant GIC Temasek Foxconn
Total money invested
8bn
$
+
“
‘Phenomenal time’ to be
an entrepreneur in India.
– Nikesh Arora, Softbank
“
07
Can’t connect the world
without connecting India.
- Mark Zuckerberg
Vani Kola
@VaniKola
08
Billion dollar companies have emerged
1
$
bn
Classifieds
Leading the emergence
of shared economy
1
$
bn
Restaurant
Discovery
Going global with presence in
over 25 countries
2
$
4
$
bn
bn
4.6
$
5
$
bn
6.5
$
bn
AdTech
E-commerce
Cab Booking
E-commerce
First startup to go global
Revolutionizing payments
Changing the way India
commutes
Example of a successful
marketplace
bn
Data Analytics
Largest pool of data
scientists
15.2
$
bn
E-commerce
Delightful customer
experience
Enterprise Value
FinTech
Hot Sectors
Education
Internet Services
E-commerce
Data Analytics
$
Healthcare
Hyperlocal Services
AdTech
Mobile Tech
Vani Kola
@VaniKola
More multi-billion dollar companies to be created
09
Vani Kola
@VaniKola
The trends in Indian Startup Ecosystem
10
Bangalore (26%) leads in number of deals done,
followed by NCR (24%) and Mumbai (20%)
11% female founders;
18% female employees
96% startups with at
least one tech founder
14% founders are exemployees of other startups
With $7bn+, Consumer Internet is
the most funded sector to date
65-70% of online orders are CoD
12+ startups have been founded by
former investors in the last year
Vani Kola
@VaniKola
11
Learnings from funding unicorns - Snapdeal
Kalaari has been deeply engaged with Snapdeal starting with Series A
200K+
India’s largest E-commerce
Marketplace
Sellers
Investing in organisation building and attracting high quality talent
(People from Silicon Valley, top FMCG & Consulting firms in Sr. Mgmt.)
Founder and Co-founder strong
leaders with complementary skills
Founders ability to attract investors at
critical junctures in venture lifecycle
($1.45b raised till date)
$
5bn
Annual GMV
Run Rate
$
8
mn
Monthly Orders
130
mn+
Monthly Unique
Visitors
Deep focus on technology for scalability and differentiation
(Snaplite – A lite version of the app for 2G networks)
Not selling out early (Various buyout offers)
Rapid reflex. Pivoting strategy to adapt
Vani Kola
@VaniKola
12
Challenges of creating companies in India
Ease of Doing Business
India ranks 130th globally
Lack of clarity on regulations
including new age business
models such as E-commerce
Access to Talent
Over reliance on global talent
pool for cutting edge tech
and product understanding
Market Dynamics
Funding gap after initial
capital raises
Tech talent availability limited
to 2-3 hubs
Large capital predominantly
coming from foreign
investors only
Complex indirect tax regime
with state-wise differences
Young founders turning into
long term CEOs is not a given
Poor liquidity in the market
for M&A and IPO
Tedious and time taking
procedures for business
related licenses
Global labour cost arbitrage
dwindling gradually
Prolonged holding periods
for investors
Local debt options highly
expensive
Vani Kola
@VaniKola
Being on the board of an Indian Startup?
Compliance done
mostly on paper
Board remunerations are not
attractive. ESOPs cannot be
granted to board members
13
Lack of clarity around
personal liability risk;
D&O not a guarantee
Cultural constrains ability to challenge
within board rooms
Vani Kola
@VaniKola
Why you should invest in India?
Large market
500Bn
discretionary spend
Middle class population
270mn
Favourable demographics
India median age 25yrs
20mn college grads entering
the workforce each year
14
Strong entrepreneurial ecosystem
By 2020, there would be
11,500
startups; employing over
250K people
Generate super returns
20x–200x
for series A investors
Vani Kola
@VaniKola
15
Inviting you to collaborate with Kalaari and
realise with us the ‘Make in India’ dream
Let’s talk!
Vani Kola
@VaniKola