Vani Kola, Managing Director, Kalaari Capital

1. The Rise of
Indian Startups
- Vani Kola
@VaniKola

2. 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
TRACK
RECORD
Vani Kola
@VaniKola

3. “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 GDP
growth
Vani Kola
@VaniKola
3rd
largest by 2050
India’s economy is
poised to become
160mn
Digital
spend
24bn
Smartphone
users
$

4. 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
Vani Kola
@VaniKola
Recent grads
swarming startups to
cash in on the boom

5. 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
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

6. 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 2015
Average Series A
deal size
2mn
$
Vani Kola
@VaniKola
80K+
Employment opportunities
generated
25Active Premium
VC/PE firms
+
+
90%
y

7. 07
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
TigerGlobalSoftbank 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
+$

8. 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

9. More multi-billion dollar companies to be created
09
Vani Kola
@VaniKola

10. The trends in Indian Startup Ecosystem
10
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
Vani Kola
@VaniKola
With $7bn+, Consumer Internet is
the most funded sector to date

11. Learnings from funding unicorns - Snapdeal
11
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
Sellers
200K+
Annual GMV
Run Rate
5bn
$
Monthly Orders
8mn
$
Monthly Unique
Visitors
130mn+

12. Challenges of creating companies in India
12
Vani Kola
@VaniKola
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

13. 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

14. Why you should invest in India?
14
Large market Middle class population Strong entrepreneurial ecosystem
Favourable demographics Generate super returns
500Bn
discretionary spend
270mn
20x–200x
India median age 25yrs
for series A investors
11,500
By 2020, there would be
startups; employing over
250K people
Vani Kola
@VaniKola
20mn college grads entering
the workforce each year

15. Let’s talk!
Inviting you to collaborate with Kalaari and
realise with us the ‘Make in India’ dream
15
Vani Kola
@VaniKola