Transcript of "Investor Presentation - Netzvacation.com online Vacation Rental marketplace"
Netz Capital is a Venture Capital Fund & advisory based in
Mumbai led by a group of successful entrepreneurs investing in
start ups and early stage companies.
is a online Vacation rental marketplace serving $ 10 billion
online vacation rental stay Industry in India
International Tourists stats
• Over 8 million international tourists come to India
• Number to touch 10 million by 2010
• 95% of the travelers look for cost effective stay options at vacation
• International tourists are used to booking their stay online. They
have to depend on local travel agents to find a place to stay.
Domestic Tourists stats
• Over 350 million domestic tourists (Source : Tourism Dept.)
• 99% of the travelers look for cost effective stay options at vacation
• Major tourists fight for reserving State Tourism owned properties.
E.g. MTDC, GTDC, HTDC, KTDC, TTDC
• Rest are unsure about their booking and find anything that is
available at random
The need and market size
• Market size of over $10 billion USD growing at 15%
• There is no centralized interface or inventory maintenance of vacation
• State tourism corporations do not have any online booking
system/interface/inventory for people to get assured booking.
• Even after mobile internet, data cards and cost effective computer
infrastructure has reached most parts of India, booking facility given to
tourists is very conventional and not promising.
• Inspired from Homeaway.com
• Homeaway.com offers vacation rental properties in USA by giving them
centralized booking infrastructure and quality maintenance process.
• The system http://www.netzvacation.com has been developed after 1
year ground research and programming.
• Netzvacation.com provides a platform for property agents/home
owners/state tourism organizations/travel agents/booking partners to
effectively manage India $5 billion market for online vacation booking.
Setup for successful implementation
Domestic Tourists Travel
Tourism Bed and Home
Properties Breakfast Owners
• Homeaway.com charges monthly/yearly fees from home owners, but the
same model might not work in India
• Hence, 15-20% commission per booking
• Quality Maintenance agency for every property can be paid for quarterly
review/training of the property.
• $400/$500 kiosks with internet data card
– For State Tourism agency, we can invest by our own to provide them
– For rest of the players, we can provide with easy finance option
• Tie up with all State tourism agencies
• Approx resorts and costs required
MTDC GTDC KTDC Others Total
Approx Resorts 14 8 15 105 142
Approx Rooms/resort 8 8 8 8
Total rooms per resort 112 64 120 840 1136
Approx Kiosks Required 14 8 15 105 142
Cost per Kiosk $500 $500 $500 $500
Cost Per Resort $7,000 $4,000 $7,500 $52,500 $71,000
First Year Target & Financial Projections
• Launch Strategy is to only target Rooms Availability 1136
Approx Rent per day $35
state tourism companies and
Total Rent Per Day $39,760
target 10% of their revenue
Total Rent Per Year $14,512,400
• The site will however be open
to vacation rental properties as
Yearly Occupancy 80% $11,609,920
Target 10% of Booking $1,160,992
FY01 FY02 FY03
Properties Listed 1500 18,000 145,000
Turnover $1,200,900 $15,400,000 $135,000,000
Revenue $240,000 $3,500,000 $31,000,000
• Atul Khekade is the partner of Netz capital, a venture capital fund and advisory focused on nurturing start-ups
and emerging companies to take them to billion dollar league. Atul has successfully led several start-up
companies and generated revenues in excess of $1.5 million. Netz capital portfolio consists of 8 companies with
combined net worth of over $50 million and annual revenues in excess of $5 million.
Atul has authored a book on Graphical User Interfaces and was a visiting professor on computer programming.
Previously, Atul was a consultant with i-flex Solutions(now Oracle) and played key role in development of
Citigroup's global transaction system designed to handle trillions of dollars of transaction every month. Atul was
also a consultant for UK based Smartstream technologies for Transaction Processing System used by banks such as
Wells Fargo and Bank of America. Atul co-founded a executive education company in 2005 for which he was
nominated in Businessweek as one of the Top Entrepreneurs in Asia under 25. Atul is currently the chairman of
Airnetz Charter Inc, a global private jet charter marketplace ,GDS and end to end business flight service. Airnetz
serves over 25,000 airfields globally with over 1200 aircrafts to it's global network.
Atul is a Computer Engineer from Mumbai University and has travelled across the world during his professional
roles. Atul has been featured on various publications such as India Today, Businessweek, Rediff.com, UTV and
Fortune Innovation Forum. Atul likes working in the background building Business Model, strategy, direction,
public relations and sales.
• Ritesh Kakkad is the partner of Netz Capital and has prior experience of growing the companies from scratch to
multi million dollar revenues. Ritesh is the CEO of Indsoft Systems Pvt. Ltd., a premier web hosting and internet
infrastructure solutions provider to Fortune 500 companies. Ritesh was featured as one of bring young
entrepreneurs in Asia by BBC.
• Nikhil Khekade has over 4 years of experience in building technologies for practical applications. He is
responsible for Airnetz Global distribution system and online marketplace and a unique commercial flight pool
system that lets corporate travelers fly on demand at business class prices. Nikhil is a visiting faculty for
software technologies at Sardar Patel College of Engineering. Nikhil was previously working with Cognizant
technologies Ltd for their CRM, Rsearch project and SAO for IBM.Nikhil has expertise in web services, semantic
web and system automation. He is a graduate in Information technology from Mumbai University.
Fund requirement & Utilization
• $3 million in Seed Funding – to reach FY01 targets
– Utilized for hiring Key People
• CTO, CEO
– State Tourism Board properties Implementation
• $5 million in Series A – to reach FY03 Targets
– Marketing, Advertising
• Post Money Investor equity with $3 million Investment – 40%
• Post Money Valuation $7.5 million
• IPO e.g Mahindra Holidays
• Trade Sale to Expedia, Travelocity, Sabre etc.
• Trade sale to Private Equity
• FY03 Valuation $300 million
• Expected ROI in 3 years, 2000%