Talk by Melih Odemis, Co-Founder - Yemeksepeti (TR), at Stanford on Jan 25 2016, in our session on 'Turkey & Romania :: Food Delivery & Wearables Startups'. Website: http://www.StanfordEuropreneurs.org YouTube Channel: https://www.youtube.com/user/StanfordEuropreneurs Twitter: @Europreneurs

1. ENTREPRENEURSHIP
Melih Ödemiş
Co-Founder, Yemeksepeti.com
Angel Investor, Galata Business Angels
TURKEY
START-UPs
@melihodemis
melih@yemeksepeti.com

3. ONTARGET
DAILY

4. BUT…. Why in Istanbul???

5. FACTS ABOUT ISTANBUL
Age: 3000 years
Median Age: 30
Economy: %30 of Turkey
Population: 15 Million
In 2000:
Internet penetration < 10%
Food delivery: Existing but many single
restaurants with no infrastructure
Today:
Internet Penetration: 70-80%
Mobile Penetration: 100%
Hundreds of local or international
restaurant chains with 100s of branches
all over Turkey

6. ONTARGET

11. MENU
• ONLINE FOOD DELIVERY – A BRIEF HISTORY
• MELİH ÖDEMİŞ – BIO // LOCAL & GLOBAL CONTEXT
• DARK AGES... YEMEKSEPETI IS BORN...
• YEMEKSEPETI.COM 2.0 - RESTRUCTURING
• YEMEKSEPETI.COM 3.0 and EXIT
• NEW OPPORTUNITIES FOR YEMEKSEPETI AND MELIH
• Q & A

12. A brief history of Online Food Delivery
GLOBAL MARKET IN NUMBERS
• MILLIONS OF ORDERS EVERY DAY
• 10-15$ EACH ORDER
• $20B ANNUAL TRANSACTION VOLUME
• $2-3B IN REVENUES
• %30-40 ANNUAL GROWTH

13. Melih Ödemiş BIO & Context
@ 1976 Born in Istanbul , Turkey
Same year as Apple
@ 1995 St Georg Austrian School, Istanbul
Windows 95 released; Amazon.com,ebay.com launched
First Internet Service Providers in Turkey, dial-up
@1999 Boğaziçi U. Computer Science
Google is live (98), AOL buys ICQ for $400M
Basic Portals in Turkey
@1999-2000 Citibank İstanbul, Treasury
Dot-com bubble bursts
01’ Biggest Economic Crisis in Turkey
@ 2002 Boğaziçi U. MBA
eBay acquires Paypal for $1.5B
Yemeksepeti.com is 1 year old
2001 - 2013 Yemeksepeti.com, CIO
2007 Endeavor Entrepreneur
2011 Galata Business Angels – Angel Investor
---- Melih
---- Silicon Valley
---- Turkey / YS

14. Melih Ödemiş BIO & Context
@ 2012 still CIO & started Angel Investing
Facebook goes public for $104B
General Atlantic buys %36 of Yemeksepeti.com for $44M
@ 2013 no more CIO
GrubHub and Seamless merge, creating the biggest online food delivery
company
Gezi protests in Turkey
@ 2014 traveling in Latin America
GrubHub - Seamless from USA and Just-Eat in Europe go public, each
around $3B market cap
Initial talks with potential buyers for Yemeksepeti.com
@ 2015 yemeksepeti SOLD....
Apple’s market cap passes $700B , close to Turkey’s GDP
Delivery Hero from Germany buys Yemeksepeti.com for $589M, biggest
exit in Turkish Internet ecosystem so far
---- Melih
---- Silicon Valley
---- Turkey / YS

15. First and biggest online food delivery portal in
Turkey bringing together consumers and delivering
restaurants.
• 2000, 4 founders in Istanbul, all 24, NO ecosystem
• 2001 – deepest economic crises in history
1$=600.000 TL >>>> 1$= 1.750.000 TL in 3 months
• 2005, breakeven, active in 3 big cities , daily 1.500
orders
• 2005, Broadband Internet arrives, survival of fittest
dotcoms
• 2008, minority investment from European Founders
Fund (Rocket Internet), active in 18 cities, daily
10.000 orders
Yemeksepeti.com 1.0 - DIFFICULT TIMES…

16. ONTARGET
3 Main Areas of Growth
1 Growth in our core business
2 Geographical expansion
3 Product portfolio expansion
Yemeksepeti.com 2.0 – CORE Growth and BEYOND

17. Biggest online food delivery portal in Turkey expanding into
MENA region and aiming to be #1 brand related with Food &
Internet
• 2008-10, total restructuring, 25 cities in Turkey
Russia (izrestorana.ru) and UAE (foodonclick.com) launched,
daily 25.000 orders
• 2012, Russia closed. UAE showing good growth. New countries
added in MENA and Greece.
• 2012, General Atlantic from USA invests $44M for minority stakes
as growth capital
• Irmik.com, Lokum.com , Papyon.com, yemek.com launched
• Expanded activities into Lebanon, Jordan, Saudi Arabia, Oman,
Qatar, Bulgaria, Romania
Yemeksepeti.com 2.0 – CORE Growth and BEYOND

18. ONTARGET
Geographical Expansion

19. ONTARGET

20. ONTARGET

21. ONTARGET

22. ONTARGET

23. ONTARGET
Product Portfolio Expansion
Delicacy e-commerce
for foodies
B2B Procurement for
restaurant
owners
Reservation &
Reviews For eating
out
Content &
Life style

24. • Mar 2013, daily orders ~60.000, active in ~50 cities in Turkey
• Jun 2014, daily orders ~80.000
• 2014, Just-Eat and Seamless & Grubhub went public
• Jan 2015, daily record > 100. 000 orders / day in TR
• Jan 2016, daily record > 130. 000 orders / day in TR
Yemeksepeti.com 3.0 and EXIT

25. • May 2015, acquired by Delivery Hero from Germany, for
$589M, biggest internet exit in Turkey so far
• Shared $27M with employees in the company according to the
Management Incentive Plan
signed in 2012, another PIONEER ACTION
Yemeksepeti.com 3.0 and EXIT

26. • 2011, started first Angel investment activities with GBA
• 2013 July, quit my exec position, replaced CTO, continued
on Board until Exit
• 2014 Jan – Apr ,a long postponed dream coming true... on the
way for 75 days in Latin America, 8 countries, 25 locations
• 3 fund investments and ~20 angel investments since 2011, in
Turkey, Israel, Switzerland, Greece, UK
Melih 3.0

27. • A few significant Exits done, but unicorns neeeded
• Major hubs: Istanbul (15M), Ankara (5M), Izmir (5M)
• Young and more entrepreneurial, tech-savvy population
• Handful of active Angel Investment Groups
• Handful of local VCs, a few active international VCs
• Significant awareness of big corporates and universities,
especially private universities in hand with business world
• Many incubators, accelerators, co-working spaces
• THE GAME HAS JUST STARTED!!!
Turkey as an emerging start-up ecosystem

28. Melih en camino...

29. Melih en camino...

30. THANK YOU!
Q & A
@melihodemis
Melih Ödemiş
Co-Founder, Yemeksepeti.com
Angel Investor, Galata Business Angels

31. APPENDICES

32. Turkish Startup Ecosystem Summary
Turkish Startup Ecosystem has three generations.
Startups in the first generation are the ones before broadband (1999-2004). It
consists of Gittigidiyor (acquired by eBay, $217.5M in 2011), Yemeksepeti (acquired
by DeliveryHero, $589M in 2015), Hepsiburada (Amazon of Turkey, 25% is acquired
by Abraaj Group in 2015), Sahibinden (Craigslist of Turkey, not acquired yet), Biletix
(acquired by Ticketmaster in 2006).
The second generation is between 2004-2010, there is broadband in Turkey but no
VC yet. Friends and Family is the main financing option in that period.
The third generation is the generation of VC-backed startups (2010 - ). Markafoni
(private shopping startup, acquired by Naspers, ~$200M in 2011), Trendyol (private
shopping startup backed by KPCB, Tiger Global), Iyzico (Stripe of Turkey), Peak
Games (Zynga of Turkey), Gram Games (Rovio of Turkey, 25M downloads with 1010
game) and many more startups.

33. Between 2010 to 2015, first local VC funds are established (212, Revo Capital, DCP,
Act, String Ventures, Doga Girisim). Earlybird, Hummingbird, Intel Capital, 500
Startups, 3TS have existence in Turkey via some local managing/venture partners.
In total, 41 foreign and local VCs have participated at least one investment round
since 2010. Government has big role in startup ecosystem via accreditation and
grants. Tubitak (grants arm of the government) has lots of grants for startups,
accelerators and also VCs. Treasury deparment also giving accreditation for angel
investors since 2013 so that angel investors are benefiting from tax advantages. As
of July 2015, there are 318 accredited angel investors in Turkey. Treasury
department also accredited angel networks. There are 10 accredited angel
networks in Turkey.
Approximately 300 startups founded every year since 2010. In the same period, 230
investment rounds made (46/year) and raised ~$250M in total. Last year, Istanbul
Stock Exchange established dealroom for investors and startups similar to Nasdaq
Private Market (joint venture with SharesPost)