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India starts up –
walkabout notes

                    Rajiv Prakash
                    X Media Labs - Global Media Ideas
                    Vivid Sydney
                    June 8, 2012
                    @rajivprakash
                    rajiv@nextin.biz

1
A start-up journey…
             Interactions, travels …


             400+            Start-ups & entrepreneurs


             43              Ecosystem players


             18              VCs and incubators

2011
    Start    5                Countries


2
             10               Indian cities
Conversation starter …


• Entrepreneurship in India – a macro view

• Observations about start-up models in India

• An idea about cross-border start-up connections


4
Aspiration drives a billion Indians




 5
The entrepreneur is India’s new role model




 6
Start-ups are creating or reshaping a diverse set of sectors

         Housing                               Alternative Energy
                    Microfinance   Logistics
     Engineering                                    Pharma
         Biotech eCommerce Marketing              Payments
    Chemicals        Media        Infrastructure    Hospitality
              Gaming         Transport
          Food                                   Agriculture
                 Entertainment        Retail
                                             Mobile
     Business         Education Health                  Waste
                                             Services
     Services Defence                                   Management
       Sports                 Advertising    Tourism
               Business
               Software        Skills Development     Tech services

7
US$1                     US$140+
                      14%
    trillion                     billion
Total Indian market         Market capitalisation
   capitalisation           created by start-ups
                            established between
                                 1995-2010




8
With $1TN growth projected in 10 years, the domestic consumption
sector is a start-up favorite

The Sharma
  Family




  Our first
experiences
  diary –
  2013-15
 9
Profiling Start-Ups




11
Nature of start-up innovation




     Unknown means to achieve known outcomes

12
“Jugaad” innovation




13
14
Product and the Platform based start-ups emerge




      Infosys        TCS      inMobi     Fusion Charts   Reverie

      Wipro       Cognizant   Billdesk     Dimdim        Capillary

                              Martjack    Slideshare        Zoho

      Offshore based IT       Products and Platform-based
      services                businesses

 15
India emerging as a global hub for Social Enterprises




          Urban Poverty             Rural Poverty
 16
Ripples of entrepreneurship – start-ups create new self-
employment driven businesses at the edge



A State Bank of
India bank
branch
reimagined by
Eko




 17
Self-employed
solar lamp sales
person for rural
India




18
Goli Vada Pav” – Franchisee stores in
     Coimbatore, Bangalore and Aurangabad
19
One Stop
Physical-Online
Shop for all
tickets with
rented prepaid
cards




  20
Digital Wellbeing
professionals for
the masses




  21
Digital Wellbeing
professionals for
the masses




  22
“Reverse Innovation”




23
“Reverse Innovation”

US$200 Baby Warmer replaces   Portable ECG at 10% cost of
US$5000 product               standard product




24
“Reverse Innovation”

Rice Husk based Power Generation   Sturdy, low cost solar powered light




25
10 key challenges facing start-ups in India

1. Achieving scale and learning to     6. Product mindset still evolving
   think big                           7. Capital – availability, cost and
2. Quality entrepreneur supply            investor – investee relations
3. Risk taking culture low, low        8. Lack of large corporate
   tolerance for failure                  connections and lack of
4. Weak domestic market                   acquisition culture
   economics                           9. Limited access to senior and
5. Limited global vision (outcome of      experienced talent
   domestic focus)                     10. Poor readiness for exit



26
Start-Ups & Global Corridors




27
Start-ups are globally connected organisms –
Victor Hugo was right

                                                Entrepreneur
                          Design
     Incubator



                                                          Entrepreneur

     Services

                Capital

                                                         Market
                                   Production

28
Global corridors, through the Indian diaspora and university
connections, link Indian start-ups to resources and markets

 Country        Entre-    Capital      Concept      Produc-       Market   Talent   Incubate   Acqui-
                preneur                             tion                                       sition

 US

 China
 UK
 Germany
 Singapore

 Israel
 South Africa

 Japan
 UAE / Gulf


Countries connected to “start-up India” and areas of engagement
(illustrative, not exhaustive)

 29
Example: Greenlight Planet, a solar-powered lighting
start-up


                          Venture Capital
       Co-founder,
       Angel funding                                      Design,
                                                          Production

                                            Co-founder,
                                            Start up,
                            Market          Market,
                                            Context




30
Another example of a start-up global partnership




     Winning team : Kolkata Knight Riders (KKR)
     Team nationalities : Australia, Bangladesh, England, India,
     Netherlands, New Zealand, Pakistan, South Africa, West Indies
31
India and Australia have strong complementarities –
Start-ups increase, accelerate and innovate the
connections

                     Creative                  Creative
                     Sector                    Sector
            Medical                                   Consumer
                                    History
            Tech                                      demand
                   Product          Cricket
                                 Entertainment                Social
                    dvlpt                                   Enterprises
         Sports                      Trade
                                   Tourism           Frugal
          Consumer
                                  Education          product dvlpt
                                   Diaspora
             Event Research          …??               Services
             mgmt
                                               Event
                         Water                 mgmt


 32
Indo-Australian start-up corridor - a world of possibilities
to be discovered for start-ups in both nations

        Time to market       Investment, Cost, Risk
        More for less


        Capital Access       Markets,
                             IP Distribution

                                                      Co-create
        Access to             Access to
        skills and            products
        expertise             & services

33
A new innings …

                                “ … We (Australia and India) share something else other than
                                cricket. Before they played the first Test match against each
                                other, Indians and Australians fought wars together, on the
                                same side. In Gallipoli, where, along with the thousands of
                                Australians, over 1300 Indians also lost their lives. In World
                                War II, there were Indian and Australian soldiers in El
                                Alamein, North Africa, in the Syria-Lebanon campaign, in
Rahul Dravid, Former Captain    Burma, in the battle for Singapore. Before we were
of the Indian Cricket team,
“Bradman Oration”, Canberra -   competitors, Indians and Australians were comrades. ….”
Australia, 2011



35
Let’s talk …

• Entrepreneurship in India

• Observations about start-up models in India –

• Cross-border start-up connections

• Your ideas, views?

36
Digital/ e-                Start-ups /                Enterprise Digital                Start-up
     Commerce                Entrepreneurship               Transformation                  corridors

Helping offline           • Scaling up:                   • Discovery Workshops       • Assistance in cross-
businesses succeed           • Business mentoring           – identifying digital       country start-up
online:                      • Strategy and business        transformation              collaboration for
• Online Strategy &            plan review                  opportunities cross-        access to markets
  Model Design               • Performance                  function, pan-              or resources
• Opportunity Discovery        management                   enterprise                • Clients include start-
  and Planning               • Organisation               • Design and program          ups, investor
  Workshops                    strengthening                management of               networks and
• Execution Mentoring        • Business development         digital opportunities -     investment
• Partner Selection            and alliances                commerce, customer          promotion agencies
• Loyalty, customer          • Distribution and sales       service, marketing,
  service & digital            channel development          supply chain, etc.
  marketing integration      • Exit advisory
                          • Early stage start-up clinic
                            and executive support
India starts up –
walkabout notes

                    Rajiv Prakash
                    X Media Labs - Global Media Ideas
                    Vivid Sydney
                    June 2012

                    rajiv@nextin.biz

38

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India Starts Up - Journey Note

  • 1. India starts up – walkabout notes Rajiv Prakash X Media Labs - Global Media Ideas Vivid Sydney June 8, 2012 @rajivprakash rajiv@nextin.biz 1
  • 2. A start-up journey… Interactions, travels … 400+ Start-ups & entrepreneurs 43 Ecosystem players 18 VCs and incubators 2011 Start 5 Countries 2 10 Indian cities
  • 3. Conversation starter … • Entrepreneurship in India – a macro view • Observations about start-up models in India • An idea about cross-border start-up connections 4
  • 4. Aspiration drives a billion Indians 5
  • 5. The entrepreneur is India’s new role model 6
  • 6. Start-ups are creating or reshaping a diverse set of sectors Housing Alternative Energy Microfinance Logistics Engineering Pharma Biotech eCommerce Marketing Payments Chemicals Media Infrastructure Hospitality Gaming Transport Food Agriculture Entertainment Retail Mobile Business Education Health Waste Services Services Defence Management Sports Advertising Tourism Business Software Skills Development Tech services 7
  • 7. US$1 US$140+ 14% trillion billion Total Indian market Market capitalisation capitalisation created by start-ups established between 1995-2010 8
  • 8. With $1TN growth projected in 10 years, the domestic consumption sector is a start-up favorite The Sharma Family Our first experiences diary – 2013-15 9
  • 10. Nature of start-up innovation Unknown means to achieve known outcomes 12
  • 12. 14
  • 13. Product and the Platform based start-ups emerge Infosys TCS inMobi Fusion Charts Reverie Wipro Cognizant Billdesk Dimdim Capillary Martjack Slideshare Zoho Offshore based IT Products and Platform-based services businesses 15
  • 14. India emerging as a global hub for Social Enterprises Urban Poverty Rural Poverty 16
  • 15. Ripples of entrepreneurship – start-ups create new self- employment driven businesses at the edge A State Bank of India bank branch reimagined by Eko 17
  • 17. Goli Vada Pav” – Franchisee stores in Coimbatore, Bangalore and Aurangabad 19
  • 18. One Stop Physical-Online Shop for all tickets with rented prepaid cards 20
  • 22. “Reverse Innovation” US$200 Baby Warmer replaces Portable ECG at 10% cost of US$5000 product standard product 24
  • 23. “Reverse Innovation” Rice Husk based Power Generation Sturdy, low cost solar powered light 25
  • 24. 10 key challenges facing start-ups in India 1. Achieving scale and learning to 6. Product mindset still evolving think big 7. Capital – availability, cost and 2. Quality entrepreneur supply investor – investee relations 3. Risk taking culture low, low 8. Lack of large corporate tolerance for failure connections and lack of 4. Weak domestic market acquisition culture economics 9. Limited access to senior and 5. Limited global vision (outcome of experienced talent domestic focus) 10. Poor readiness for exit 26
  • 25. Start-Ups & Global Corridors 27
  • 26. Start-ups are globally connected organisms – Victor Hugo was right Entrepreneur Design Incubator Entrepreneur Services Capital Market Production 28
  • 27. Global corridors, through the Indian diaspora and university connections, link Indian start-ups to resources and markets Country Entre- Capital Concept Produc- Market Talent Incubate Acqui- preneur tion sition US China UK Germany Singapore Israel South Africa Japan UAE / Gulf Countries connected to “start-up India” and areas of engagement (illustrative, not exhaustive) 29
  • 28. Example: Greenlight Planet, a solar-powered lighting start-up Venture Capital Co-founder, Angel funding Design, Production Co-founder, Start up, Market Market, Context 30
  • 29. Another example of a start-up global partnership Winning team : Kolkata Knight Riders (KKR) Team nationalities : Australia, Bangladesh, England, India, Netherlands, New Zealand, Pakistan, South Africa, West Indies 31
  • 30. India and Australia have strong complementarities – Start-ups increase, accelerate and innovate the connections Creative Creative Sector Sector Medical Consumer History Tech demand Product Cricket Entertainment Social dvlpt Enterprises Sports Trade Tourism Frugal Consumer Education product dvlpt Diaspora Event Research …?? Services mgmt Event Water mgmt 32
  • 31. Indo-Australian start-up corridor - a world of possibilities to be discovered for start-ups in both nations Time to market Investment, Cost, Risk More for less Capital Access Markets, IP Distribution Co-create Access to Access to skills and products expertise & services 33
  • 32. A new innings … “ … We (Australia and India) share something else other than cricket. Before they played the first Test match against each other, Indians and Australians fought wars together, on the same side. In Gallipoli, where, along with the thousands of Australians, over 1300 Indians also lost their lives. In World War II, there were Indian and Australian soldiers in El Alamein, North Africa, in the Syria-Lebanon campaign, in Rahul Dravid, Former Captain Burma, in the battle for Singapore. Before we were of the Indian Cricket team, “Bradman Oration”, Canberra - competitors, Indians and Australians were comrades. ….” Australia, 2011 35
  • 33. Let’s talk … • Entrepreneurship in India • Observations about start-up models in India – • Cross-border start-up connections • Your ideas, views? 36
  • 34. Digital/ e- Start-ups / Enterprise Digital Start-up Commerce Entrepreneurship Transformation corridors Helping offline • Scaling up: • Discovery Workshops • Assistance in cross- businesses succeed • Business mentoring – identifying digital country start-up online: • Strategy and business transformation collaboration for • Online Strategy & plan review opportunities cross- access to markets Model Design • Performance function, pan- or resources • Opportunity Discovery management enterprise • Clients include start- and Planning • Organisation • Design and program ups, investor Workshops strengthening management of networks and • Execution Mentoring • Business development digital opportunities - investment • Partner Selection and alliances commerce, customer promotion agencies • Loyalty, customer • Distribution and sales service, marketing, service & digital channel development supply chain, etc. marketing integration • Exit advisory • Early stage start-up clinic and executive support
  • 35. India starts up – walkabout notes Rajiv Prakash X Media Labs - Global Media Ideas Vivid Sydney June 2012 rajiv@nextin.biz 38