AIESEC Alumni Congress - Russia - Moscow - India VC Stories

Desna, Moscow Region
20 April, 2019
XXIX Congress AIESEC Alumni RU

XXIX congress AIESEC Alumni RU
2
Indian Venture Capital Stories
- technology & investment rush
- Indian entrepreneurs
- power of demographics
bonus track on Russia:
- big niche sectors
- exceptional talent

Content
• Intro
• Surprise quiz with a purpose
• Why India
• Indian entrepreneurs
• Recent mind-blowing game-
changing events and
developments
• Indian VC space
• Five o’clock case-study
• Russian tech companies and
founders
• Contacts
• Q&A 3

Kirill Kozhevnikov, Partner, RTP Global (ex ru-Net Holdings)
India experience
• 4 years and counting, incl. 3 years as an expat on the ground (Delhi)
• Developed, structured, launched a CVC fund in India/Singapore; hired senior professionals
• Lead Partner on 5 out of 10 investments deals in 2016-2018, Board Member in 3 Indian and 1
Singaporean companies, Board observer in 1 Indian company
• Invited 2 funds with Russian capital and syndicated two Indian deals
• Completed 2 follow-on (up) rounds, and 1 bridge round
• 1 exit (>30% IRR)
• Invested in personal capacity into Indian fund and into Indian companies
• 2 new deals are at the final stage of closing
Previously
• 2 years in Russian VC (startup side + micro VC fund)
• 3 years in nanotechnology sovereign fund
• 7 years in M&A and corporate finance
• 2 years in big four company 4
Education
• Moscow Aviation Institute
• University of Chicago
• Venture Academy

5
multiple choice test
and a chance to win good dry red wine
from invisible.ru

6
Why India
• Fastest Growing Economy in the World
$2.2T economy (real GDP) growing at >6% per annum
$8.7T economy in PPP terms – 3rd largest after USA and China and expected to be #2 in 15 years
• Attractive Demography
Young population with 50% <25 years of age
7M college graduates per year with 100K from premier engineering colleges (e.g. IIT, NIT)
• Substantial and Growing Middle Class
156M Urban Middle and Urban Mass consumers
~$2000 per capita spend growing at between 6-8% per annum
• Technology Leapfrogging Traditional Businesses
700M internet users by 2020 (2.5X of 2017)
220M transacting users by 2020 (5X of 2017)
>5% e-tailing penetration by 2020 (4X from 2017 of 1.5%)
• Positive Government Policies
Make in India
Startup India
Digital India
and others

7
Indian Talent Pool Offers a Winning Combination of Passion And Hard Skills
• AGER* 2018 ranks India as the top destination for entrepreneurship amongst 44 countries
• High energy and passion – from senior corporate executives to recent engineering graduates
• Joining a startup is a badge of honor
• Engineers from IITs and NITs have taken the lead in startups (their alumni are in Google, Facebook,
Twitter, etc.)
• Steady supply of top tier talent; IIT capacity being enhanced to 100K graduates per year
• English is the preferred language of communication
• Universal language leading to formation of multi-cultural and global teams
• Ability to attract best talent from across the world
Passion
Education
Language

Desire: I consider starting a
business as a desirable career
opportunity for myself
Stability: My family or friends
could never dissuade me from
starting a business
Feasibility: I possess the
necessary skills and resources
for starting a business
https://www.amwayglobal.com/wp-content/uploads/2018/03/
🇮🇳
🇷🇺
🇺🇸🇨🇳
🇩🇪🇫🇷🇬🇧

9
Aadhaar – largest biometric ID system in the world
• Launched in January 2009 Aadhaar is…
• …"the most sophisticated ID programme in the world” (World
Bank Chief Economist Paul Romer)
• 12-digit unique identification (UID) number
• The number is linked to the resident's basic demographic and
biometric information such as a photograph, ten fingerprints
and two iris scans, which are stored in a centralised database
• Serves as proof of residence and National ID document
• As of July 2018 there were 1.22 billion registered users
• On 1 March 2018, Virtual ID aka VID was introduced and was
made as an option for agencies to use Virtual ID by 1
September 2018. A Virtual ID is a 16 digit number that is
generated using your Aadhaar number. This Virtual ID can
then be used instead of your Aadhaar number to carry out
some Aadhaar related work.

10
Jio – (probably) the most innovative telecom company in the world
• Founded in 2013 by Mukesh Ambani
• Headquartered in Mumbai, Maharashtra,
India
• www.jio.com
• >$35B investments
• LTE network soft launched in December
2015, fully launched in September 2016
(commercial launch)
• In Q3 FY2018-2019 Jio reported the fifth
profit making quarter in a row
• As of November 2018 company had 272M
subscribers

11
Victory Day in India: Walmart acquired 77% of Flipkart for $16B
• Key highlights
Acquired 77% ownership
Size of the deal $16B
Fresh equity (primary) $2B
Flipkart Post-Money Valuation $20.8B
• Largest M&A of all time:
Largest e-commerce deal in the World
Largest M&A in India (including O&G, Steel, Aluminum, Telecom, etc.)
• Investors from all rounds earn great returns (illustrative/not accurate)

12
Walmart IR presentation – select excerpts (1/2)

13
Walmart IR presentation – select excerpts (2/2)

14
Indian VC Landscape (illustrative)

before
2008
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Boris Ryabov
Oscar Hartman
15
Government
Corporate
VC funds
Angels
Russian investors by type and vintage
15 investments
3 exits
4+ investments
2 exits
10 investments
1 exit
2 investments
5 investments
1 exit
6 investments

16
Demographics matters

17
Demography matters…
• India: 1.3B population /
average age 25
• Russia: 143M population /
average age 40
• India expect 240M workforce
increase in the next 20 years…
• Russian Christmas tree has a
lot of negative features which
will impact our present and
future

18 Source: VTB Capital (2016)
• Most significant changes are in 25-35 yo
and above 65 yo cohorts
• diminution of the most active population
(potential entrepreneurs) due to the crisis
in the 1990s
• hike in pension-age cohorts (1950s baby
boomers reached/are reaching pension
age)
Unique Russian demography is kicking painfully

19
Five o’clock case-study
surprisingly Russia has decent markets

20
Teabox: Indian founder is disrupting 200-years old supply chain
• Teabox is a provider of an online platform for the distribution
of tea: the company sources tea directly from gardens,
processes it and sells online through its portal to more than
100 countries
• Vision of the company is to create world’s best and freshest
tea brand in premium segment available online 24/7
• Key differentiator of the business model – freshest and best
tea within 5 days from the garden (comparing to more than
160 days lead time average in the sector worldwide)
• Company’s institutional investors: Accel India, Jafco
Investment Asia, Dragoneer Investment Group, DBS
• High-profile individual investors include Robert M. Bass,
Cameron Jones, Henry Jungas, Ratan Tata, ex-CEO of Tata
Global Beverages, and a Yandex top-executive
• Since its origin in 2012 the company has raised around
$14M, including $6M Series A in March 2015, and $7M
Series B in December 2017

21
Russian Tea market vs. Russian Cloud Services market (2017)
$ 3,000 M
Cloud Services
$ 664 M
Source: IDC, https://www.idc.com/getdoc.jsp?containerId=CEMA42087217Source: Euromonitor

22
Russia also has very good entrepreneurs

20 Russian technology companies with highest capitalisation
1997 / $10.7B
https://www.forbes.ru/tehnologii-photogallery/372539-20-samyh-dorogih-kompaniy-runeta-2019-reyting-forbes
1998 / $5.4B
2007 / $3.9B
2004 / $1.2B
1998 / $0.7B
2000 / $0.3B
2008 / $245M
1999 / $243M
2011 / $226M
2007 / $204M
2007 / $196M
2006 / $151M
1998 / $110M
2012 / $109M
2007 / $106M
2017 / $97M
2014 / $96M
2002 / $95M
2000 / $93M
2012 / $88M

24https://vc.ru/team/61882-37-proektov-rossiyskogo-proishozhdeniya-za-kotorymi-stoit-sledit-v-2019-godu
2012
2012
2016
2012
2015
2016 2016
Russian high potential tech companies
2016
2014
2014
2015
2011
2013
2017
2012
2017
2017 2010
2018
2014
2015
2014
2009
2018
2013
2017
20102017
2015
2015
2014
1999
2014
2016

25

26

27
Key takeaways
• Always extend your horizons
• Think globally
• “Stay true to your dreams”
• Entrepreneurship is brutal
- Lean startup always makes sense
- Do assess risks (statistically most of startups fail)
- Lifestyle business is a very good option (as long as it is profitable)
• Skin in the game!

28
k.kozhevnikov@gmail.com
kirillkozhevnikov
kyrillks
@AgentMasala

AIESEC Alumni Congress - Russia - Moscow - India VC Stories

Recommended

Recommended

More Related Content

What's hot

What's hot (16)

Similar to AIESEC Alumni Congress - Russia - Moscow - India VC Stories

Similar to AIESEC Alumni Congress - Russia - Moscow - India VC Stories (20)

Recently uploaded

Recently uploaded (20)

AIESEC Alumni Congress - Russia - Moscow - India VC Stories