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The Accel 5 “Mantras” of Ecommercein TurkeyPhilippe BotteriWebrazzi SummitOctober 4th 2012, Istanbul

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Disclaimer This document has been prepared by Accel Partners Management LLP (hereinafter Accel). Accel is a limited liability partnership incorporated in England and Wales with registered number OC303424, having its registered office at 16 St James’s Street, London, SW1A 1ER. Accel is authorised and regulated by the Financial Services Authority (the "FSA") and is entered on the FSA register with registration number 222503. This document is provided for information purposes only and does not constitute an offer or a recommendation to purchase or sell any security or service. It is not intended for distribution, publication, or use in any jurisdiction where such distribution, publication, or use would be unlawful. This document forms part of a presentation to persons who have been invited to attend such presentation and must be read and considered in the context of that presentation only. This document does not contain personalized recommendations or advice and is not intended to substitute any professional advice on investment in financial products. Before entering into any transaction, an investor should consider carefully the suitability of a transaction to his/her particular circumstances and, where necessary, obtain independent professional advice in respect of risks, as well as any legal, regulatory, credit, tax, and accounting consequences. This document is the property of Accel and is addressed to its recipient exclusively for their personal use. It may not be reproduced (in whole or in part), transmitted, modified, or used for any other purpose without the prior written permission of Accel.Accel Partners Confidential 2

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We mean “Global” Track record of 225+ exits• Founded in 1983 • Over 500 companies - 100+ public offerings• $9 billion in capital under - 125+ mergers or sales management• Stage agnostic • Added-value partner Accel Confidential 3

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Key trends we are betting onBig Data& Cloud ComputingGamingMobileSocialNext Generationecommerce &marketplacesEmerging Markets(Turkey is next!) Accel Confidential 4

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Turkey is next Strong Macro • 2011 GDP growth 8.1% Trends • GDP per capita grew from $6k in 2001 to $14k in 2011 • 5th European country by internet users (38m) Good Infrastructure • Mobile penetration rate of 90%+ Large and fast • Strong logistics and payments infrastructure growing Internet market, but • Very high credit card penetration (45M+) underpenetrated • 3rd most engaged online audience in Europe Attractive (hours spent) Demographics • Extremely social demographics (no. 5 country on Facebook, no. 8 on Twitter) • Young population (half of the population below 30)Accel Partners Confidential 5

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The Accel Five Mantras of eCommerce in TurkeyAccel Confidential 6

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1 “Me too” is not enough Stay Away from the “Clone War” Number of clones created in Turley • To be successful, you 150 need to be clearly differentiated: − Product − Segment − User acquisition 70 channels • Competition drives margin down: Gross Margin in Turkey usually ½ of what we see in EU/US for comparable 1 2 businessesSource: Forbes Accel Confidential 7

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2 eCommerce is not a cheap journey: be prepared! Successful ecommerce companies have raised $45m+ Institutional capital raised to date, USD 174 Key drivers of cash consumption: 104 • Working Capital: building inventory is 79 65 costly 45 • Marketing costs: second or third baskets are usually NOT FREESource: Accel Analysis, Ventur Source, TechCrunch Accel Confidential 8

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3 Run your business with numbers eCommerce is all about numbers and doing a 100 small things right Customer • CAC (Customer Acquisition Cost): by channel, for 1st basket, 2nd metrics basket… • CLTV (Customer Lifetime Value): revenue - all direct costs – CAC 1st basket – CAC 2nd basket… Website • CPC by channel metrics • Google Quality score • Conversion rate: ratio visitors/ buyers • Traffic sources: evolution of traffic by channel, paid vs. non paid… Financial • Gross Margin/ Contribution margin metrics • EBITDA • Working Capital and Inventory: % of inventory write-off, days payables, % of sales through inventory/consignment, cost of storage by SKU…Source: Accel Analysis • Cash flow Accel Confidential 9

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4 Build your brand by focusing on user experience The strength of your brand will define your profitability Build your brand by providing an outstanding user experience: More Stronger Volume Brand • Product: choice, easiness to use, social features…(measured by conversion) • Service: Fast delivery & Higher Free responsive customerProfitability Traffic service • Payment: Variety of Lower payments and financing CAC optionsSource: Forbes Accel Confidential 10

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5 Mobile will be bigger than you think Mobile already a significant share of … and mobile penetration is quite traffic & transactions in EU/US… high and growing fast Accel Portfolio Examples % of population • Blablacar: Mobile phone • 15% of transactions booked via ~92% penetration expected mobile app to be >100% by 2014 • 20%+ of trips posted via mobile app • US ecommerce: 40%+ of Holiday season traffic coming from tablets • EU ecommerce: 20%+ of sales coming ~25% from mobile app …and this is just the beginning as smartphone and tablet sales are still soaring! 1 Mobile phone 2 SmartphoneSource: ComScore, IPSOS, Google, Informa, Accel Portfolio penetration penetration Accel Confidential 11

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Accel 5 “Mantras” for ecommercein Turkey1 “Me too” is not enough1.2 eCommerce is not a cheap journey: be prepared!2.3 Run your business with numbers3.4 Build your brand by focusing on user experience4.5 Mobile will be bigger than you think5. Accel Confidential 12

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Thank you! Follow me on Twitter @pbotteriAccel Confidential 13