Sochi Invest Weekend by iidf.ru event for business angels

1. Gorki-Panorama Hotel
7-10 February, 2019

2. 2
Indian Venture Capital Stories
why India is hot, and why I moved there

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

4. Kirill Kozhevnikov, Partner, RTP Global (ex ru-Net)
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
• Deployed $22.7M (55%) of the initial fund
• Completed 2 follow-on (up) rounds, and 1 bridge round
• Invited 2 funds with Russian capital and syndicated two Indian deals
• Invested in personal capacity as an LP into Indian fund and into Indian companies
• 2 M&A tracks pending (one is closing as we speak – 1st successful exit)
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
• Ms in Engineering & Economics
• MBA
• Venture Academy

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

6. 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. 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 across the board – 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

8. 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. 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. 10
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)

11. 11
Walmart IR presentation – select excerpts (1/2)

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

13. 13
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

14. 14
Indian VC Landscape (illustrative)

15. 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. 16
Five o’clock case-study
surprisingly Russia has decent markets

17. 17
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

18. 18
Russian Tea market vs. Russian Cloud Services market (2017)
Tea
$ 3,000 M
Cloud Services
$ 664 M
Source: IDC, https://www.idc.com/getdoc.jsp?containerId=CEMA42087217Source: Euromonitor

19. 19
kkozhevnikov@rtp-global.com
kirillkozhevnikov
kyrillks
@AgentMasala