India is experiencing a digital transformation fueled by increased internet and smartphone penetration. This is powering unprecedented growth of the startup ecosystem, with India on track to become the third largest startup hub in the world. Digitization is accelerating across sectors like education, finance, healthcare and is formalizing many informal economies. The COVID pandemic further accelerated India's digital leap by 5 years, increasing data consumption and driving adoption of online services. This digital revolution is expected to help India become a $10 trillion economy and a global powerhouse.

1. India - A
Startups Nation
Transforming India through Digital India
TV Mohandas Pai | 3one4 Capital
@TVMohandasPai | @3one4Capital

2. Digitization has transformed the world
Source: We Are Social
TV Mohandas Pai © 3one4 Capital

3. Source: a16z, Visual Capitalist
The early-movers now dominate the market
Apple
$2024B
Microsoft
$1752B
Amazon
$1534B
Alphabet
$1374B
Alibaba
$617B
Facebook
$794B
Tencent
$748B
Berkshire
Hathaway
$577B
Samsung
$482B
2021
Mkt. Val.($bn) as of Feb,2021
Tesla
$615B

4. CREDIT
CARDS
HOME
AUTOMATION
MUSIC
AUTONOMOUS
CARS
PERSONALIZED
HEALTHCARE
TELE-
COMMUNICATION
PERSONAL
ASSISSTANT
GROCERY
HOME
SECURITY
The New Normal – Global Tech Conglomerates
Tech companies dominate globally and will continue to accrete disproportionate control over new value creation

5. New monopolies and $1T companies will be built upon inalienable data
advantages.
Tech-forward businesses are now
Expansionist Monopolies

6. Digitisation is transforming India too
Source: We Are Social TV Mohandas Pai © 3one4 Capital

7. India Internet on a high growth trajectory
Cost of data – one of the lowest in the world, rapid increase in wireless broadband subscribers and subsequently increased data usage
Every second person in India has Internet
133
258
395
545
654
0
200
400
600
800
2016 2017 2018 2019 2020
Wireless broadband subscribers (3G+4G) in India
(Mn)
5x in 5 years
0.8 1.3
6.4
10.8
14.6
0
5
10
15
20
2016 2017 2018 2019 2020
Data usage per month per user (GB)
17x in 5 years
0.2 0.5 0.6 0.6 1
1.4
3.9
8
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B
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a
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U
K
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a
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U
S
A
Data Price per GB (US$)
Cost of Data in India is one of the lowest in
the world
Source: Goldman Sachs India Internet Report TV Mohandas Pai © 3one4 Capital

8. How does India fare against emerging and developed nations?
‘India Internet’ on a high growth trajectory
Ecommerce penetration in India is
expected to be faster than
developed nations such as USA
China India Indonesia USA
Internet Users 855 Mn 688 Mn 175 Mn 288 Mn
Daily time spent on
media
Internet
Social Media
Music Streaming
Games
5h 50m
2h 12m
1h 31m
1h 24m
6h 30m
2h 24m
1h 53m
1h 21m
7h 59m
3h 26m
1h 30m
1h 23m
6h 42m
2h 03m
1h 35m
1h 09m
Digital Ride Hailing 459 Mn 174 Mn 22Mn 66Mn
Smart home
households
34 Mn 10 Mn 1 Mn 35 Mn
Digital payment user
penetration
49% 4% 11% 77%
India shows high appetite for digital
consumption across verticals
India now accounts for 9% of global app downloads
Source: Goldman Sachs India Internet Report TV Mohandas Pai © 3one4 Capital

9. Unprecedented rise in digital spending across categories
Covid accelerated digital Reset
Current users indexed to pre-covid users % consumers who increased online spends during COVID
1.43
1.18
1.1
1.04
Staples Apparel Mobile Order-in
Rise in first time online shoppers
49%
32% 32%
25%
Staples Apparel Mobile Order-in
Increase in online spends among
existing online shoppers
Source: BCG Covid 19 Consumer Sentiment Survey TV Mohandas Pai © 3one4 Capital

10. Consumer led digital leap
Increased app usage contributing to significant opportunities for internet companies
Increased app usage… … India Internet’s $180Bn Opportunity
3
16
17
8
73
71
138
29
20
38
71
205
269
388
0 100 200 300 400 500
Bigbasket
Makemytrip
Ola cabs
Zomato
Paytm
Amazon
Youtube
Unique visitors across verticals (Mn)
2020 2017
Source: Goldman Sachs India Internet Report TV Mohandas Pai © 3one4 Capital

11. “
”
TV Mohandas Pai © 3one4 Capital
The Startup Ecosystem will help
create a USD 10 Trillion
economy in India

12. 3rd
largest startup
ecosystem in the World
55,000+
startups
USD 315Bn
Value Created
Indian Startup
Ecosystem
Source: 3one4 Capital Estimates, Yourstory, Inc42, Tracxn TV Mohandas Pai © 3one4 Capital

13. New flywheel ramping up
IT Services took off
2015
USD 194 Bn revenue
USD 150 Bn exports
4.5 Mn People Employed
1989
2025
100,000
Startups
Employ
3.25 Mn
US$ 100Bn
to be invested in
2021-25
#2
after US
150
Unicorns
Projections
IT
Services
2025
Startups take off
Startups
What lies in store
Source: IBEF, Nasscom, 256 Network Report
FY 2021 (pr)
TV Mohandas Pai © 3one4 Capital

14. Startups at a glance
Startups have raised
USD 70Bn from 2014-20
250+ Accelerators &
Incubators
500+ Institutional Investors
2000+ Active Investors
700+ Acquisitions
67%
of all active
startups
are concentrated in
Bengaluru, Mumbai
and Delhi-NCR
Bengaluru saw 45%
of the total deal value
between 2017-20
Delhi
Mumbai
Bengaluru
26%
20%
36%
% deals per city
Source: Yourstory, Inc42, 3one4 Capital
Startups raised USD 11.5Bn across 924 deals in 2020
amidst a Covid-impacted year
Hyderabad
3%
Chennai
4%
TV Mohandas Pai © 3one4 Capital

15. India’s
58* unicorns
have created
180Bn in value
There will be
150+ unicorns
in India by 2025
Source: 3one4 Capital, Tracxn | *2 Unicorns are now listed
$5Bn+
Soonicorns
U
n
i
c
o
r
n
s
TV Mohandas Pai © 3one4 Capital

16. Indians are creating Unicorns Globally
Source(s): 256 Network Family Office Report
Notable US startups with Indian origin founders
4.2M
Indians in
USA
67
US Unicorns with
Indian-origin
founders*

17. Value Creation at an unprecedented pace
Source: 3one4 Capital, Tracxn TV Mohandas Pai © 3one4 Capital

18. In 1H of 2021, 16 new startups have
emerged as Unicorns already,
more than in 2020
Source: ET, 3one4 Capital
1 1
2 2 2
3
2
8
11
12
16
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 May-21
Annual Unicorns Created in India
Value Creation at an unprecedented pace
TV Mohandas Pai © 3one4 Capital

19. 3x Valuation Growth by 2025
Source: 3one4 Capital Estimates, Tracxn, Inc42
Unicorns,
$180 B
Soonicorns,
$41.3 B
Minicorns,
$42.3 B
Startups,
$50.0 B
Unicorns,
$621.9 B
Soonicorns,
$114.2 B
Minicorns,
$132.6 B
Startups,
$100B
2021 2025
~$315B
~$1Tn
Value created by Indian Startups
TV Mohandas Pai © 3one4 Capital

20. Enterprise
Tech
16,000+ startups
~35% of all active
startups in India
608 deals
$5.4Bn Funding
(2014-2020)
Source: Inc42 – Indian Startup Funding Report TV Mohandas Pai © 3one4 Capital

21. TV Mohandas Pai © 3one4 Capital
Top New Age
Enterprise Tech
Companies

22. Source: Inc42 – Indian Startup Funding Report TV Mohandas Pai © 3one4 Capital
DeepTech
~28% of all deeptech
startups have been funded
11% is the industry average
700+ startups
$0.5Bn Funding
(2014-2018)

23. TV Mohandas Pai © 3one4 Capital
Top New Age
DeepTech
Companies

24. India growing as a deep-tech hub
Source(s): 256 Network Family Office Report
950+ AI
startups
480+ IOT
startups
80+ AR/VR
startups
30+ Robotics
startups
Personalises
content on
smartphone lock
screens
Personalised
financial solutions
company
IoT based
wearable
healthcare
monitoring device
Contactless health
tracker and at-home
step-down ICU
AR based ed-
tech player
for kids
VR powered
entertainment
Robot enabled
logistics
solutions
Service robots
for banks, malls,
events

25. Tech solutions are digitally-upskilling
millions of employees
Source(s): 256 Network Family Office Report
Delivery fleet
Zomato and
Swiggy employ
over 300K-500K
delivery
executives
between them
OlaCabs
Generating
livelihoods for
1.5M drivers
across 250 cities
Meesho has
enabled 10 million
entrepreneurs,
mostly women, to
create their own
professional
identity and grow
their businesses
Bringing jobs
beyond metro cities:
150+ funded start-
ups, are based out
of emerging start-up
hubs like
Ahmedabad, Jaipur,
Kolkata

26. Most Active Venture Capital Investors
Source: Yourstory TV Mohandas Pai © 3one4 Capital

27. We will go from data poor to data
rich nation by 2025!
Cashless, Paperless & Presence-less
Service Delivery
Digital
Identity
Paperless
Process
Commerce
Payment
Social
Machine
Intelligence &
Automation
TV Mohandas Pai © 3one4 Capital

28. leap in DATA: The Global Covid Fast Forward
Source: Nielsen TV Mohandas Pai © 3one4 Capital

29. Source: Bain, Finshots, UPI data as of May 2021
Steady Transition to a No-Cash future
2.53 Bn
Monthly UPI
transactions volume
US$ 67Bn
Monthly UPI
transaction value

30. Full Stack Digital Banking Services by
Neo Banks is the Future
Top Players Traditional Banks NBFCs Neo Banks
2010
2020
Diversified Housing Finance
Gold Loan
Consumer – SME & Vehicle
Diversified Housing Finance
Gold Loan Consumer – SME &
Vehicle
For SME For
Consumer
TV Mohandas Pai © 3one4 Capital

31. Source: We Are Social
Content consumption explodes through Covid19

32. Consumption proliferation
Rise of Jio
100,000,000 96,184,656
2021 Data Consumption per Subscriber was
13.7 GB per month with 325M Subscribers
2021 Data Consumption per Subscriber was
16.4 GB per month with 336M Subscribers
Source: Publicis, Vidooly, Company Annual Reports, Livemint
Content consumption explodes through Covid19

33. Online Gaming: Social distancing and lockdowns
transitioning sporting to the digital realm
Source: 256 Network & Praxis Family Office Report
Real money games –
Fantasy sports
Real money games - Others Casual games
E-sports
& Streaming
Players
COVID-19
impact
• Getting back on track à Sporting
activities were cancelled during
COVID, but traction is building fast
as sporting events (cricket) resume
under bubbles
• Pivotal role in fan engagement
when stadiums remain in full/partial
lockdown
• More time available à higher
participation à more organic
downloads
• Focus on user engagement
and retention à a wider
product offering for varying
consumer tastes
• Social distancing à adoption
of social games
• User growth was slightly
softened by lower ad revenues
• Introduction of new games to
cater to increased demand
• Disruption of outdoor sports à
increase in e-sports
viewership
• Social distancing à shift from
physical to virtual events and
competitions
• Time spent by each user
increased by 21% to 191
minutes
Market size (FY20)
~US$ 1.6B
Funding (2020)
~US$ 400M
Growth rate (FY20-24)
30-35%

34. Source: Business Of Apps, Data for 2020
Global India
India’s leading home-grown
gaming streaming app
More hours streamed watching esports
than Youtube & Facebook combined
TV Mohandas Pai © 3one4 Capital

35. Edtech: Indian edtechs fundamentally altered
education delivery in India
Source: 256 Network & Praxis Family Office Report
Market size (FY20)
~US$ 80B
Funding (2020)
~US$ 2.2B
Growth rate (FY20-24)
50-55%
Supplementary
education & tutoring
Test preparation
Out of school / extra-
curricular
Certification & training
platforms
Digital education tools
and enablers
Players
COVID-19
impact
• School closures à increase
in user adoption
• Partnerships with schools
à higher B2B growth
• Market leaders to benefit
the most à trust +
content variety
• Limited online schooling
hours à increased user
engagement time
• Physical to digital shift
with more preparation
times due to exam
delaysà increased
customer acquisition
• High stakes à content
quality key USP
• Focus on vernacular
modules
• Nascent stage
• Increased emphasis on
STEM in National
Education Policy to
enable growth
• Competition for student’s
time à Surge in adoption
to continue
• Job uncertainty + time
availability à increased
demand for upskilling
• More organic reach,
referrals, repeat usage
à lower CAC
• Increase in # customers
over a long period
• Acute need for online
enablers to tackle digital
learning due to shutting
down of physical
facilities
• Online enablers to remain
important post Covid due
to behavioral changes in
users

36. Health-tech: Growing need for deeper
healthcare infrastructure
E-pharmacy Telemedicine & scheduling Diagnostics and care Health and fitness
Players
COVID-19
impact
• Continued operations amidst
lockdowns
• Fear à panic buying + PPE demand
• Strengthening supply chain à
increased hiring
• 8.8M were using e-pharmacy
services during lockdown, 2.5x
growth from pre-COVID levels
• Fear of getting infected in
hospitals à People started
using telemedicine apps to
avoid hospital trips
• 500% increase in online doctor
consultations in May 2020 from
March 2020, with 80% users
experiencing it for the first time
• Increased demand for at-
home service both for
mandatory Covid testing for
travel and other outpatient
diagnostics
• New offerings à faster
testing & approvals for
essential services
• Fear of illness à better health
management
• Change in business models
àCurefit shifted focus from
outdoor to indoor fitness, started
monetizing free content
• Customer interest à
Consumers started taking their
health more seriously
Market size (FY20)
~US$ 1.6B
Funding (2020)
~US$ 410M
Growth rate (FY20-24)
30-40%
Source: 256 Network & Praxis Family Office Report

37. Source: Visual Capitalist
Aarogya Setu becomes world's fastest
app to reach 50M downloads.
Now at +110M users.
13 days
Number of years to 50Mn users
TV Mohandas Pai © 3one4 Capital

38. Development of a Bharat Health Stack to
serve as an open collaborative platform

39. E-groceries: Verticalized brands meeting
increasing quality and variety demands
B2C - Horizontals B2C – Verticals B2B
Players
COVID-19
impact
• Focus on procurement of essential SKUs in
the initial times
• Accessibility and convenience for the
consumers in early days à increased time
slots for deliveries
• Surge in demand à high digital adoption
• Surge in demand à high digital adoption
• Ensure seamless operations à hiring of
delivery partners
• Partnerships à strengthen supply chain
operations
• Surge in demand à higher ticket value
purchases by kirana shops
• Expansion of services across regions to
increase coverage
• Focus on procurement of goods à more
alliances with sellers
• Increase in # tie-ups with local kiranas
Market size (FY20)
~US$ 3.2B
Funding (2020)
~US$ 415M
Growth rate (FY20-24)
40-50%
Source: 256 Network & Praxis Family Office Report

40. eGrocery category is doing brisk
business during COVID
JioMart has the capability to become an
integrated retail platform by including
other products and services under its
umbrella
400K
Orders per day in Aug 2020
Source: RedSeer, News Reports

41. Machine-enhanced maps of urban clusters and hyper-
local commute optimizes deployment & utilization
Clean mobility options are now a reality in
India, incumbents see value in partnerships

42. Thank You
TV Mohandas Pai | 3one4 Capital
@TVMohandasPai | @3one4Capital