5 6199529792761496319

ANTIQUE STOCK BROKING LIMITED FROM THE RESEARCH DESK 15 September 2021 | 1
Antique Internet Post Conference Note

INDEX
Topics Page No
India Internet - Road Ahead is exciting 2
India: The Internet frontier of the World 3
Key segments for Internet companies
Fintech 13
Online Classifieds in India 16
Online recruitment Classifieds 17
Online Real Estate Classifieds 18
Online Matrimony Classifieds 19
Online Auto Classifieds 20
Ecommerce 21
Retail/Kirana Tech 23
Logistics Tech 25
Food Tech 27
EdTech 29
Online Travel & hospitality 31
Health-tech 33
Shared Mobility 35
Mobile Advertisement 37
Private Capital lining up for internet businesses - Raining unicorns 38
COMPANIES
Companies Sectors Page No Companies Sectors Page No
Razorpay Fintech - Payment/SME Lending 40 Matrimony* Platform - Matrimony 58
Namaste Credit Fintech - Lending 41 EaseMyTrip* Platform - OTA 59
Credit Wise Capital Fintech - Lending 42 Propstack and Zapkey Platform - Real Estate 60
InCred Fintech - Lending 43 Dhani Services Platform - Healthtech 61
GalaxyCard Fintech - Instant credit card 44 CollegeDoors EdTech 62
Kosh Fintech - Micro Finance 45 EduBrdige EdTech 63
Home First Finance* Fintech - Home Finance 46 Klassroom EdTech 64
Rupeek Fintech - Gold Finance 47 PepperFry E-commerce 65
Niyo Solution Fintech - Digital Banking 48 Grab Ecom Logistics 66
Bank of Baroda - Digital Head* Banking - Digital Banking 49 ShareChat Social Media 67
Expert: InsuranceTech Fintech/IT- Insurance 50 Quint Digital Media* Digital Media 68
Digit Insurance Fintech - Insuretech 51 Fleek Platform & Applications 69
Vitraya Technologies Fintech - Insuretech 52 HubHopper Largest Podcast Platform 70
Zerodha Fintech - Broking 53 RevOS EV - OS/Charging Infra 71
Share India Securities* Fintech - Broking 54 Redwing Labs DroneTech - Medical Drones 72
Escrowpay Fintech - Escrow payments 55 Vicara Motion/Gesture recognition 73
Kredent Infoedge Fintech – Edtech 56 Sonata Software* Software 74
Infoedge* Platform - Conglomerate 57 Mobitrail Software/AI 75
* Listed Companies
Prateek Kumar SECTOR REPORT

+91 22 4031 3440
prateek.kumar@antiquelimited.com
India Internet
Sohail Halai
+91 22 4031 3425 Road Ahead is exciting
sohail.halai@antiquelimited.com
Internet technologies and platforms have fundamentally changed the way
Saurabh Dugar businesses operate internally and interact with their stakeholders like
saurabh.dugar@antiquelimited.com
suppliers, customers, and competitors. Inline with global trends, India has
seen tremendous increase in the adoption of internet, technology and
transformative business models, as the old offline market is conceding to
mobile-centric internet businesses. With the advent of low-cost internet,
government's digital push and increasing smartphone penetration, India is
the leader in various metrics ranging from internet connections to app
downloads. Given that Covid-19 has only expedited consumers' adoption of
digital platforms, and that the unit economics is improving in certain
segments, investor's interest in these internet companies is at an all-time
high now. In that context, we hosted ~40 companies at our maiden Internet
Conference from diverse technology and internet platforms including Fintech,
Edtech, Ecommerce, Platforms and a few who are developing their own niche
in various diversified segments like Podcast, EV, Drones and Motion
Intelligence. The common theme which came out of the meetings was that
traditional business are evolving into new digital based models. In this report,
we also touch upon the various segments of Internet, which are witnessing
strong traction and participation from new age entrepreneurs.
India's Consumer Internet Market - On a roll
Over the past 5-7 years, with the evolution of internet, the way Indians eat, shop, commute or
pay has transformed. Technology has driven rapid adoption of the new age businesses,
financial inclusion of all on account of quicker and easier distribution of new age financial
services/products. Easy availability of smartphones, ease of consuming content on them,
cheap data and high-speed internet connections have all enabled Indians to embrace digital
apps. While larger corporates are taking strides towards going digital, the unorganized
participants in various sub-sectors have been shifting online as well, empowered by digitization
to reach customers and evolving consumer habits. First-time users have seen significant surge;
internet platforms are diversifying their use-cases to captivate more customers online.
Fintech - tremendous potential, primed for growth
Agility, innovations, one-stop shop and customized solutions that new players are bringing on
board has/will (1) accelerated digital adoption by traditional players, (2) expand customer
reach (financial inclusion), (3) bring cost efficiencies, (4) strengthen underwriting practices
and (5) reduce turnaround time and improve consumer experience. Thus inefficiencies would
get weeded out further and lazy banking would get further marginalized. We also understand
adoption of digital payments/merchants has clearly set the trend for the players to take a
more holistic view of the end user and under-penetration across financial services, especially
credit has become a key attraction to monetize the customer base. Further, steps by regulator
to establish account aggregators would make data accessibility more seamless and data
analytics would increasingly play a higher role. Segment is at a nascent stage and the space
would see new solutions, partnerships and evolving regulations, thus this could reshape the
course of Indian Financials industry.
Covid-19 accelerated the growth momentum for most online businesses - ripe for IPOs
COVID-19 has accelerated India's digital transformation as more consumers are now relying
on digital services - be it shopping online, digital payments, online health consultations, or
video conferencing - to fulfill their daily business and personal requirements. Newer segments
as well as newer players have emerged across various segments. Majority of the internet
businesses are positively impacted, as they have leapfrogged 1-3 years ahead in their business
cycle curve. As online platforms see more adoption and increase in new users, they are
clocking better unit economics. This is adding to their business stability and making them set
for an IPO. 2021 has witnessed various start-up IPOs, starting with Nazara Tech, followed by
Zomato (loss making) and CarTrade. Others who have filed for their IPO include Paytm, Ixigo,
Freshworks, Nykaa and others.
India: The Internet frontier of the World

India Consumer Internet Market - up for rapid growth
Over the past 5-7 years, with the evolution of internet, the way Indians eat, shop, commute or
pay has transformed. Technology has driven rapid adoption of the new age businesses,
financial inclusion of all on account of quicker and easier distribution of new age financial
services/products. Easy availability of smartphones, ease of consuming content on them,
cheap data and high-speed internet connections have all enabled Indians to embrace digital
apps. The unorganized participants in various sub-sectors have been shifting online,
empowered by digitization to reach customers and evolving consumer habits. First-time users
have seen significant surge; internet platforms are diversifying their use-cases to captivate
more customers online. The pandemic has further accelerated such consumer behaviour and
buying patterns. As per Redseer, India's Consumer Internet Market is primed to grow from
USD60-70bn in 2020 to USD230-270bn by 2025.
India Consumer Internet Market - primed for 30% CAGR over 2020-2025
300
200
100
0
2020E
2021P
2025P
2016
2019
India Consumer Internet Market (USD Bn)
Source: Redseer, Industry, Antique

#In 2020, Travel, Stay, Mobility were worst impacted segments due to Covid, while segments like E-tailing, EdTech, E-Health grew aggressively
India could have 1bn Internet users by 2025, up from 650-700mn in 2020, smart phone
users may grow to 800-850mn by 2025
Source: Redseer, CarTrade RHP

Data cost in India has fallen multifold over the past 5 years due to advent of Reliance Jio.
With the advent of low-cost internet and increasing smartphone penetration, India is the
leader in various metrics ranging from internet connections to app downloads.
Internet is Omnipresent
Source: Industry, Antique
Online players gaining market share

A large section of the Indian economy is still in the unorganised sector, dominated by offline
players across various industry segments. However, with tremendous increase in the adoption
of internet, technology and transformative business models, the old offline market is conceding
to mobile-centric internet businesses. A high proportion of the growth in active internet users is
coming from the first-time users in Tier 2+ cities and rural areas. Some of these online businesses
have large addressable markets, while for others consumer base is limited. Businesses like e-
commerce, fintech, social media have a broad consumer base, across urban and rural
markets. However, sectors such as mobility, travel and hospitality, food delivery, education,
entertainment (OTT) have comparatively lower consumer bases; these sectors have higher
presence in urban areas and limited presence in rural areas.
Traditional Economy/business Digital Economy

Cash-Cheque payments E-payments, Google ranking, Social Media Reviews,
Newspaper Ads E-learning, Automation, Tele-consulting,
High Street Shops, Kirana shopping Online entertainment, Kirana Tech
School/textbooks
Covid-19 accelerated the growth momentum for most online businesses

While the internet businesses were gaining gradual traction in general, the pandemic has
catapulted them to limelight. COVID-19 has accelerated India's digital transformation as
more consumers are now relying on digital services - be it shopping online, digital payments,
online health consultations, or video conferencing - to fulfill their business or personal needs.
Newer segments as well as newer players have emerged across segments. Majority internet
businesses are positively impacted, as they have leapfrogged 1-3 years ahead in their business
cycle curve. As online platforms see more adoption and increase in new users, they are
clocking better unit economics. This is adding on to the business stability and making them set
for IPO.
E-commerce business tractions have increased exponentially as people are preferring to

buy most things online ranging from grocery, clothes, electronics items etc. This has trickled
down to other tech segments like 1) higher e-commerce sales have increased business for
tech logistics companies 2) surge in online payments have positively impacted the fintech
companies. Other emerging trends
n Business for online entertainment companies (Netflix, Amazon Prime) has increased
as there are limited modes of outdoor entertainment available in the current scenario.
n Average order value in Online Food delivery has increased which has made the unit
economics attractive for the food tech companies
n As schools, colleges are closed/partly open, students/professionals have accepted online
mode of education like never before for learning/upskilling thus boosting the Edtech
sector
n With significant increase in time spend on mobile phone (or internet) over the past year,
digital advertisement has gone through the roof as well;
n Increase in digitization of activities like commerce and business transactions has resulted
in a surge in demand for Communications-Platform-as-a-Service, or CPaaS.
n Covid-19 has forced businesses to make huge investments in digital infrastructure, furthering
the influence of companies providing Software-as-a-service, or SaaS.
However, there are internet companies at the other end of the spectrum which had to bear the
brunt of Covid related restrictions on movement, but these businesses have now bounced
back swiftly. Some of the internet businesses which were adversely impacted were: 1) Shared
mobility businesses (Ola, Uber); 2) Travel and hospitality industry (due to lesser domestic and
international travel); 3) Real estate business which affected business for real estate classified
apps and 4) job portals which were impacted by general economic slowdown last year.
Notably, some of these businesses are also seeing fast recovery or have crossed pre-Covid
levels now.
Sectoral Impact due to Covid in the short run

Positive Negative Neutral
E-commerce Mobility Matrimony
Fintech Travel & hospitality Job Portals
Healthtech Real Estate
Online Entertainment
Food Tech
Mobile advertisement
Online Education
Tech Logistics
CPaaS & SaaS
Statistics on global Internet trends - Increases in digital adoption seen globally since
start of COVID-19: Report by Datareportal (Jul-21)
n 4.8bn people around the world used internet in July 2021 - that's almost 61% of
world's population.
n Globally, internet users are growing at 5%+; YoY growth much higher in many
developing economies
n Average global internet user spends almost 7 hours online each day.
n More than two-thirds of the world has a mobile phone, with smartphones accounting
for almost 4 in 5 of all the mobile handsets in use today.
n Most internet users (92.1%) use mobile devices to go online for some time in a day.
Roughly two-thirds of internet users in the world's larger economies go online via
laptops and desktops for at least some of their connected activities.
n Social media use continues to grow too, with global users reaching 4.48bn in July
2021, nearly 57% of population. Globally, social media users are growing at a rate
of 13.1%, with the average social media user visiting or using 6.6 different social
platforms every month. Average global user spends 2 hours 24 minutes on social
media each day.
n More than half of all internet users aged 16 to 64 visit online retail stores every
week.
n 4 in 10 of the world's working-age internet users buy something online each week,
with more people now making purchases via mobile devices than via desktop and
laptop computers.
Ericsson: Mobility Report for June-2021 (Comments on India)

Average monthly mobile data usage per smartphone continues to show robust growth,
boosted by people increasing their smartphone usage while staying at home. The
reliance of people on their mobile networks to stay connected as well as
work from home has contributed to the average traffic per smartphone
user increasing from 13GB per month in 2019 to 14.6GB per month in
2020. The average traffic per smartphone in the India region stands second-highest
globally and is projected to grow to around 40GB per month in 2026. Competitive
pricing by service providers for subscription packages, affordable smartphones and
increased time spent online all contribute to monthly usage growth in the region.
Total mobile data traffic in India has grown from 6.9EB per month to 9.5EB per month in
2020 and is projected to increase by more than 4 times to reach 41EB per month in
2026. This is driven by two factors: high growth in the number of smartphone users,
including growth in rural areas, and an increase in average usage per smartphone. An
additional 430 million smartphone subscriptions are expected in India during the forecast
period, taking the total to over 1.2 billion in 2026.
Data traffic per smartphone

Forecast CAGR*
2019 2020 2026 2020-2026 Unit
North America 8.4 11.1 48 27% GB/month
Latin America 3.9 5.9 30 31% GB/month
Western Europe 7.3 11 47 28% GB/month
Central and Eastern Europe 5.1 7.2 29 26% GB/month
North East Asia 7.8 10.9 39 24% GB/month
China 7.8 11 38 23% GB/month
South East Asia and Oceania 4.3 6.2 39 36% GB/month
India, Nepal and Bhtan 13 14.6 40 18% GB/month
Middle East and North Africa 4.4 6.5 32 30% GB/month
GCC 14 18.4 42 15% GB/month
Sub-Saharan Africa 1.6 2.2 9 26% GB/month
Source: Ericsson Mobile Report | June 2021
New Internet based business Models at fore

Internet technologies and platforms have fundamentally changed the way businesses operate
internally and interact with their stakeholders like suppliers, customers, and competitors. Bringing
convenience, internet has changed the lives of people in many ways. These platforms and
new age models make it simpler for businesses, people, and machines to interact instantly
and continuously. Automation helps increase productivity, identify, and analyze inefficiencies
and enable customization of products and services. This eliminates or reduces the need of
intermediaries, trim inefficiencies and enable faster working, transactions, and sharing of
information.
Internet business models fall under categories like business-to-consumer, business-to-business
and consumer-to-consumer. As the Internet sector is still at a nascent stage of growth, most
companies in the space are loss making, even as unit economics have improved for some in
the past year. Given the strong growth opportunity in the space and availability of private
capital, the competition intensity has remained high for players to maintain the leadership
positions. To outdo the competition, companies allocate aggressively on ad and discount
budgets to attract and retain customers. The rapid rise of startups and entrepreneurial culture
in the space suggests that it is easier to start an online business than an offline brick and
mortar business. A new internet-based business idea is less capital intensive, the barrier to
entry far lower, and the return on investment can be unparalleled if scale is achieved.
Key revenue model for internet companies

Sector Major Revenue model Few examples of Companies
1) E-Commerce (B2B & B2C) Subscription, feature listing, commission Amazon, Flipkart, Indiamart, JDMart, Moglix, Udaan
2) Online Matrimony Subscription, feature listing Matrimony, Jeevansathi, Shaadi
3) Online Recruitment classifieds Subscription, feature listing, Ads Naukri, Monster, Indeed
4) Online Real Estate classifieds Subscription, feature listing, Ads 99acres, Magicbricks, NoBroker
5) Online Auto Classifieds Subscription, feature listing, Ads CarDekho, Carwale, Cars24, Spinny
6) Fintech
a) Lending Interest Income, Fees Incred, LendingKart, Rupeek, MobiKwik
b) Payments Transaction led fees, feature listing, Ads Paytm, Razorpay, PineLabs, Instamojo
c) Broking/Wealth management Subscription, Transaction led fees Zerodha, Upstox, Angel Broking, Groww
d) NeoBanking Transaction led fees Freo, Niyo, Jupiter
e) Insurance Premium Digit, Policybazaar, Acko
7) Healthtech
a) Fitness/Consultation Subscription Cure.fit, PharmEasy
b) E-pharmacy Commission, Delivery PharmEasy, Netmeds, 1mg, Dhani
8) Mobile advertisement Advertising Affle, InMobi
9) EdTech Subscription, services Byju's, Unacademy, Vedantu, Toppr
10) Tech logistics Delivery Delhivery, Rivigo, EcomExpress
11) Mobility Commission Ola, Uber
12) Travel & Hospitality Transaction, advertising MMT, EaseMyTrip, Ixigo, Oyo
13) Foodtech Commission, Subscription, Delivery, Ads Zomato, Swiggy
14) Online Entertainment
a) Gaming, Music, Podcast Subscription, Freemium, Ads Nazara, Spotify, Hubhopper
b) Video Subscription, Ads Netflix, Disney + Hotstar
15) Kirana Tech Commission, License Fees Dukaan, Jumbotail, Udaan, OkCredit
16) CPaaS, SaaS Commission, License Fees Route, Tanla
Subscriptions / Membership Fees

In the subscription model, users pay subscription fee to avail the services. Users might be
allowed to have a free/ trial period in the beginning before one starts paying a recurring fee
to continue using the service. A subscription can be for 1-month, 3-months, 6-months, 1-year
etc. Payment is typically done in advance. Quality of service is often important in this model.
If users are not satisfied, then they will not renew the service next time. Key examples in the
segment include
n Subscribing for Zomato Pro for better offers on restaurants
n Subscription to OTT platforms (Netflix, Disney + Hotstar, Amazon Prime) to watch premium
content
n Subscription to Indiamart to increase product visibility or to get access to RFQs.
n Subscribing to the Matrimony website that connects two people who want to marry
Subscription packages of Indiamart Subscription packages on BharatMatrimony
Source: Indiamart Source: BharatMatrimony
Advertising
Advertising is the most popular form of revenue for several internet companies. Advertising
income is earned by businesses by displaying paid advertisements on their websites, social
media channels, or other platforms surrounding their internet-based content. These could be
in multiple forms such as banner ads that appear in some part of the screen without ruining
the user experience. Normally, in the initial years, for internet companies to charge subscription
fees or other charges is difficult, so they try to earn revenue from providing space for
advertisement. This Internet business model relies on quantum of traffic on the website.
Revenue could be on the basis of click, impression or converted user. Depending upon the
platform, different types of ads such as display, search, text, and video/audio are displayed.
Advertising is the major source of income for social media companies such as Facebook, LinkedIn,
and Twitter etc.; their idea is to create a big community for social networking by providing free
access to app, collect data about the user and show the targeted ads to the user.
Samsung ad displayed while accessing ET Ad on Facebook Page
Source: Industry, Antique Source: Industry, Antique

Freemium
Freemium business model, a combination of "free" and "premium", has gained prominence
among internet start-ups and smartphone app developers. In a Freemium model, users can
access the basic features of the software, game, or service for free but will have to pay to
access premium feature or to improve the experience. The idea behind the freemium model
is that the core offering is free, but after the user gets hooked, service provider offers paid
value-added features. Basic features are free of cost, while the premium features are charged.
Some examples in the segment include:
n In Mini Militia (gaming app), you spend money to buy coins to upgrade your rifle. Or
you spend money to buy chips in Teen Patti gaming app.
n Paying for using premium services of Linkedin, Truecaller, etc.
To buy coins user needs to spend money in Option of in app purchase in WCC games for advanced
Mini Militiia (gaming app) character customization
Source: Mini Miltia Source: WCC
Feature Listing Fees

The Feature Listing marketplace business model is common with the classified ads. In the
featured listings model, marketplace charge a fee from sellers/service providers when they
post new listings; sellers buy advertising space to enhance visibility on the platform. Sellers
pay to have a featured listing higher than others or be at the top of a certain category - thus
trying to gain a competitive edge. While the basic listing on the marketplace could typically
be free, but sellers can pay to have their listing be featured/attract more eyeballs, or at the
top of a certain category. Key examples in the segment include
n Listing fees paid in Just Dial to increase visibility of the product.
n Listing fees paid in Myntra to show the product in upper order for relevant search.
JustDial Indiamart Myntra CarWale

Commission/Service Charge Model

In the commission model, a user is charged a fee for each transaction. User pays only when
the service is used, and marketplace is able to monetize every time a user pays for a service
or a product. When the customer pays the supplier, the marketplace charges a percentage
or a fixed fee for its services. The platform may charge either the seller or the buyer or both.
Commission percentage/value may differ on the basis of the product or the service provided.
Setting the commission percentage is always an issue in this model. Key examples in the
segment include
n Ola/Uber charges commission on ride fares
n Airbnb/Oyo charge commission on every booking done through the channel
n Amazon charges commission on the sales amount to the vendor.
n Zomato charges commission to the restaurants on Food Orders
Source: Industry Source: Industry
Transaction fee model

In this model, company earns revenue, by charging transaction fee on the total amount of the
transaction. However, as the payments model is regulated different instruments/rails would
attract different rates e.g. credit cards may have a MDR of 1.5-2%, while UPI is free for
consumers and small businesses. The company earns largely from merchants as platform
provides holistic payment solutions to them which gives an option to consumer to pay by
various payment mode (convenience), thus helps merchants to scale-up their operations.
However sometimes end consumer would also be charged. The platform facilitates the payment
and charges either a percentage or a flat fee. Transaction fee is charged for executing the
online transfer of money. Key examples in the segment include.
n Paytm charges fee for adding money in the wallet
n Credit card Companies charge transaction/convenience fee for online payments

On demand Delivery Model

Marketplaces levy delivery charges to the customers for delivery of products. However, many
brands in ecommerce space start out by offering free shipping across the board. Other
model to leverage concept of free shipping is by offering a threshold order value above
which they qualify to receive free shipping. In another model, on-demand delivery companies
also offer to make an unlimited number of deliveries for a fixed monthly price.
For the logistic companies, the distance travelled, weight of the shipment, nature of the product
and delivery time taken are the key parameters governing the quantum of the delivery charge.
FoodTech companies like Zomato also levy delivery charges for the food delivery at home
now; these charges are decided on the basis of restaurant partner/store, order value, distance
and time of the day. Key examples in the segment include
n Zomato: charges for food delivery
n Delhivery: charges for delivery of the product from one place to another.
Taxes & charges

Delivery Charge INR 31
Distance Fee INR 25
Surge Fee INR 25
All of the above charges go towards paying your delivery Walet
Restaurant Packaging Charges INR 15

Taxes INR 12
Total INR 108

Key segments for Internet companies

u Fintech
u Online Classifieds - Platforms
u Online Recruitment Classifieds
u Online Real Estate Classifieds
u Online Matrimony Classifieds
u Online Auto Classifieds
u Ecommerce
u Retail/Kirana Tech
u Logistics Tech
u Food Tech
u EdTech
u Online Travel & hospitality
u Health-tech
u Shared Mobility
Fintech
India is a financially under-penetrated country, with household debt to GDP of 11%, insurance
premium as a percentage of GDP of 3.8%, retail stock market penetration of 3% and only
20% of SME financing need being served. This is despite last three decades have seen major
developments, (1) 1990s - opening up of banking license to private players, (2) 2000s -
private insurers were allowed and private banks got stronger - catalyst for retail lending,
emergence of lending data warehouses (CIBIL) and (3) 2010-20 - NBFCs flourished, RBI
issued differentiated banking licenses (payments bank, small finance banks), economy
formalized and there was financial inclusion (GST, Jan Dhan Yojna), payments system evolved
with rapid rise in digital payments (USD20tn, CAGR of 1%+ over FY18-21 by value but
45%+ by volume), and use of alternate data improved for reaching customers profitably.
This decade is likely to be one of the most exciting phases and can be an inflection point in
India's financial services segment as
n Digitalization of customers and merchants opens up new possibilities for players to provide
financial services. Adoption of digital payments which accelerated by 1% CAGR in
value but 45% CAGR in value over FY18-21, imply high use cases and could provide a
host of insights in spending behavior/need of a consumer and cash-flow of merchants
which otherwise would have been tough to estimate based on document filings. Thus this
expands the pie of serviceable. Estimates by REDSEERS peg digital payments volume
and value CAGR to expand by 30% and 17% respectively over FY21-26.
n Technology and carry forward of innovation to capture alternate data increases consumer
convenience and enables players to provide customized solutions, improve customer
appraisal, reduce turnaround time and better the underwriting processes.
n Existing players of which few payment companies already have a robust customer base
(Paytm 333mn consumers and 20mn+ merchants, PhonePe 300 mn consumers and 20mn
merchants) and recently they have made their intent clear to aggressively push financial
services offerings as they are on their journey to monetize their captured customer base
ecosystem.
n New entrants may bring new solutions viz. new platforms start-ups are bringing customized
solutions and increasing availability of credit and disrupting traditional business models.
For e.g. (a) Namaste credit - its platform increases the chances of SME receiving credit by
6x, (b) Kosh is redefining micro-finance the digital way, (c) BNPL provides an alternative
to credit card especially for customers who are currently outside the formal credit
architecture. Redseers estimates credit based online payments to grow 6x from USD 10-
15bn to USD70-80bn and BNPL could increase by 15x to USD45-50bn market by
FY26e as compared to USD3-3.5bn in FY21 (d) Vitraya technologies aims to reach 25%
market share in claim settlement process.
p In future, RBI may open up digital banking license and some of the consumer facing
platforms outside financial services system may also play a role in expanding credit
deliveries e.g. Zomato can help chain of hotels that are registered on its platform to
scale-up by providing funding in partnerships with financial companies/ or otherwise
for marketing, working capital financing.
n Step-up on use of technology/upgrades by traditional banks/players to stay relevant.
We think, as these developments play-out, current decade will have a snowball effect on
pace of financial penetration/inclusion. Established players would continue to be major
players in the near term, especially banks in context of deposit creation and lending and we
expect a lot of partnerships to emerge. Newer solutions such as BNPL, SME financing by
leveraging huge merchant base, would have crossed proof of concept stage and some
regulatory oversight would develop. This would only intensify competitive landscape and
with time, new financial system would emerge and may get divided in to have (strong) and
have not (marginalized) players.
Players in the hood

n Traditional players: Banks/current players are investing to upgrade their technology and
digital offerings. HDFCB, ICICIBC, Bajaj Finance, ICICI-Securities.
n Payments companies: In phase of monetization their current customer base. Razorpay,
Paytm, Mobikwik, PhonePe, Amazon Pay
n Platforms/ lenders: Improving turn-around time and better credit appraisal. PaisaBazaar,
Namaste credit, Rupeek, Credit-wise, Zerodha, Upstox, Groww.
Indian landscape is financially under-penetrated measured across various lines

Global Penetration landscape
160 145
140
120
100 87 83
75 75
80 60 66
57 55 55 55
60 49
38
40 16 19 21
11 11 13
20 4 4 11 4 3
0
Internet Smartphone Retail MF Retail credit Household Insurance Credit card Stock
penetration penetration AUM as % penetration dept as % premium as penetration market
(%) (%) of GDP (%) of GDP % of GDP (%) penetration
(%)
India US China
Source: Paytm DRHP, Mobikwik DRHP, Internet, Antique
Phenomenal rise in digital payments to give strong insights

on consumer spending behavior New credit solutions estimated to have a phenomenal rise
200 Digital payments BNPL Market size (USD bn)
150-200
180 50 45-50
160
45
140 40
120
35
100
30
80
25
60 43 40-50
20
40 20 15
20
10
0 3-3.5
5
FY21 FY26
0
Value (USD trn) Volume (bn) FY21 FY26E
Source: Paytm DRHP, Mobikwik DRHP, Antique Source: Paytm DRHP, Mobikwik DRHP, Antique
Consumer and merchant base of payments companies

has blossomed Zerodha has seen a phenomenal rise in user base
300 25 Customer base ('000)
21 4,000 3,602
250 20
3,500
200 16
15 3,000
150 2,500
11
10
100 2,000 1,580
50 5 1,500
64 125 83 200 101 280 1,000
0 0 560
FY19 FY20 FY21 500 62
Total Mobikw ik users (mn) -
PhonePe Users (mn) FY18 FY21
Total Paytm merchants (mn,RHS) Zerodha ICICI Securities
Source: REDSEER, Antique Source: Antique
Fintech landscape features prominent players eyeing disruption
Source: Antique
Online Classifieds in India

Classified Ads, once a stronghold of print media, are now well entrenched into Internet
medium. Online classified Industry has rapidly grown in India (in line with rising Internet
trends) with the new age business models, technology advancement and rapidly evolving
consumer behaviour. According to the CRISIL Report, over FY16-20, the online classifieds
industry posted a strong CAGR of 22% to reach ~INR64bn. The COVID-19 crisis, however, hit
the growth in FY21. However, the industry is expected to clock a CAGR of 16-20% between
FY20-23 to reach INR100-110bn.
Key growth drivers in the segment
n Low-cost mobile handsets and increasing smartphone penetration
n Favourable demographics
n Affordable 4G connection
n Govt's Digital India initiatives
n Innovative business model offering anything and everything
Online classifieds industry can be broadly categorized into horizontal and vertical businesses.
While horizontal classifieds offer a range of products, vertical classifieds target niche markets.
These business models earn via subscription revenues, paid listing or via advertisements. The
horizontal classifieds model offers listing across range of services from various verticals and can
be further classified as B2B, B2C and C2C. Sellers of goods and services could be businesses
or individuals. In B2B, online portals offer sale of goods or services from business to business.
B2C business covers the listing of goods and service providers across consumer requirements.
The C2C business portals help individuals to list and sell/buy goods as well as services.
The vertical model focuses on listing of a single major product or service category. Within the
vertical online classifieds, online recruitment and matrimony are comparatively matured and
these verticals are dominated by 2-3 players which command more than 90% of the market
share; with formidable share of incumbents, entry of new players is difficult. Automotive and
real estate segments have grown strong over the past few years to establish their mark in the
vertical segment; notably, automotive and real estate classified businesses also compete with
horizontal players.
Classification of the online classifies industry in India
Source: Infoedge QIP Document, Crisil

Online recruitment classifieds

Indian recruitment industry has evolved in the last two decades with a major shift towards the
online medium. The use of technology, algorithms make it convenient for jobseekers and
recruiters to filter out their options as per their goals and requirement, thereby making the
experience more convenient. Further, value added services offered by various job boards
such as resume building, interview preparation, upskilling through learning, etc, make online
recruitment rewarding for jobseekers. According to the CRISIL Report, the Indian recruitment
industry was valued at ~INR11.5-12.5bn FY20. The industry has maintained a strong growth
momentum of 10-12% CAGR since FY16, driven by IT and ITES hiring (accounting for over
60% of the revenue of online job boards). In FY21, the industry saw a decline owing to
reduced jobs caused due to the pandemic. However, higher online traffic on job boards
amidst the nationwide lockdown as well as the economy coming back on track in the second
half of FY21 cushioned the blow. Infoedge's Naukri has seen a strong recovery in billing in
past 2 quarters.
Key growth drivers
n Higher mobile internet penetration
n Improving services from online job portals. Innovative offerings like online candidate
assessment, end-to-end recruitment services, mobile based solutions, improving convenience
and user experience for recruiters. Similarly, there are value-added services such as
resume building, interview preparation, upskilling options, etc, to boost jobseeker
confidence in online job board.
n New industries looking to recruit online: Increasing acceptance of online recruitment in
pharmaceuticals and chemical industries will provide fillip to the online recruitment industry.
n Entry of online portals in the blue-collar job segment to drive future growth in space
Company Operating segments

Naukri.com Naukri.com is the flagship brand of InfoEdge with dominant market share in online
recruitment segment. It operates other segments focused platforms like firstnaukri for
hiring freshers; it acquired Highorbit Careers (www.iimjobs.com and www.hirist.com)
in May'19, which provides management and engineering jobs /profiles. JobHai is a
new business line with focus on hiring grey and blue-collar employees. It recently
acquired HR SaaS startup Zwayam Digital to further consolidate position in the segment.
Monster.com Monster is a global online employment solution for Job seekers and employers, in this
segment for ~25 years. Quess Corp acquired Monster's operations in India, West Asia
and Southeast Asia in early 2018, marking its entry into online recruitment space.
Quess Corp is engaged in the business of workforce management solution, which it
offers to global and local clients in the region.
Shine.com Shine.com was launched in 2008 and offers recruitment, upskilling and branding
solutions. It is owned by HT Media. Shine.com also has Shine Learning (introduced in
2011) - career skills site for working professionals. This section involves features by
experts about various aspects of career building. Shine learning also serves as a
market-place for e-learning courses in India with 500+ courses by various partners.
Indeed.com Indeed.com is an American job search engine launched in November-04. In 2012,
Indeed was acquired by Recruit Co. Ltd, a leading provider of integrated HR and
information services based in Japan. Indeed's Indian subsidiary provides recruitment
solutions for recruiters as well as jobseekers in India.
Online Real Estate Classifieds

Real estate classifieds bring together property seekers and sellers in the real estate industry.
Real estate market has been impacted by various crisis over the last few years - demonetisation,
RERA, GST, the NBFC crisis and now COVID-19. As a result, the real estate advertising
market has shrunk significantly over the last few years. But since online classifieds captured
only a small portion of it, the segment of online classifieds has continued to see traction, with
builders, brokers and owners transferring more of their spend to online medium. The online
portals are also currently the only way to advertise resale and rental properties. COVID and
the new WFH trend has also resulted into major churn in both the residential and commercial
real estate sectors on both the buying and renting side with many businesses and individuals
wanting to rethink on the space requirement for offices/homes.
Product evolution on the platforms to drive discovery
Strong network effect on these platforms: Get most real estate listings, secure the most traffic,
get the most responses, generate more clients, which in turn takes the site to a higher level of
listings. Real estate search-research-transact journey that buyers take is non-linear, with multiple
online to offline transitions. More and more searchers are now beginning their real estate
search online and accessing much more information than just location and price. Companies
in the real estate classifieds segment have constantly assessed, improved and upgraded to
keep pace with the latest online realty needs. There has been focus on providing more
personalised and enhanced customer experience through better discovery. To showcase new
homes better, enhanced display mechanisms including differentiated content, project videos,
floor plans, quality brochures and accurate prices have been introduced. Machine Learning
based Algorithms have been introduced to improve recommendations across the site.
Shift to online mode for advertising
Over past few years, even though the total spend by the real estate industry on advertising
has remained same or in some cases declined, the online real estate classifieds industry in
India have grown at a healthy pace. Builders spend a lot of money on advertising new
homes and projects. Large part of this is currently allocated to newspapers, but the underlying
belief of Industry is that real estate print advertising will move online - boosting Ad revenues
for Online classifieds.

99acres 99acres.com is a leading real estate online classifieds portal under Info Edge (India)
Ltd primarily catering to the residential segment. Company also plans to revamp rental
and commercial real estate offering as well. Company has also invested in a real
estate analytics and intelligence company called TEAL which aims to provide historical
real estate transaction data and title checks online
Magicbricks Magicbricks is a subsidiary of Times Internet Ltd and provides real estate property
listings. Users have access to services like the news section of Magicbricks "Property
Pulse". Magicbricks Propindex is a research publication to provide insights of real
estate market.
Housing.com Housing.com is a real estate property listing portal. Housing.com was acquired by
Elara Technologies Pte Ltd (Singapore) in 2017. Elara Technologies is a full stack real
estate services company which houses a range of platforms like Housing, Proptiger and
Makaan.
NoBroker NoBroker is a real-estate platform that makes it possible to buy/sell/rent a house
without paying any brokerage. It has also expanded to buy/sell of commercial proper-
ties. It claims of providing for paperwork and documentation process related to home
purchase. In 2018, it launched NoBrokerHood app with view of making societies tech-
enabled.
Online Matrimony Classifieds

It is estimated that normally ~100mn of the people are unmarried in India at any point of the
time and on an average, ~10-12mn weddings take place in India every year, of which 80%
are arranged marriages. Still, majority of the people do not use wedding application such as
Matrimony and depend upon classified advertisements, offline marriage bureaus and word
of mouth referrals of family and friends. Online match making industry is small proportion (at
8-10% of marriages now vs. ~6% of marriages 5 years back) of the total marriages happening
in India, as per Industry estimates. While the dating apps are gaining traction, arranged
marriages are still the norm in India.
Increasing digital penetration - multiyear growth driver for the underpenetrated Industry
segment
Marriage matchmaking is a highly fragmented market in terms of regions within India and
communities. There are several players present in the market with over 1,500 websites in
India (as per media reports). However, with the plethora of offerings, there are several issues
relating to the quality of data posted, support services offered, match-making algorithms,
issues related online cheating etc. Consequently, only a few of these platforms have managed
to garner significant customer confidence i.e. Matrimony, Jeevansathi and
Shaadi.com. With increasing internet and smartphone penetration in India, the domestic
online matrimony classifieds industry could deliver a healthy growth rate over medium to long
term. Industry expects to clock a healthy mid-teens CAGR in medium term to soon grow into
~INR10bn in terms of market size. With increased digital adoption, innovative ideas of the
platforms, online match making industry is expected to gain market share out of the total
marriage happening in the country.
Product innovation driving user engagement
Companies continue to innovate and recalibrate their offerings to onboard customers, deepen
the penetration, improve platform's matchmaking capability and increase monetization.
Different packages are designed to meet the customer needs and budget. During Covid, the
new features on the platforms like online verification, video-calling, video-profiling, Milan
Samaroh, safety feature like "Who can see me" and video based online meet-ups helped
drive user engagements on the portals. Companies focus to build trust in the platform through
product innovations and marketing communication; make the platform work for both the
prospects as well as their parents - offering each set a more personalized experience; and
offering more product features and services to the user base which can help them in their
search for a good match.
3-player market - relentless competition
With only 3 key players, competition intensity remains relentless in this business segment.
While consolidation is much desired, but unlikely in near term, given the stance suggested by
the players. Matrimony.com is a market leader in the India with ~60% market share; company
is dominating the Southern market with 90% market share while West and North market are
more competitive with higher presence for Jeevansaathi and Shaadi. Matrimony Companies,
being a consumer-focused internet brands, spend aggressively on marketing for future growth
and enhance brand visibility. Infoedge continues to maintain an aggressive stance on marketing
spends towards Jeevansathi. We believe marketing spends are expected to remain elevated
in the business, however the impact on margins could moderate with the expected improvement
in billing growth (and Oplev) for the Companies.
Online Auto Classifieds

The way consumers purchase cars is changing, with consumers placing much higher
importance on online and digital channels. Technological progress in terms of search engine
optimization, online video or education and touchpoints for leads through the digital channel
(websites) have become critical. Portals' provide features include used car price information,
on road dealer prices and expert reviews that help buyers and sellers to choose suitable
vehicles. Additionally, some of the portals also provide information related to the automobile
industry and the latest automotive news, including reviews of upcoming models in the market.
Online vehicle buying and selling offers several benefits over offline channels, such as:
n For consumers: Improved customer experience through the availability of a variety of
options, data transparency, price discovery, aggregation of inventory for easier vehicle
discovery, intuitive search results, fast purchasing, comparison tools, greater convenience,
easy access to auto finance options, ease-of-use and time effectiveness
n For dealers: Improved efficiency through inexpensive customer acquisition, ability to reach
a wider audience, ability to target potential purchasers more accurately, improved inventory
sourcing, effective trade-in execution, efficient floor space usage, availability of vehicle
financing and improvement with respect to the determination of an optimal pricing strategy
n For OEMs: Better reach to a large and engaged audience; more inquiries from and sales to
in-market buyers and sellers and access to consumers and dealers. (Source: CarTrade RHP)
Network effect: More listings and more transactions on platform lead to better brand
awareness. As more consumers utilize consumer platforms, the incremental information added
to database and algorithm increases utility of data and analytics platforms for all participants
and enables to offer superior customer experiences. All of these helps to attract and retain
more automobile customers at various points of the vehicle buying and selling process, creating
network effects which in turn increases the stickiness of automotive dealers, OEMs, financial
institutions, fleet owners and other stakeholders to platforms.
Long term growth drivers for Automotive Portal
n Digital journey transformation of customers from pre-purchase browsing and
researching, to pricing comparison, dealer discovery, financing options, value-added
services discovery and purchase.
n Digital transformation of dealers' journey; Dealers have started using them for
services such as listings, sourcing vehicles, leads generation, pricing comparisons,
transactions, auctions etc.
n Digital media spend: Overall online media spend is increasing for automobile OEMs
as well as for dealers. Automotive portals are well-positioned to tap this growing market
by being present across various sources such as videos, search engines, websites and
review sites.
n Auto finance: There is a need to fill the gap in financing of vehicles, especially of used
vehicles
n Auctions / remarketing: Customers rely on auction facilitators to sell their inventory
to consumers, individual and fleet operators, dealers and wholesale buyers.
n Value-added services such as accessories, automotive insurance and auto finance
allow automotive portals to diversify their revenue streams. Automotive portals also offer
inspections and evaluations to cater to the used car auto loan financing industry, and to
secondary market for insurance renewals.
Competitive Landscape
Key competitors include automobile portals include independent used and new vehicle dealers,
branded vehicle dealerships, other online dealers of new and used vehicles, websites and
apps for the publication of classified advertisements, and car leasing companies, which directly
sell used cars from their fleets to consumers and dealers. There are a bunch of online marketplaces
for used automobile, which include brands such as Carwale (CarTrade), Cars24 (Cars24
Services Pvt Ltd), CarDekho and BikeDekho (Girnar Software Pvt Ltd), Droom
(Droom Technology Pvt Ltd), Spinny (Valuedrive Drive Technologies), Mahindra
First Choice Wheels Limited. Among others are Quikr, Olx etc.
Ecommerce
Covid-led lockdowns impacted the overall consumer spending, while this was partially offset
by a rise in online spending by consumers. Pandemic has accelerated the e-commerce industry
in India by many years, revolutionizing the way brands operate, run, and grow their businesses,
as well as how consumers choose to shop and pay. E-commerce players are consistently
evolving and transforming their operating models (by bringing multiple segments, payment
options) to cater to rapidly changing market dynamics. Companies are expanding avenues
to tap tier II and tier III cities and are now also targeting global level expansion as well.
B2C Ecommerce
Ecommerce segment is among the fastest growing sectors of the economy. Convenience of
online shopping for consumers and ease of a seller in starting an online store have made the
overall ecommerce ecosystem conducive for growth. The grocery market in India is also
undergoing changes disrupted by eGrocery platforms which have transformed the way people
shop for groceries. Covid-19 has accelerated the trend. Ecommerce simplifies the shopping
experience for both consumers and vendors. This added with bouquet of brands available,
discounts on products, various delivery options and payment options has helped increase
usage of e-commerce. Omnichannel presence of companies has helped overcome trust issues
of customers and has also led leading e-tailers in India to open brick-and-mortar stores. These
companies have created innovative product bundles to cater needs of customers in ensuring
greater customer engagement.
Ecommerce can be broadly categorized into horizontal and vertical businesses. While horizontal
classifieds offer a range of products (like Amazon, Flipkart), vertical classifieds target niche
markets (like Pepperfry, Nykaa, FirstCry). B2C companies are also innovating on selling
strategies to consumers such as direct sales to consumers, digital channels, and subscription
services by using digital capabilities such as payments, analytics and personalization.
Companies have also diversified into various other segments like Flipkart has forayed into the
media streaming via Flipkart Videos along with entering the hyperlocal segment, while Amazon
has entered the food delivery business.
Indian eGrocery Business Models Shares of various segments in e-commerce retail by value (2020)
Model Companies 2%
Verticals Grofers, BigBasket
4%
Horizontals Amazon, Flipkart 7% Consumer electronics
Micro-delivery vertical Milkbasket, BBDaily, Supr
7% Appareis
Super-verticals Licious, Fresh to Home 40%
Food & grocery
Hyperlocals Swiggy, Dunzo
Jewellery
Furniture
40%
Others
Source: Industry, Antique Source: EY
Emerging trends in the B2C E-commerce sector

n Focus on bringing personalised offerings by customized needs using analytics
n Expansion of product portfolio through acquisitions and partnerships
n Becoming Omnichannel to help enhance consumers' experience across channels
n Vertical players entering niche segments
n Offering credit facility in with Fintech companies
B2B Ecommerce
B2B eCommerce means when two trade entities are involved with each other in commercial
transactions. Unlike B2C, B2B transaction takes place on a larger scale. Here two wholesale
businesses are involved instead of an individual who is the consumer. B2B differs from B2C in
numerous ways: Decision making, Content and marketing strategy, Relationship with customers
and Solution providing. B2B eCommerce in India saw its start with IndiaMart gradually
getting into the segment almost two decades ago. B2B e-commerce gained momentum due
to demonetization, GST rollout, and increase in internet users. The lowered cost of broadband,
mobile data, smartphones all have helped in penetration of the urban and rural section.
Digital transformation of smaller businesses has been attributed for the rise of B2B focused
startups. It has also brought efficiencies in the B2B supply chain via richer data and automated
processes (payments, logistics).
Mostly MSMEs transacts in this B2B market. At present, India has ~75-80mn MSMEs and
individual service providers that contribute significantly to India's GDP and key drivers for
growth in this category. Past few years have seen emergence of many Indian B2B ecommerce
players such as Amazon Business, Flipkart, Alibaba, Indiamart and Shopify. JDMart, backed
by Reliance Industries, is a recent entrant in the space. Over the recent past, Udaan, ShopX,
Ninjacart, Indiamart, Moglix, and Jumbotail have been trying to digitize various parts of the
wholesale supply chain in India. Some of the key product categories in the segment are:
FMCG and grocery, Consumer durables and electronics, Beauty and personal care, etc. B2B
e-commerce segment is also expanding into consumer durables, mobile accessories, apparels,
home furnishings and healthcare and in niche categories such as construction and industrial
supplies.
Emerging trends in the B2B E-commerce sector
n Companies continue to focus on digitization and supply chain efficiency
n Rise of mobile commerce
n Use of AI and big data for data-driven processes by B2B platforms
n Increased use of AI for automation and B2B marketing
Alibaba Group, Chinese multinational, has made a massive success in this segment from
launching its first website helping small and medium-sized enterprises in China by making
inroads in international market also. Alibaba Group has grown into a digital ecosystem with
businesses comprising core commerce, cloud computing, digital media and entertainment,
and innovation initiatives. Alibaba group caters online B2B marketplace through 1688.com
(Domestic) and Alibaba.com (International).
India eB2B retail market (USD bn)
Source: Redseer
Retail/Kirana Tech
Over the last ten years, the retail market in India has experienced significant growth and
transformation. The overall size of the Indian retail market was ~USD255bn in 2010 and has
grown to ~USD800bn as of FY20 and further pegged to grow to USD1.5tn by 2030 enabled
by rapid acceleration in offline + online models (Technopak Analysis, NASSCOM Research).
The retail landscape in India is largely unorganized, which constitutes ~88% of the overall
retail market. This unorganized segment, otherwise known as the informal segment, consists of
~13mn Kirana and neighbourhood stores and play a pivotal role in the Indian retail sector.
India Retail Market Growth Story (USDbn) Evolution of Retail space

1600 1476 Retail's Journey Periods Retail channel
Retail 1.0 Up to Year 1999 Neighbourhood Kirana,
1400
Supermarkets, Multi Brand
1200 1059 Outlets
1000 Retail 2.0 Year 2000 onwards Retail 1.0 + Branded Outlets
793 Retail 3.0 Year 2007 onwards Retail 2.0 + Online Retail/
800
Ecom - led by E-Com portals
600 495 and gradually adopted by
400 Traditional Retail
256
135 Retail 4.0 2020 onwards Offline + Online approach to
200 109
60 Retail - enabled by experience
0 personalization, operations
2020E
2025E
2030E
1995
2000
2005
2010
2015
digitization, supply chain

integration, fintech integration
Source: Technopak Analysis, NASSCOM Research Source: Technopak Analysis, NASSCOM Research
Over the past few years, however, there has been a shift in the shopping patterns of consumers.
Consumers are increasingly buying more via online, shopping at supermarkets or larger
modern stores and as a result, Kirana stores have happened to lose their customer base.
Some of the reasons contributing to the decline in share of Kirana include lag in adoption of
modern retailing techniques such as digital payments, inventory management or even an
official store layout. This disruption in the informal segment of retail is now getting addressed
through modernization of Kirana stores.
During the COVID-19 lockdowns in India, larger stores struggled to deliver due to supply
chain disruptions and consumers depended mostly on Kirana stores for buying daily essentials.
Due to their links with local distributors, Kirana stores were able to meet the demand of the
consumers. Many Kirana stores accepted digital payments during this time indicating their
willingness to upgrade to modern digital practices. COVID-19 brought the entire retail
ecosystem closer, as the e-commerce players joined hands with neighbourhood kirana shops,
or modern retail players collaborated with hyperlocal players.
O+O alliance for traditional retail: Neighbourhood Kirana embrace digitization, led by
online marketplaces
Source: Technopak Analysis, NASSCOM Research

Lockdown presented a unique opportunity to the tech-prenuers itching to solve problems the
tech-way. And, in came a slew of start-ups attempting to solve various difficulties and creating
efficiencies required by the kirana owners. The sudden lockdowns and re-openings brought
by COVID expedited the need for tech enabled solutions in the space, giving way to a lot of
digitisation and implementation of tech solutions in the space, popularly referred to as "Kirana-
tech". Start-ups are helping Kiranas modernise and streamline operations by offering various
tech solutions including effective inventory management, organise transactions, creation of
digital storefronts, GST support, digital payments, credit management, reducing cost overheads,
transparency in pricing.
Problem Solvers (Kirana-tech startups)

Digital Storefront Dukaan, Jio Mart, Digital Showroom, Bikayi, Dunzo, OkShop, MyStore
Inventory Procurement Waycool, Jumbotail, Udaan, Ninjacart, ShopKirana, JioMart
Inventory Management Snapbizz, GoFrugal, Nukkadshops, PayTm, JioMart
Attendance + Payroll PagarBook, Pagarkhata, OkStaff
Digital Payments + PoS OkCredit, Chqbook, PayTm, PhonePe, GPay, BharatPe, JioMart, Dropshop
Book Keeping Vyapar, Khatabook, OkCredit

Khatabook Khatabook gives MSMEs segment digital tools they need to support their businesses.
The first offering was a digital ledger application, which allows MSMEs, and Kirana
store owners to track credit flow with consumers and suppliers. Among other offerings
is a MyStore app, a digital online storefront for kiranas. Khatabook also has an em-
ployee management solution, Pagarkhata, to help small merchants digitize attendance,
payroll and salaries.
Shopkirana Shopkirana is a B2B supply chain-focused start-up for kirana stores. It is a B2B com-
merce company focused on technology and supply chain innovation that aims to em-
power retailers to be competitive by providing technology, operational expertise and
scale advantage. The idea is to partner with millions of retailers (by becoming part of
their supply chain) and making it the biggest and quickest go-to-market channel for
products and services.
Dukaan Founded in 2020, Dukaan helps small businesses to set up online stores instantly and
allows them to share digital catalogues on different social media platforms. 'Magic Up-
load' is a built in feature of the Dukaan app for merchants that allows kirana stores to
quickly upload their inventory to their own "Dukaan" along with automatic categorization
and pricing with the help of AI backed features upon clicking picture of the inventory.
Jumbotail Founded in 2015, Jumbotail is an online wholesale marketplace for grocery and food
items. Company helps kirana stores and supermarkets connect with brands and produc-
ers through a network of fulfilment and distribution centres (warehouses) using a mobile
application. They are building a supply chain to have a deeper network and understand-
ing of the kirana stores. They also have a fintech platform for offering working capital
requirements against the procurement of inventory by the kirana stores.
Snapbizz Founded in 2013, Snapbizz aims to help kirana stores scale up operations by offering
an opportunity to leverage hyper-local assortment, inventory and delivery capabilities
of the kirana. SnapBizz offers a set of solutions for retailers and brands which includes
SnapVision (helps in creating a virtual merchandising space), SnapEngage (Out of
store connect with consumers and CRM), SnapData (provides data insights), SnapBilling
(efficient store operations and smooth billing), SnapConnect (direct connect with brands
and distributors)
OkCredit Founded in 2017, OkCredit offers a way to manage ledger account book for all
business owners. It facilitates the recording of credit/payment transactions digitally all
over India. OkCredit equips merchants with an uncomplicated and secure means of
administering credit and debit records for their business conducted on an account
basis. It digitises their transactions and documents payment, hence, diminishing the
burden of maintaining paper account books aka Bahi Khata.7774
Logistics Tech
Logistics industry in India is highly unorganized and fragmented with fleet owners of 3-5
trucks spread across the country using inefficient legacy systems. For the past 3-5 years,
technology has taken the driver's seat and is fast evolving in the logistics industry, and is the
key driver for new age business models in the sector. Via technology, companies have now
been able to optimize routes, account for every minute, know about delays, and track the
parcels more efficiently. Dynamics for B2B logistics segment are slightly different from other
Industry segments and is typically not a winner-take-it-all market. This has pushed the case for
a number of varied type of tech start-ups in the logistics segment. Trucking, warehousing,
hyperlocal, delivery services are the top business segments gaining
significant traction in tech logistic space.
Many Indian logistics tech start-ups are based around deliveries. By having an optimum
coverage of distribution centres and intelligent understanding on the delivery requirement
(via data science), the ecommerce logistics companies like Delhivery, Ecom Express have
come a long way in optimizing the last mile delivery costs. Players like Blackbuck, Fortigo,
have invested in online platform (digital marketplace) connecting truck owners and load
owners for an effective, timely and economic engagement. Covid has accelerated change in
user behaviour in logistics industry and customers are now looking for solutions which can
provide them end-to-end visibility on shipments, workflow management solutions etc. The
supply chain visibility and automated processes throughout logistics supply chain have become
key enablers of business.
Technology driven logistics have gathered maximum pace since the onset of
Ecommerce in India. E-tailers primarily depend on 1) captive logistics arms; 2) independent
e-commerce-focused logistics companies; 3) incumbent express distribution players for their
ecommerce logistics operations. Finding a perfect logistics partner with a large last mile
reach across the country, Cash-On-Delivery (COD) facility and timely remittance are the primary
objectives for all the e- tailers. Key segments include: last mile, line-haul, fulfilment, collection.
Captive arms (e-Kart, Amazon Transportation) constitute a dominant mix of total packages
delivered for e-tailers, while ecommerce logistic companies (Delivery, Ecom Express), express
players (Bluedart) and supply chain companies (like Mahindra Logistics) have managed to
make sustainable inroads in the ecommerce logistics segment - via a tech-enabled offerings.
Hyperlocal business is another category in the ecommerce logistics space
which has gained significant traction with the rise of Internet (mobile) users, surge of
payment options, and increased demand for insta-deliveries. The sector has accommodated
a bulk of start-ups that offer unique and promising solutions categorized based on the models
like groceries, restaurants, chefs, medicines etc. It involves bringing daily essentials and food
on demand, delivering within minutes, picking up any item from your doorstep and delivering
it to some other place. However, owing to weak business metrics and scalability issues many
of these early period start-ups have shut down as well.
n Improved tech infra
n Increasing ecommerce business
n Increase in internet users
n Increase in digital payments
n Growth in logistics sector led by macro
n Govt led compliance enables like GST, e-way bill
n Covid induced acceleration in adoption of technology
n Market share gains from unorganised players

Delhivery Delhivery (formerly known as SSN Logistics) owns and operates a logistic fulfilment
platform. Since its inception in 2011, Delhivery has become India’s leading
supply chain services company. While originally in only ECom/B2C logistics
segment, over past 2-3 years, Company has made significant inroads in B2B
segment as well. It recently acquired Spoton logistics to become a leading player
in the B2B road express segment.
Zinka Logistics (Blackbuck) Founded in 2015, BlackBuck has been a pioneer in bringing the offline opera-
tions of trucking online, be it matching a shipper with a trucker or reshaping the
infrastructure around trucking to facilitate payments, insurance, and financial
services. Company owns and operates an online marketplace for logistics trans-
actions Blackbuck.com. It brings together shippers and truckers through its online
marketplace to facilitate inter-city freight transportation.
Rivigo Rivigo Services (formerly Trucksfirst Services) caters to varied segments like
ecommerce, pharma, automobile, cold-chain and FMCG companies. Rivigo is
one of the large fleet operators in the country; it aspires to solve a real and a
fundamental problem of truck driver shortage in India using Truck relay model.
Their full-stack logistics offering includes relay-led trucking and freight market-
place. Rivigo delivers express logistics across FTL, LT and cold chain logistics.
Ecom Express Ecom Express is a leading end-to-end technology enabled logistics solutions pro-
vider to the Indian e-commerce industry. The company’s products include Ecom
Express Services (EXS), Ecom Fulfilment Services (EFS) and Ecom Digital Services
(EDS). Ecom Express has its presence in all 29 states of the country and operates
in over 2,600 towns across most pin codes in India. Company recently invested
USD11mn in Bangladesh’s largest 3PL ecommerce logistics firm - Paperfly.
BTJ Logistics (Freight-walla) BTJ Logistics owns and operates an online freight forwarding and logistics portal
Freightwalla.com. This is one of India’s leading digital forwarder that offers
instant quotations and schedules, real-time tracking with automated alerts and
online documentation to streamline logistics operations. The technology helps
clients by getting visibility and control across supply chain, reducing redundant
processes and also manages risks and cost escalations effectively.
Dunzo Dunzo is a hyperlocal delivery app which services everything from delivering of
food/grocery and medicines to picking up flowers and party supplies. Dunzo
started out as a WhatsApp service. It works on a 2-sided network and connects its
delivery personnel to the nearest user’s request. Dunzo has diversified its several
revenue streams including: (1) Commission; (2) Delivery Charge; (3) Surge pric-
ing; (4) Services - repairs, home service, etc; (5) Miscellaneous Category-This is
called “kuchbhi” request. The charge of these categories is decided on the task
description.
Mara Labs Inc (Locus) Locus is a global decision-making platform that automates human decisions in
supply chain to provide efficiency, transparency, and consistency in logistics
operations. The platform uses deep machine learning and proprietary algorithms
to offer smart logistics solutions like route optimization, real-time tracking, in-
sights and analytics, vehicle allocation and utilization and more.
LogiNext Solutions LogiNext is amongst fastest growing SaaS companies providing solutions to man-
age and optimize logistics and field service operations. LogiNext’s products are
its cloud-based last mile delivery and route optimization software and its field
service and field workforce optimization software. LogiNext typically serves large
enterprises having frequent movements of shipments, vehicles, movable assets,
delivery associate, field technicians, repair workers or even sales personnel.
Shadowfax Technologies Company owns and operates an online delivery services portal shadowfax.in.
Company provides delivery of food, medicine, grocery, e-commerce, and e-com-
merce return logistics. Company also offers delivery and pickup services for same
day delivery, intercity delivery, next day delivery, bulk delivery and air connect.
Company caters to industries such as food and beverages, electronic commerce,
laundry, pharmacy, etc. The company is present in over 500 cities covering
7,000 pincodes.
Food Tech
Global trend indicates big headroom for growth
Food-tech startups have transformed the way Indians eat & dine. Macro trends, such as rising
internet and mobile penetration, consumer demographics & disposable income, expansion
into lower tier cities, improved user discovery experience on platforms have all contributed to
growth in past 3-5 years. Covid has further given boost to online food ordering trend. While
still far too underpenetrated, ordering food online is now getting into a habit for many. Food
consumption market stood at USD670bn in 2019 and most of this is driven by homecooked
food. The restaurant food currently contributes only ~10% to the food consumption market in
India vs. 40-50% in other developed markets. Further, only 8% of people on internet (in India)
order food online compared to 38-50% in other developed markets (Redseer estimates). We
expect this ratio to increase going forward as online food delivery users will grow at faster
rate than internet users. Industry offers large scope of growth as internet users are increasing
as well as people in India are inculcating culture of ordering food online.
Comparison of India, US and China (2020) Unit India US China

Population bn 1.36 0.33 1.43
Access to internet/ population % 43 88 63
Online food delivery market USDbn 4.2 21 90
Restaurant food % 10 54 58
Online food delivery users mn 45-55 90-120 430-470
Online food delivery users/ access to internet % 9 36 50
Source: Redesser, Company, Antique
Factors & risk related to Food delivery segment

n Demand for the food delivery platform is highly sensitive to a range of factors, including,
delivery charges charged by delivery partners, incentives given to delivery partners and
the commissions Company charges to restaurant partners.
n Number of orders is also subject to seasonal fluctuations, and they tend to be generally
higher when customers may be less likely to dine-out as a result of unfavorable weather
or during certain festival seasons and holidays when customers are more likely to order
food for delivery.
n Unfavorable publicity regarding the business model, revenue model, customer support,
technology, platform changes, platform quality, actions of delivery partners and restaurant
partners, privacy or security practices, or management team could adversely affect
reputation and results of operations. Failure to generate and maintain sufficient high
quality customer generated content/poor reviews could negatively impact the business.
Intensely competitive markets
Food Delivery Market is intensely competitive and characterized by low costs of entry, shifting
customer preferences, fragmentation and frequent introductions of new services and offerings.
n Major Food delivery players in India are Zomato and Swiggy. Swiggy entered late but
has managed to be among top 2 in the segment. Swiggy has diversified into groceries
delivery as well, while Zomato also recently added indirect position in the grocery space
via acquisition of minority stake in Grofers. Amazon forayed into the food delivery segment
in May-20 with initial start from Bangalore; Food delivery is through a tab built-in the
Amazon app.
n Cloud kitchens like Rebel Foods and branded Food Services players (including quick
service restaurants like Dominos, McDonalds and Pizza Hut, among others)
n Restaurants which own and operate their own delivery fleets, traditional offline ordering
channels, such as take-out -offerings and phone-based ordering, local publications, and
other media.
Number of attempts have failed in past in the Food Delivery segment

n Tasty Khana started operations in 2007, was acquired by Foodpanda in 2014
n Scootsy was started in 2014 and was acquired by Swiggy in 2020
n OlaCafe started in 2015 and then shut in 2016
n Tiny owl started operations in 2014 and shut down operations in 2016
n Foodpanda started in 2012. It was later acquired by Ola in 2017; shut down in 2019
n Uber Eats entered in 2017 was acquired by Zomato in 2020
Improvement in Unit economics in FY21
FY21 saw a turnaround in unit economics for Zomato & probably Swiggy as well as contribution
margins turned positive on the back of lowered discounts and reduced overall Cost per order
including delivery cost, higher Average Order Value and commissions charged from restaurants.
All this happened amid increased acceptability of customers to order food online and
restaurants' compulsion to go online on a discovery platform like Zomato or Swiggy to able to
sustain business. Company witnessed sharp recovery from Covid to end 4Q at record Orders.
Over medium to long term, growing scale of operations will drive improvement in Unit economics;
benefit of scale will show in profitability as fixed cost would remain stable.
Business segments: Key drivers

Food Delivery Dining Out
Revenue Model 1) Transaction Based 1) Advertising
2) Advertising
Revenue Drivers 1) No. of Monthly transacting Users 1) No. of Monthly Active Users
2) Order Frequency 2) No. of Restaurant partners paying for
advertising sales product
3) Average Order Value (AOV)
4) Commision rates charged
to Restaurant Partners
5) No of Restaurants partners paying
for Delivery Ads Sales product
Cost Drivers 1) Delivery Costs
2) Discount & Marketing spend Sales Team
Strong network effects in the system

More content leads to more customers and more customers lead to richer content. More
customers on platform also increases number of food orders for restaurants on platform in turn
leading to more restaurants becoming available for food delivery on the platform. More food
delivery orders on platform reduces the delivery cost which reduces the prices for the customers,
thereby leading to even more food delivery orders.
Much is said about the abusive policies of aggregators of which restaurants are irked about
n High take rates, especially for smaller restaurants: Take rates charged to
bigger restaurants are lower than 15% compared to much steeper 25-30% charged for
smaller restaurants. These smaller players suffer the most, as high take rates make their
business proposition commercially unviable.
n Data sharing: Customer data is not shared by aggregator to restaurants and used
only by the aggregators.
n Tightly coupled stack: Problem is peculiar to India; restaurants have to take every
service from aggregator. Onboarding, customer experience, catalogue - all handled by
aggregator in tightly coupled stack.
n Cannibalization - Aggregators have advantage of studying the data, and ability to
lower prices by opening up own private label brands (cloud kitchen) at lower prices.
n Rigid policies: Aggregators have rigid (& often discomforting) policies to be followed
by restaurants with respect to cancellation of order, refund policy, preparation time.
EdTech (Education Technology)

The education sector is one of the key focus sectors of the Indian government. According to a
report by PGA Labs and IVCA, India's education sector is poised to grow from the current
USD117bn to USD225bn by FY25, growing at a CAGR of 14%. As per the report, India
currently has 360mn learners across age groups. The education sector is overall fragmented
with large number of players catering to various sub segments of education in India. In line
with the increasing internet trends in the country, past 5-7 years has seen the emergence of
Edtech sector in India. In India, formal schooling is regulated by the government, while the
new age Edtech start-ups are more in the informal space. Edtech brings to students a host of
options and content for interactive learning. This goes in line with highlights from National
Education Policy (NEP) 2020 that suggests that in all stages, experimental and practical
based design of learning would be a focus instead of rote or memory-based learning. Via
acquisitions, companies increase the range and kind of content offered on their platforms.
Companies have a larger set of free users, and a smaller percentage as paid users, who get
into the habit of learning from a screen by using it for a few times a week.
While EdTech was gaining gradual traction in general, the pandemic has catapulted the
Edtech sector to limelight, with schools remaining closed and online learning emerging as the
new trend. Newer players have emerged and Edtech players have scaled up overall offerings
to serve various tapped/untapped market segments. Several of the firms in the segment
witnessed explosive growth over the past year. The sector has also seen significant increase in
investor interest, in line with the envisaged growth potential of the EdTech players in India.
Byju's is by far the largest and most popular player in the Edtech segment and is followed by
Unacademy and Vedantu. Other players include Toppr, Upgrad, Eruditus, Cuemath etc.
Various categories in online Learning
n Primary/secondary & supplemental education
n Reskilling and online certifications
n Higher education
n Language and casual learning
n Test preparation
FY20 market size of different Educational sectors in India (USDbn)
Source: PGA Labs analysis, 2020 Data Till 10-Dec-20

Education and EdTech landscape in India
Source: PGA Labs analysis

n Increased internet and smartphone adoption
n Improved online education experience
n Improved quality and variety of course content
n Low-cost alternative for reskilling/ certification
n Increased adoption of online learning, post Covid
Byju's Think and Earn Company owns and operates online learning application Byju's. The
company started off as an offline test prep provider for entrance exams and then
expanded into coaching for classes 11 and 12, and further to classes 6-10. The
company launched its flagship product, BYJU'S - The Learning App, for classes 4-12 in
2015. Company has diversified offerings and has grown through various acquisitions.
In Aug'20, the company acquired WhiteHat Jr for USD300mn. More recently, in
April'21, company completed acquisition Akash Educational Services valued at USD1bn,
to bolster its presence in the test preparation segment. In past, company had done
other smaller acquisitions like LabInApp (Lab simulation startup), Osmo (gamified learn-
ing for kids), Math Adventures (Activity-based math learning platform), Tutor Vista
(Online tutoring in the US), Vidyartha (Assessment platform), Scholr (doubt solving
platform).
Unacademy In 2010, Unacademy was started as a YouTube channel and in 2015, became an
educational technology platform, focusing more on live coaching for competitive ex-
ams. Unacademy has grown by doing several acquisitions in past 3 years, including 6
acquisitions done in 2020, targeting to expand the scope of LIVE learning.
Vedantu Vedantu is India's leading online tutoring company which enables students to learn
LIVE on the platform. Vedantu caters to students across grades K1-12. It has indigenous
platform (called WAVE) built for online learning which captures multiple parameters,
drive high engagement and interaction in a virtual class, and give students their
personalized learning reports.
Toppr Company is engaged in the segment of providing online practice and test packages
that help students prepare for IIT JEE, PMT, school boards and other competitive exams.
It also offers study materials like NCERT, previous year Qs papers, CBSE notes, impor-
tant questions etc.
Online Travel & hospitality

Online Travel Agents (OTAs) have evolved globally into digital marketplaces that connect
both B2B and B2C customers directly with a range of travel related products including flights,
hotels, travel tours. OTAs are third parties, reselling these services on behalf of the travel &
hospitality companies. OTAs serve a combined purpose of an e-commerce platform and a
travel agency and have, over a period of time, taken away share from traditional travel
agents. However, in many markets globally, OTAs and traditional travel agencies continue to
co-exist. Many tourism businesses use OTAs for a % of their distribution network while use
traditional travel agencies or their own websites to maximize sales.
Indian online ticketing market (hotel, flight, rail, bus) has increased at a CAGR of ~15-17%,
from INR680-700bn in FY15 to ~INR1,455-1,475bn in FY20. Travel is one of the most mature
online businesses in India. The increase in Indian online ticketing market can be attributed
primarily to the increasing penetration of internet and smart phones as well as growing share
of low-cost airlines, higher discount offered, increasing popularity of online railway ticket
booking system and convenience that online bookings offer. Despite, Covid-19 pandemic
having impacted the industry, it is expected that Indian online ticketing market will increase at
a CAGR of ~3-4% to reach INR1,600-1,620bn by FY23. Online booking share in overall
ticket booking was 42-44% in FY15, which is estimated to increase to 56-58% in FY20 and
further to 67-68% in FY23. (Source: EaseMyTrip RHP, Crisil)
Segment-wise online ticketing mix (based on gross revenues) -

Online booking share in overall ticket booking Airline constitute over 60% of the mix
80
70
60
50
40
30
20
10
0
FY15
FY20E
FY23P
Source: Crisil, EaseMy Trip RHP Source: Crisil, EaseMy Trip RHP
Sub-segments: Airline segment accounts for the maximum share in online travel bookings
n Air ticketing: The online ticketing market in India is led by high-volume airline ticketing
business, which includes both domestic and international travel. The air ticketing segment
accounts for ~60-62% of the overall online ticket booking revenue. In FY20, it is estimated
that ~68-70% tickets were booked by online mode in this segment, as they were among
the earliest segments to adopt online channels. Going forward, online air ticketing is
expected to increase further as more travellers (retail as well as corporate) migrate from
offline to online platforms (Source: EaseMyTrip RHP, Crisil).
n Rail ticketing: This segment accounts for ~23-25% of the Indian online ticketing industry.
IRCTC, which introduced online rail ticketing in 2002, has been instrumental in popularizing
online option for bookings in India. The share of e-ticketing in total rail ticket bookings
improved from ~55% in FY15 to ~73% in FY20.
n Hotel ticketing: Hotel segment accounts for ~13-15% of the Indian online ticketing
industry. Online penetration of hotel bookings in India is relatively lower at ~24-26%. The
hotel industry in India is fragmented with a large number of organized and unorganized
players. In addition, most of the online travel agency (OTA) started offering online booking
of hotel accommodation only after establishing a presence in air ticketing.
n Bus ticketing: The bus ticketing segment has less than 2% share in India's total online
ticketing industry. The segment is at a fairly nascent stage and only a few players have a
presence in this segment. In addition, online penetration for bus tickets remains low on
account of the availability of tickets with players, both private and state transport
corporations. Going forward, the share of bus tickets in online ticketing market is likely to
remain the same (less than 1-1.5%) (Source: EaseMyTrip RHP, Crisil).
OTA's accounts for majority share in online booking
n According to industry estimates, in FY20 in value terms, OTAs accounted for ~61-63% of
the total online ticketing industry in India based on the gross booking revenues. Share of
OTAs in total online ticketing industry is expected to decrease to ~58-60% in FY23 as rail
booking grows faster than airline segment due to limited international air travel for the
next three years, where OTA has less than 2% share.
n In the online air ticketing segment, OTAs have the highest share of ~76-78% in comparison
with captive websites which account for ~22-24%. OTAs have achieved higher share in
the air ticketing segment due to various factors, such as, convenience, ease of comparison
and competitive pricing.
n In the online railway ticket booking segment, IRCTC is the dominant player. Although
some OTAs have started offering railway tickets, the bookings are still routed through the
IRCTC platform. Accordingly, third party OTAs currently account for only a marginal share
of online railway tickets. Further, IRCTC has initiated a number of measures to improve the
user interface and ensure ease in bookings process, so going forward also OTAs are
expected to remain marginal players in this segment.
n In the online hotels booking segment, OTAs account for ~78-80% share. Similar to the
airline ticketing, higher degree of convenience offered by OTAs for number of options,
ease of comparison and competitive pricing have played a critical role in OTAs gaining
prominence in this segment.
n In the online bus ticketing segment, online penetration remains low on account of availability
of tickets with state transport corporations as well as private players. OTAs still have a
higher share of ~64-66% in the segment (Source: EaseMyTrip RHP, Crisil).
n Increase in internet/smartphone users
n Improved technology and website interface
n Growth of Indian tourism, staycation, easing visa policy
n Faster economic growth, rising income levels
n Demographic shift; deeper penetration of travel into lower tier towns.
n Attractive pricing/discounts/comparative pricing offered by OTAs
Various categories and key players in online travel and hospitality: Intensely competitive
Air ticketing Rail ticketing Hotel booking Bus ticketing Foreign OTAs
MakeMyTrip, EaseMyTrip, IRCTC Oyo, MMT, Goibibo, MakeMyTrip, Airbnb, Trivago,
Yatra, Cleartrip, Wego, Cleartrip, Yatra, Red Bus (Ibibo), Booking.com, Expedia,
Goibibo, Ixigo EaseMyTrip, Travelguru, Yatra, EaseMyTrip Trip.com, Tripadvisor,
FabHotels, Wego eDreams ODIGEO
OYO Rooms: OYO is a global platform that empowers entrepreneurs and small businesses
with hotels/homes by providing full stack technology that increases earnings and eases
operations. The company has a network of 100,000+ small hotels/home-owners spread across
800 cities in 8 countries. OYO model is a combination of platform and brand which targets to
standardise offerings in mid-tier properties, brand them the right way and increase traffic
through online acquisition. It targets to provide rooms with standardize quality/price; these
standardizations include various measures in each room including breakfast, TV, bed linen,
Wi-Fi, toiletries, trained staff etc. It has also ventured into the co-living/co-working spaces
Health-tech
Covid-19 has brought the spotlight and accelerated the adoption of digital healthcare in
India with increased focus of people on lifestyles and health metrics. The Covid norms around
lockdowns/social distancing have pushed customers to move to online consultation, treatment,
medical tests and medicine delivery. Such is reflected in increased traction of Health-tech
apps like Practo, NetMeds, 1mg, PharmEasy. Amazon India also launched 'Amazon
Pharmacy' last year.
Technology helps in addressing 3 main pillars of healthcare i.e. (1) Healthcare
access and delivery; (2) affordable healthcare, and (3) quality healthcare
(NASSCOM). Over the past 5 years, towards this significant market opportunity, Indian health-
tech start-ups have gained substantial momentum, fuelled by a government push towards
digitization, internet penetration and spurt in health care apps. The start-ups largely work
towards minimization of the user effort in receiving medical care (providing quality access to
products and services), be able to prevent illnesses with the use of apps, tech platforms,
access to hospitals etc. Among the key areas mobile apps and healthcare platforms, e-
pharmacy, e-diagnostic, tele consultation, and wellness analytics have gained large traction
among investors.
In India, most of the players in the sector were incorporated in the past 5 years, as before that
availing online healthcare services was not prevalent in the country. According to a recent
report by The Internet and Mobile Association of India (IAMAI) and management consulting
firm Praxis, the HealthTech market (~USD1.9bn market in 2020) is less than 1% of overall
healthcare market and is likely to see a 39% CAGR growth to reach USD5bn by 2023. Covid
has accelerated the adoption of online consultation, e-pharmacy, homecare services and e-
diagnostics. Even hospitals are redesigning their strategy and have increased focus to acquire
patients through online channels. Among the key findings in the report are: (1) e-pharmacy
and B2B HealthTech are the two largest segments in the sector and account for ~70% of the
overall HealthTech market while e-diagnostic and tele-consultation are the fastest-growing
sub-segments with 66% and 73% growth respectively; (2) Government initiatives like the
National Digital Health Mission (NDHM), Telemedicine Practice Guidelines 2020, E-pharmacy
Draft Rules, etc. create a conducive environment to promote the digital healthcare ecosystem
in India; (3) Increased adoption among the public also increased the need for technological
solutions, in turn resulting in start-ups coming up with innovative ideas.
HealthTech market (USDmn): Size at USD1.9bn, could be

USD5bn by 2023 and USD50bn by 2033 Private Investment trends in HealthTech sector (USDmn)
1200
45
100 E-Pharmacy
1000
70
B2B HealthTech
800
700 B2B Medical supplies
288
600
E-diagnostics
400
Tele-consultation
200
Other HealthTech
602 services 0
2014
2015
2016
2017
2018
2019
2020
Source: IAMAI, Praxis analysis


n Increase in Internet and smart phone penetration
n Competitive pricing/discounts offered by e-pharmacies
n Policy push by government
n Increase in lifestyle diseases
n Awareness about preventive health check up
n Attractive interface of apps and feedback loop
n Rapid increase in tele-consultation trend during Covid
Various categories and key players in Health tech segment
Source: RBSA advisors

Shared Mobility
Any mode of transportation that is shared by users on an as-needed basis, from 2-wheerlers
to 3-wheeleres to 4-wheerles for mass transit can constitute the definition of shared mobility.
Shared mobility leads to better utilization of the fleet, allowing more passengers to travel in
the same vehicle. Shared mobility also helps address the city specific challenges like congestion,
pollution, lack of parking space, energy consumption. Over the past decade, globally as
well as in India, shared mobility, particularly ride-hailing, has seen an upward trend.
The ride-hailing (and ridesharing) on-demand services link passengers to for-hire drivers who
are using their own vehicles as commercial vehicles/taxis. This service is facilitated by online
platforms, which link drivers with riders and facilitate direct payment. These services operate
on dynamic routes and fares and transportation network companies also offer shared options.
The sharing of on-demand ride between multiple passengers is called as ride sharing, while
an unshared ride by an individual/family is called as ride hailing.
Shared mobility is often an economical commute option; cheap internet/data,
convenience to users, increase in urbanization, millennial population, are
the other key enablers driving shift to shared mobility. Over the past few years,
it is seen that the young generation in key metros have been shifting from traditional mobility
options (bus/3-wheelers) to ride-hailing services, as the taxis arrive at the door-step, these
services are integrated with advanced technologies and offer the advantage of no crowding.
Among the key hindrances to the growth of shared mobility are clarity on regulations, availability
of alternate cheaper modes of transport (like metro rail), presence of unorganized players;
and incidences of driver misconduct.
Intra city movement in India is led by Ola and Uber in the shared mobility segment; with both
offering similar services. Zoomcar is a self-drive car rental company, which enables users to
hire vehicles for personal use on self-driving basis. Targeting higher profitability over medium
term, this industry is eyeing vehicles that are more affordable, low maintenance and that
consume as little as possible - that primarily defines usage of EVs in the shared mobility
space. OEMs are seeking/building partnerships to enter the shared mobility market in India.
During Covid, shared mobility was one of the worst-hit technology start-ups in India. The
segment saw a sharp decline in bookings as corporates moved to working from home, where
physical distancing norms curbed demand for travel and people restricted any non-essential
movements. With the easing of ongoing pandemic, the segment has seen a broad-based
recovery - second wave being much faster than the first wave.
Recovery in GMV for OLA
Source: Ola
Recovery in Mobility gross bookings YoY (calendar year) Rideshare recovery YoY for Lyft (leading shared mobility
for Uber (global major in shared mobility) player in US)
200% 188%
150%
100%
50% 29% 25% 22% 20%
0%
-5%
-50% -38%
-53% -50%
-75%
-100%
1QFY19
2QFY19
3QFY19
4QFY19
1QFY20
2QFY20
3QFY20
4QFY20
1QFY21
2QFY21
Annual Gross bookings for Uber (USDbn): 50% CAGR in

CY16-CY19; In CY20, decline in mobility segment was Quarterly trend for Uber: Sharp upmove in Delivery business;
offset by traction in delivery business recovery in Mobility as well (USDbn)
25
Gross bookings (USDbn)
19.5
21.9
17.2
20 15.8
14.7
12.9
12.5
15
10.9
10.2
10.1
8.6
8.6
10
7.0
6.8
6.8
5.9
4.7
3.0
-
1QFY20
2QFY20
3QFY20
4QFY20
1QFY21
2QFY21
Mobility Delivery Uber

n Growing smartphone penetration and internet connectivity
n Increase in mode of digital payments
n Increasing disposable income
n Increasing cost of private vehicle ownership
n Competitive pricing versus other modes of transport
n Factors like congestion, pollution, lack of adequate parking facilities in developing cities
n Supportive framework for shared mobility
Mobile Advertisement
In current times, Mobile/handsets are considered the primary screen for all the connected
consumers in India and across various global markets. Inline with the exploding internet trend
(facilitated by cheap data mobile penetration), digital advertising has witnessed an upward
surge in 5-7 years. Digital ad market is growing at the fastest pace (across mediums) and
expected to overtake print as well as television revenues over next few years. COVID pandemic
has accelerated the adoption of the digital medium as a key advertising medium. With
traditional media severely impacted, brands across Industries have taken the digital route,
specifically targeting consumers through their handsets.
As per an Industry report (by Dentsu), digital Advertising grew 15% YoY in 2020 versus
overall decline in adspend to the tune of 17.5%YoY. Advertising spends on digital media
have increased from a share of 20% in 2019 to 28% in 2020 and further expected to touch
34% share by 2022, as per the report. Tier-II and tier-III cities have contributed the most to the
growth of the digital ad market. Such consumer trends supported by advances in technology
offer a fantastic opportunity for further scale, ensuring the digital ad spends will continue to
increase towards ROI and data focused mobile marketing platforms. Companies like Affle,
InMobi are looking to capture growth from increasing smartphone penetration that would
drive shift towards mobile based digital advertising in emerging markets like India and
others. Key growth drivers in the segment: (1) Increasing internet penetration/Cheap data
prices; (2) Social media/Vernacular content consumption; (3) Increasing mobile gaming; (4)
Quicker and targeted ROIs for brands; (5) High consumption of digital video.
Ad Spends across various media: Digital mix stood at 28% in

Growth of the Indian Ad Industry (INRbn) 2020 significantly higher YoY
100%
12.4%
10.8%
10.8%
12 15 17
90% 20
9.4%
8.9%
800 0.15 6 28 30
80% 2 6 34
2 6 6
700 0.1 4 4 2
4 2
70% 4 3
1 3
600 3 1
3 3
0.05 60% 1
35 34 3
500 31 29 25
0 50% 23 21
400 40%
-0.05
300 30%
-0.1
200 20% 40 40 41 40
-17.5%
40 39 39
519
565
626
685
565
626
703
100 -0.15 10%

- -0.2 0%
2016 2017 2018 2019 2020 2021E 2022E 2016 2017 2018 2019 2020 2021E 2022E
Ad Industry CAGR Growth (RHS) TV Print Radio Cinema OOH Digital
Source: Dentsu Source: Dentsu
Indian Digital Ad Industry (INRbn) Ad spends across various digital formats

100%
31.7%
32.4%
250 0.35 27 26 25 25 24 24 24
26.0%
25.0%
80%
0.3 5 4 4 4 4
200 7 6
20.0%
0.25 60% 29 29 29
29 28
15.3%
28 28
150 0.2
40%
100 0.15 18 19 21 22 28 28 28
0.1 20%
50 20 21 21 20 16 16 16
109
137
158
189
237
0.05
62
82
0%
- 0 2016 2017 2018 2019 2020 2021E 2022E
2016 2017 2018 2019 2020 2021E 2022E Display Banners Online Video
Social Media Other Incl. Classifieds
Ad Industry Growth (RHS) Paid Search
Source: Dentsu Source: Dentsu
Private Capital lining up for internet businesses - Raining

unicorns
With the huge growth opportunity lined up in the space across segments, investors' interests
have increased in the internet sector. Given that Covid-19 has only expedited consumers'
adoption of digital platforms, and that the unit economics is improving in certain segments,
investor's interest in these internet companies is at an all-time high now. This has resulted in a
surge in valuations of the companies. In 2018/2019/2020, 8-10 start-up Companies turned
unicorns (valuation of USD1bn+) and in 2021 so far already 26 companies have reached
unicorn mark. Businesses across Edtech, Food-tech, Fintech, SaaS have cornered significant
investments as demand from home-bound consumers soared. Suitable government policies,
regulatory reforms and rising demand for digital services is creating India into a favourable
destination for influx of funds from global investors. India is also probably reaching the
required maturity level to harness the global opportunities and could partner at the global
level to grow beyond the domestic domains.
2021 has witnessed various start-up IPOs, starting with Nazara Tech, followed by Zomato
(loss making) and CarTrade. Others who have filed for IPO include Paytm, Ixigo, Freshworks,
Nykaa and others. Some of the late-stage start-ups in search for better regulatory incentives
and risk capital availability, are also looking for listing abroad; for instance, some of the
Enterprise SaaS companies are born in India but are looking to list in USA.
List of companies entering Unicorn club

Company Segment Company Segment
2021 2020
1) Zetwerk Marketplace - Manufacturing Services 1 Glance InMobi Content - Lockscreen
2) Grofers E-Commerce - Groceries 2 Dailyhunt Content - News
3) Eruditus Edtech - Executive Education 3 Zenoti SaaS - Salon & Spa Management
4) CoinDCX Cryptocurrency Exchange 4 PhonePe Fintech - Payments
5) upGrad Edtech - Higher Studies 5 Cars24 Marketplace - Used Cars
6) MindTickle SaaS - HR - Training 6 RazorPay Fintech - Payment Gateway
7) BharatPe Fintech - Payments 7 Unacademy Edtech
8) OfBusiness NBFC (SME Loans) 8 Postman SaaS - API Development & Testing
9) Droom Marketplace - Used Cars 9 Nykaa E-Commerce - Personal Care & Cosmetics
10) BlackBuck Logistics Services 10 Pine Labs Fintech - PoS Payment Solutions
11) BrowserStack SaaS - Software Testing 2019
12) Zeta Fintech - Neo Banking 1 Lenskart E-Commerce - Eyewear
13) Moglix B2B E-Commerce - Industrial Equipment 2 Ola Electric Mobility - Electric
14) Urban Company Marketplace - Handyman Services 3 CitiusTech IT Services - Healthcare
15) ChargeBee SaaS - Subscription Billing Solution 4 Icertis SaaS - Contract Management
16) Gupshup Conversational Messaging 5 Druva Software SaaS - Data Management
17) ShareChat Social Media 6 Rivigo Logistics Services
18) Groww Fintech - Brokerage & Mutual Funds 7 BigBasket E-Commerce - Groceries
19) PharmEasy E-Commerce - Online Pharmacy 8 Dream11 Gaming
20) CRED Fintech - Payments & Credit Card Rewards 9 Delhivery Logistics Services
21) Meesho E-Commerce - Social Commerce 2018
22) FirstCry E-Commerce - Baby Care Products 1 BillDesk Fintech - B2B Payments
23) Five Star Business NBFC 2 Freshworks SaaS - CRM
Finance
24) Infra.Market B2B E-Commerce - Construction Materials 3 Udaan B2B E-Commerce
25) Innovaccer SaaS - Healthcare Data Analytics 4 OYO Rooms Proptech - Hotel Booking
26) Digit Fintech - General Insurance 5 PolicyBazaar Fintech - Insurance
6 Swiggy Foodtech
7 PayTM Mall E-Commerce
8 BYJU'S Edtech
Source: Ventureintelligence
Comany Section
Razorpay
Razor pay as fintech, has vision to make end to end money movement for
businesses seamless i.e. accepting payments, managing money, and taking
care of cash management and lending services requirements of the business.
It is the second largest payments company in India and probably the largest
player in the internet/e-commerce payments space, a neo-bank and OS
Represented by platform to build different applications to enhance customer experience. As
Mr. Rahul Kothari per media reports, Razorpay which is already backed by Sequoia Capital,
Chief Business Officer Matrix Partners and Rabbit Capital, is in talks with large global funds to
raise USD200-250mn at a valuation of around USD4bn. As an experienced
Fintech leader, the discussion was around evolution and the future of industry.
n Fintech Evolution: Industry has come a long way from building payments infrastructure
from 2010-12 to innovations over 2016-20 and now have high confidence on the business
model. Fintechs now are in the fourth phase of their journey having higher confidence on
the journey to expand and monetize franchise strength.
n Payment business in India is highly evolved and even some of the developed nations are
lagging behind in business payments. The business model is built on simple business
principles: a) customer experience, b) high success rate supported by seamless infrastructure
and c) compliance.
n For payment gateway, traditionally there were two major revenue drivers i.e. transaction
revenues and cross border money transactions. Some of the companies are profitable
but many payments companies are not profitable currently as a lot of investments are
going into R& D expenses and building horizontal businesses.
n At an industry level, payments mix for merchants is 30% Credit cards (has been stable
over last few years), 20% Debit cards, 30-40% UPI, 10% Net banking and 5-10%
wallets (has become significantly small) & other payments (cred pay, gift voucher are
becoming dominating in this last 10% category). Generally, payment companies do not
charge consumers (except for convenience fee in some use cases) and merchant chargers
are (1) interchange/card transaction fee or payment instrument fee and (2) technology/
platform fee. Typically platform fee would be the same across instruments and payment
transaction fee would depend on the instrument.
n Net revenue margins are low but volumes are offsetting factor: One of the biggest
variable charge would be interchange cost, i.e. charge that the issuer of the instrument
gets for the transaction (UPI (zero) currently), other variable costs would be technology
switching cost, hosting cost and other smaller data server cost which would be variable,
Fixed cost would be licensing fees, data employee team etc. Quoted example that per
transaction of INR100, variable cost could be 1.7-1.8% and net revenues could be 20-
25bps (transaction fee assume 2%, less variable cost) from which company has to provide
for fixed cost.
n There are differentiators and a strong payment provider that provides 5-10% higher success
rate of online payments and merchants would be willing to pay higher premium, then other
features of payment gateway such as quality of the check-outs, customized integrations for
specific flows, specific risk engines to ensure that the chargebacks are minimal that could
drive higher revenues/margins. Accelerated volumes can keep payments business profitable,
but these would depend on differentiation factors discussed above.
n Data storage on merchant's platform: Merchant's were not allowed to store data by
themselves on their websites earlier as well, unless they were PCI/DSS certified (like
Sohail Halai Amazon, Flipkart) or they had to take services of payments company like Razorpay which
are PCI/DSS certified that would store data on their servers. Now under new regulations
+91 22 4031 3425
either banks or networks can store data and PCI/DSS certified merchants or payments
companies cannot store data on their own servers. Razorpay is working with a solution
Prabal Gandhi with banks where they save data on banks' servers and then would have technology
+91 22 4031 3303
service provider arrangement with the banks for retrieving stored data hence merchants,
prabal.gandhi@antiquelimited.com consumers experience would stay seamless as earlier. Similarly, others would have to
find similar solutions and work with banks by integrating their APIs.
Vidhi Shah n BNPL: RazorPay is in the early phase of BNPL (evaluating) and has 75k merchants, of
+91 22 4031 3467 which 50-60% are eligible for this service. Rest is not eligible because of merchandise
vidhi.shah@antiquelimited.com products they engage in (e.g. mutual fund, or because of risk check).
Namaste Credit
SME fintech, backed by Nexus and Amicus (investors) and partnered with
100 financial institutions with annualized disbursement run-rate of
USD300mn, was founded with a vision to democratize SME lending, a
significantly untapped vertical due to its sheer size and complexity (70mn
SME borrowers, USD600bn annual credit demand and borrower specific
customization). Works with 15,000 channel partners and company provides
Represented by solution and revenue model is linked to (1) Loan Hub: improves access to
Mr. Gaurav Anand credit by 6x for SME borrowers, 2) ICAM: Underwriting product - looks to
CEO automate credit decision by synthesizing unstructured data, fraud detection
by AI/machine learning and reduce turnaround time and recently added c)
neo-banking services: to manage SME customer accounts (inventory
management, etc.) and increase engagement.
n Industry: There are ~70mn MSMEs, and only 40-45% credit needs are met today,
translating into USD600bn credit outstanding and growing at 20% annually.
n Company primarily focuses on on-boarding SME customers, originating loans and fastening
credit underwriting and disbursement processes via tech and monitoring SME loans.
Typically ticket size ranges from 0.5-0.7mn for unsecured loans and to INR7.5mn for
secured loans. Currently helps financial institutions disburse USD300mn and expects it to
be 2x by Mar-22.
n Loan hub: A platform which enables customers to on-board in a fully digital manner by
uploading documents and connecting through APIs. Company runs fact-checks for frauds
and AI to gather multiple information from social media, government sources (MCA
database, GST filings) and credit bureaus. This enables the customer to access credit by
6x at better rates.
l This approach of extensive data analysis and mapping of customers in tandem with
financier's policy has helped in reducing turnaround time to minutes vs. a week earlier.
l Company partnered with 100 financial institutions including large PSBs, large PVBs,
NBFC, HFC and fintech for loans, and is currently disbursing INR2bn+ per month
and plans to disburse INR5bn by March 2022.
l Currently, around 60-65% of loan requests get approved and witness disbursements.
l Company has partnered with 15k channel partners for origination of loans.
l Segmental revenue by charging percentage of disbursements. Rate varies for secured
and unsecured products, and on average the company earns 1.5% of disbursements.
n ICAM: Product helps financiers in fast and accurate underwriting. Company cites that
currently 1000 data points are typically analyzed by financiers, despite them collecting
500 pages+ documents from SME customers. Detailed analysis isn't feasible due to
manual approach, and the company is making it feasible, by using artificial intelligence
on all documents, digitizing documents and thereby helping financiers in making more
accurate assessment of borrower's capacity.
l Loan sanctioning duration has considerably reduced by 25% (nearly a week).
l This product has seen strong demand post COVID, and the company has quickly
increased its partnership to 50+ financiers vs. 8-10 pre-COVID. Financiers include
top lenders in banks/NBFC/HFC/CRA. So far, only one NBFC has left the platform
because of their conscious choice to conserve liquidity instead of loan sanctioning.
l Company has seen <10% churn on this platform and only NBFCs which have exited
the business would be part of this churn.
l SAAS based fees a) fees charged on number of users using the platform, i.e., credit
managers, branch managers etc. and b) % of transaction (disbursals) done on the
platform using SAAS product.
n Challenges in SME delinquency is likely to continue but as financial institutions are adopting
more of Namaste credits underwriting standards and products post COVID, it does indicate
superior performance of delinquency trend for Namaste credit.
Sohail Halai n In the third line of business, the company is looking to a) reduce collection cost of financiers
+91 22 4031 3425 by regular monitoring of cash flows, and b) by giving customers option to pay/deposit
sohail.halai@antiquelimited.com EMI whenever they want prior to EMI date. This is implemented via ASAP product.
n Patents: Company has 3 patents and 4th patent is in the pipeline. One patent pertains to
Prabal Gandhi Loan Hub processes (match makes SME customers application with business policy of 100
+91 22 4031 3303 financial institution for faster execution of disbursement), second patent pertains to video
prabal.gandhi@antiquelimited.com based Optical character reader (OCR used in ICAM to read various documents format
with accuracy of 95%) which fastens cash flow and financial assessment of customers.
Vidhi Shah n To continuously engage with customers, the company has introduced neo-bank features.
+91 22 4031 3467 n Technology spends are 40% of total expenses, including cloud expenses and resource
vidhi.shah@antiquelimited.com expenses.
Credit Wise Capital

Credit wise is a specialized two-wheeler financing NBFC and leverages on
technology and partnerships with BharatPe, one of the twelve fintechs it has
tie-ups with and 500+ dealer network to scale the business. Aim is to create
a balanced mix between only digital lender and a NBFCs. The gap the
founders (Mr.Aalesh Avlani and Mr.Hirak Joshi) saw was that two-wheelers
Represented by
Mr. Aalesh Avlani dealers played an important role in financing, but through partnerships
Promoter attempt is to re-engineer the flow where the company handholds the customer
to dealers of their choice and provide solutions to customers for its other
lending / investment needs. Started in early 2019 and backed by Mr. Kunal
Shah, founders of Bharat Pe and others, this Mumbai based, NBFC has a
presence in over 25 locations and 4 states across the country and adopts
clustered approach to grow. AUM stands at INR1.1bn which is expected to
scale up to INR5bn in 2 years. Company has financed new 2W to 25k+
customers. Mr. Aalesh Avlani, co-founder of Credit Wise Capital presented
on this space and below are the key takeaways:
n Process: Own app or tie-ups with fintech such as BharatPe where customers sees the 2W
financing link and click the same, which takes him to credit wise platform, where credit
appraisal is done on its app or whatsapp. Focus is on underwriting customers who have
banking habits and utilizes transactional data from BharatPe. Gives soft approval. Suggest
nearby dealers of company's choice. Ask dealer/customer to post their selfie on company's
platform. Approve the loan. Turnaround time is just 12min, and can go up to 2.5hours in
case field investigation is required.
n Dealer's role: Credit wise don't charge dealer for business origination but does not pay
the dealer unlike other lenders, resulting in low operating expenses per customers. Model
seems to be working well as dealer feedback and traction is healthy, also some dealers
has approached company to go live in their states. Company is a preferred financier
from select Bajaj and Hero dealership in early stage of its journey. Cost of acquisition is
low at 0.9% vs. industry average of 3-3.5%.
n Demand: company has ability to open tab to 30k leads a day because of its tie-up with
fintech. Company has 12 tie-up partners including companies like BharatPe, Dukaan,
Karmalife, and Bike for sale, etc.
n Customer profile: 40% customers are new to credit, therefore requires alternate underwriting
methods. Because of access to transactional data of tie-up partners, company is able to
underwrite these customers in efficient manner, and has seen healthy portfolio performance.
Does not work with employees of delivery companies, as attrition rate is high. Company
prefers to have high down payment. Customer salary is INR25-35k. Approval rate is 77-
78% on BharatPe (transaction for 6month) and 48% for dealer sourced.
n Source of funds: Company has 10 lending partners - AU bank, Yes bank, others, and
some more are in the pipeline. Cost of funds (at 12.9%, bankers are AU Bank, Yes bank)
will slow down gradually with time. Plans to contain leverage at 3x.
n Financials: Currently AUM stands at INR1.1bn (30% digital partnership), plan to increase
AUM to INR5bn by Mar'23, Monthly income is around INR18mn of which INR12mn is in
Sohail Halai income interest, INR6mn in fee income. Gross NPA is 2.5% vs. 4-6% industry levels and
+91 22 4031 3425 so far has written-off only 0.8% of loans (in this they are in touch with 75% of customers).
Yield flow: IRR is 24%, cost of funds is 13%, and operating expense is 4.5%. Average IRR
Prabal Gandhi is 24%, with IRR of 22% in metro regions and 28% in rural/semi-urban region.
+91 22 4031 3303 n Collection team - headed by Jai Singh, who is collection head at Bajaj Finserv. Digital
prabal.gandhi@antiquelimited.com collection forms 98% of total collections. Company has taken write-off of 0.8%, company
Vidhi Shah
is in constant touch with 60% of these customers.
+91 22 4031 3467 n Employee - zero marketing team as 2W is typically over the counter product. Majority of
vidhi.shah@antiquelimited.com team is deployed in sales and collections. Company has only one branch.
InCred
InCred is a new-age financial services platform that leverages technology
and data-science to make lending quick and easy. SME, education and
personal loans is the forte of InCred. Using cutting edge technology and
data sciences, InCred is revolutionizing lending. InCred uses technology post
Represented by disbursement stage which is most relevant in education loan segment in
Mr. Prashant Bhonsle order to track the journey of the customer to ensure minimal defaults.
Ex Head - Housing &
Education Loan businesses n The education sector is merely USD 13bn in India compared to USD 2tn in USA and also
at InCred
quite underpenetrated i.e. ~10%.
n The financial players for this segment apart from InCred are specialized players such as
Credila (subsidiary of HDFC), Avanse Financial etc. compared to other segments wherein
banks dominate.
n These players mainly cater to students going abroad which are around 5 lakhs per
annum and only 60-70K students require financial assistance. The upcoming new players
mainly cater to Indian education sector.
n Most of the underwriting processes is digital and 40% of customer acquisition is via
Vidhi Shah referrals.
+91 22 4031 3467
vidhi.shah@antiquelimited.com n Banks always delay the process in sanctioning letter due to excessive documentation,
which needs to be submitted in time to the university otherwise the student will lose the
Sohail Halai
seat. This is what gives them the edge over the banks as they understand the needs of
+91 22 4031 3425
sohail.halai@antiquelimited.com customer better.
Prabal Gandhi n Technology in this segment is more relevant post disbursements where you can track the
+91 22 4031 3303 journey of the customer right from stage of selection in university to admission and ensure
prabal.gandhi@antiquelimited.com better servicing to them as well ensure minimal defaults and InCred does that vey well.
Galaxycard
Galaxy Cards offers credit card products for a typical customer who has
less than INR30k monthly income. Company is in early stage of start-up
and has recently secured $450k funding from angel investors. Discussion
was on the business model of the company, we present our key takeaways
Represented by below
Mr. Amit Kumar
Founder n Sourcing: Company sources credit card loans from 700 towns in India, for meeting daily
requirements of customers. Around 40% sourcing gets done via referrals; remaining 60%
sourcing is helped by integration with various players such as Amazon, recharge
companies.
n High rejection rate: Amit cites 40% of on-boarded customers are NTC (new to credit),
and remaining 60% have previously taken loan(s) from either fintech players or informal
channels, therefore credit assessment becomes tricky and rejection rate is quite high at
75-77%.
n Products - company has three mainstream cards: a) free card with limit of INR1-5k, has
no annual fees, no joining fees; b) Premium card with limit of INR5-25k, has annual/
joining fees and; c) cards for rejected customers, has fixed ticket size of INR2k, has
joining and annual fees. During the covid times, company increased its loan limit.
n It takes only 3minutes to disburse loan to the customer, once he completes the formalities.
n Working - after generation of credit card bill, customers get 15days to settle the bill, post
which they are charged late fees and interest charges. Charged interest rate is 42%.
Sohail Halai
n Collections - fully digital and company has no fleet on street. Payments can be done via
+91 22 4031 3425
sohail.halai@antiquelimited.com any UPI QR code also. During the first 60days post default, company tries to draft
restructuring plan for customer, and therefore has been able to reduce delinquency to
Prabal Gandhi
5% vs. industry average of 10-12%. Registered peak delinquency of 8-10% during
+91 22 4031 3303
prabal.gandhi@antiquelimited.com second wave.
Vidhi Shah n Bucketing - ideal model in this business is 60% of customers pay on time, while others
+91 22 4031 3467
revolve so that revenue generation robust (very similar to credit cards offered by banks),
vidhi.shah@antiquelimited.com differential factor is this business targets lower end of the customers.
Kosh
Company was founded in 2019, is a digital first lending platform that provides
community-based credit through its mobile app, primarily to blue-collar
workers in Tier-2/Tier-3 cities. It provides access to formal credit to low- and
middle-income segments in India. It works on a joint liability model that
Represented by relies on group leaders and members who avail credit through the platform.
Mr. Aayush Goel n Process - Disburses loan in group of 3-6 people. Typically one person needs a loan, he
Co-founder
asks two more people to join and get a loan from the company. This a) allows word-of-
mouth marketing, b) increases chances of on-boarding good quality customers. These
customers typically have INR9-18k earnings per month, a typical blue collar customer.
Cumulative loan amount ranges from INR60-120k, has tenure of 10months and interest
rate of 33%.
n Sourcing - majority via referral, then partnerships and only 3-4% via D2C. Approval rate
in referral is relative high at 28%, followed by 11% in partnerships and even lower in
D2C. Company usually contacts employers and try to convert one employee into borrower,
who then spread the word and help on-board others. Referral earns INR500-700 per
loan.
n Why preferred? - Customers prefer digital route because offline consumes few days of
productive labor in completing formalities. 65% of customers on-boarded are new to
credit (NTC). >58% of borrowers take follow-on loan within a year.
n Loan book stands at INR55-57mn, across 3k borrowers, Par30<2.5%. Plans loan book of
INR130mn by March.
n Infrastructure - Company has no branches, and aims to have geo-spread presence to
mitigate geo-political risk. Employee - had team size of 38 people, 13 are in sales and
not on payroll, 25 on payroll has 7 in technology, 5 in collections.
n App offering is currently in three languages (Hindi, English and Punjabi), adding more
languages is easy, doable in <48hours.
n Collections - are done digitally. 88-90% of customers pay without help, others require
team of field officers. A) Customers' bucket, delinquency is monitored by a centralized
Sohail Halai team. B) Few members in each group is given e-NACH option, others are given UPI links.
+91 22 4031 3425 45% customers pre-pay loans, 30-35% pay on due date and 20-25% customers pay
sohail.halai@antiquelimited.com after due date. Company saw collection efficiency of 96% in August-21.
Prabal Gandhi n Risk mitigation - Geo-tagging - is used to determine co-borrowers proximity; typically it
+91 22 4031 3303 has been observed that neighborhood borrowers' delinquency is low due to social
prabal.gandhi@antiquelimited.com
pressures. Migration - before disbursing loan, company enquires about customer by
Vidhi Shah questioning him, cross-questioning others, to assess credit worthiness of customer and
+91 22 4031 3467 wiliness to repay. A) Customer owing home or living in rented home for many years, B)
vidhi.shah@antiquelimited.com with family is less likely to migrate back.
Home First Finance*

Home first finance is emerging as a strong housing financing company with
AUM of INR43bn and MCAP INR50bn+. Commenced operation in 2010 the
company was initially founded by Mr. Manoj Vishwanathan, Mr. Jaithirth
Rao and PS Jayakumar. Home first is a company managed by professionals
Represented by and promoters are True North Fund V LLP and Aether (Mauritius). With ~40%
Mr. Manoj Vishwantathan of the business sourced from the state of Gujarat, company is a focused
Founder & CEO affordable housing financier with robust growth track record, targeting
borrowers in low-middle income groups. Enabled by lean structure, powered
by technology, company has had impressive productive ratios. Lower
turnaround time, seamless disbursals is the growth/profitability path for
these players. Home First uses technology to extent of 70-80% in its
underwriting process and expects this number to go up-to 90%. Soon it will
be able to disburse home loans to formal segment in few hours from current
24-72 hours.
n Home First is technology driven affordable housing finance company with pan India
presence. It is present in 12 states which is 75% of affordable market. It has presence in
76 districts and expects to expand to 150-200 districts in medium term.
n The pre-underwriting process i.e. applications, data capture and customer credentials
are 100% digital, while certain underwriting process such as construction property related
loans need physical intervention. However, some companies have started sharing timely
satellite images of the site and thus eliminating the need of physical presence.
n 100+ data points are digitally captured for all customers. All customer and internal
communication documents, photographs, videos are available on single cloud based
system.
n Technology has reduced TAT from 7 days in past to 24-72 hours which can further reduce
to few hours especially for formal customer segment.
n Majority of sourcing happens via connectors (62%) such as railway bookings, small
brokers and builder ecosystem (14%).
n Almost 90% of its customers are comfortable with digital transactions and use NEFT, UPI
or payment gateways such as Google Pay to make collections.
Vidhi Shah n Company is using Salesforce for business workflow engine, supporting paperless home
+91 22 4031 3467 loan process and making it easy to communicate with customers.
vidhi.shah@antiquelimited.com
n Cost to Income ratio is 40% and it plans to reduce it to 30% in next 2-3 years.
Sohail Halai
+91 22 4031 3425
n 74% of the customers are salaried with rest self-employed and average ticket size is
sohail.halai@antiquelimited.com INR1mn.
Prabal Gandhi n Collection efficiency for month of June-21 was 97% and gross stage 3 and net stage 3
+91 22 4031 3303 assets stood at 1.9% and 1.4% respectively. 90% of lending is to fully constructed houses
prabal.gandhi@antiquelimited.com and with low effective LTVs of <80% for 85% of its AUM, LGDs should be contained.
Rupeek
Rupeek is an asset-backed online gold loan company offering competitive
interest rates in market to the customers. Rupeek is the de facto leader in the
digital gold loans space disrupting the traditional brick-and-mortar lending
model offering zero processing fees, maximum loan to value, on demand
Represented by pickup and return of valuables. In the last fund raise in Mar21, Rupeek was
Mr. Srivatsan Sridhar valued over USD500mn. Rupeek disburses large ticket gold loans as a
SVP Business Head doorstep product in partnership with banks unlike any other financial
institution which disburses mainly via branch model. It has stayed away
from Tamilnadu and Kerala which are the largest markets for gold loans.
n Rupeek gives financial assistance to banks in building their gold loan book and is currently
in its 6th year of its operation. It operates in 28 cities and endeavors to expand to 50
cities in one year. It has tied up with 3 banks i.e. Karur Vysya, ICICI Bank and Federal
Bank and shall see 3 more banks joining in, in next 3-4 months.
n Product - It usually offers 6 to 9 months product but for large ticket sizes it offers 3-4
months tenure. It charges minimal 12% interest rate and can offer further lower interest on
lower LTV. Interest rate for bullet payments is 20-21%. LTV at origination is 69-70%
n It does annual disbursal of INR 40bn. 90% of book is with banks and its current AUM run
rate is ~2bn USD. 1/3rd of book pertains to customers paying timely interest payments,
1/3rd book pertains to customers who pay part EMIs but mainly do bullet payments and
1/3rd book pertains to customers doing only bullet payments. Avg. yield of book is 16-
17% and avg. LTV is at 72-73%
n Geography - 60% of book is North and West and 40% is south. In East, it operates
only in Kolkata. It has no presence in Tamilnadu and Kerala where penetration of gold
loans is very high.
n Customer - 60-65% of customers is self-employed i.e. shop keepers, self-employed
professionals or small micro business. Monthly income for customer is INR 0.1mn and
these are mainly bank rejected customers. Avg. ticket size is INR 0.3mn. 60-70% of
Sohail Halai
customers fall below INR 0.3mn ticket category.
+91 22 4031 3425
sohail.halai@antiquelimited.com n Usual delinquent rate was 1% but the recent growth of book seen during Co-VID can see
Vidhi Shah delinquency rate to go to 4-6%. Banks will see lot of NPAs/auctions in gold loan book in
+91 22 4031 3467
next 3 to 6 months.
vidhi.shah@antiquelimited.com n Industry Change - Two key industry changes are witnessed - 1) Unorganized players
Prabal Gandhi are shrinking especially in cities as they disburse large ticket loans in cash which is not
+91 22 4031 3303 preferable to customers and they are also facing GST issues and 2) people are moving
prabal.gandhi@antiquelimited.com to gold loans from other loan categories.
Niyo Solution
Niyo, founded in 2015 by Mr. Vinay Bagari (CEO) and Mr. Virender Bisht
(CTO) is a neo-bank, focused on creating banking that is simpler, smarter,
safer and cheaper products by leveraging technology and caters to consumer
side of the business. Backed by investors, by Tencent, Prime Venture Partners,
JS Capital and Horizons ventures, the company offers digital banking
Represented by products and services through partnerships with banks. At Niyo, plan is to
Mr. Ankur Choudhary offer range of product propositions, including prepaid cards, credit cards,
Head - wealth products and savings account plus debit cards, cross border transactions, virtual
accounts and virtual corporate wallets, through deep integrations with
multiple partner banks. The discussions were channelized towards macro
outlook of neo-banking and views shared by Mr. Ankur Choudhary was in
his personal capacity.
n What is a Neo-bank? Neo-bank is digital only, no physical branches, In India neo-
banks are front-end for banks, but gradually company like Paytm are looking to offer full
stack products and probably may receive small finance banking license.
n Why preferred? Neo-banks can disrupt banking as they are offer more focused, different
culture/structure, has higher risk appetite and closeness to Target groups (millennial)
which banks find it riskier to service. Neo-banks are getting preferred over traditional
banks because of a) better digital experience for customers, c) cheaper products and c)
offering of customized products.
n Investor's interest: Because of product proposition, seamless experience and robust
demand, a Russia based neo-bank name Tinkoff has become third largest retail bank in
Russia and is also profitable, thereby enticing strong investor interest in this segment.
Similar developments observed in Brazil, other countries as well.
n Nascent stage: Neo-banks are in nascent stage in India. Banks, therefore, are not looking
to aggressively acquire neo-banks, and instead locking partnerships.
n Revenue streams for neo-banks in Indian context, targeting to take away fee income
share from banks: Revenue for neo-bank are from a) interest income from CASA, b)
interchange fees, c) cross-sell of products like wealth products (digital gold, stocks) and
d) credit products. The traditional fee income streams of the banks would be under
attack and new age fintechs would become more aggressive in coming years. Account
aggregator concept would enable more data sharing of payment transactions to new
players which would further enhance their data analytical abilities and better cross-sell
opportunities. Speaker believes more than average ticket size of transaction, it is frequency
of transaction that enables cross-sell of the products.
n Risks to neo-banks in Indian context: a) regulatory risk, b) dependency on banks - as
banks are both partners and competitors. Therefore on the risk is break-up of partnership
between bank and neo-bank, but in that case, players like Niyo are ring fencing it by
adopting a shared customer model, i.e. neo-bank would have right to market products
even if partnership ends, though customers balance-sheet is on the banks platform. At
current stage, storage value, deposit and full suite provided by banks are high, but PSU
ex- SBI has lost market share. So once the space opens up there could be more competition
but storage value would remain a critical part of the business.
n RBI's stance: RBI does not have license for digital banking. But instead is following a
gradual model wherein they allow license for payment bank initially, followed by license
for small finance bank and so on. Onus of consumer data security is more on banks but
Sohail Halai neo-banks are also equally responsible. Speaker believes localization of data (recent
regulation) is one of the major regulatory actions taken by the RBI for this industry and
+91 22 4031 3425
others may follow on data security side but may not pose a big challenge.
n Niyo: Company has opted for customer sharing model, implying in case partnership with
Prabal Gandhi bank ends, company still has right to market products to bank customers. As a case in
+91 22 4031 3303 point, account aggregators are allowed to even tap into transactional data of bank
prabal.gandhi@antiquelimited.com customers, with whom they have partnership of aggregator nature.
Vidhi Shah n Niyo is mostly second bank account for customers and not the primary one. Customers still
want to have traditional banks for deposits rather than neo-banks. Niyo has, therefore,
+91 22 4031 3467
partnered with Equitas for opening savings account, zero balance and offering interest
rate of 7%. These accounts sit on balance sheet of Equitas.
Bank of Baroda - Digital Head*

Bank is one of the pioneers in digital progression in the PSU lot. Amid rise in
internet-based banking, bank significantly upped its presence in the digital
banking by forging relevant partnerships, digitizing processes. We hosted
Mr. Akhil Handa, Chief digital officer of Bank of Baroda. He joined bank in
Represented by 2015, as advisor to then MD & CEO and as head of fintech and new business
Mr. Akhil Handa initiatives. He has been recently promoted as Chief Digital Officer and has
Chief digital officer been/is digital strategist. Discussion mostly revolved around industry, path
of digital journey.
n Bank of Baroda is ranked high in the quarterly index, published by ministry of technology,
driven from combination of various technology parameters. It was among the first investor
in Bill desk, and exited investment in 2019, with handsome returns.
n Industry - Banks are evolving on the digital path and depending on their digital maturity,
each bank will have different path in terms of upgrade, innovation and processes.
Owing to rapid adoption of digital platforms, product accessibility and features require
continuous improvement and customization. And eventually industry would be visibly
split into a) strong and thriving players and b) others (have not).
n Outside metro/top cities, full digital journey is improving but the pace is slower than
metro/top cities. Therefore hybrid models are still required, and fleet on street is relevant
for players.
n While banks will continue to dominate industry in terms of their service, appearance of
smart apps could mean banks would have to be pro-active in occupying/retaining
dominant wallet share of customers in the medium term.
n Expert cites regulator is open to banks' partnerships with fin-techs. Partnerships - exclusivity
contracts are less likely and banks may prefer multiple partnerships. White-labeling - is
fintech branding their product by associating product with partner bank. Risk for bank is
in case fintech change business course or shut shop (typically it has been seen that
business approach followed today is eventually altered/modified with time by fintech),
Sohail Halai
customers blame bank. A reverse case was seen in Yes bank and PhonePe partnership,
+91 22 4031 3425
sohail.halai@antiquelimited.com when moratorium was imposed on Yes bank, PhonePe overnight had to move to another
partner for UPI transactions.
Prabal Gandhi
n Typically it has been observed that regulatory norms and impositions occurs mostly post
+91 22 4031 3303
prabal.gandhi@antiquelimited.com incidents.
Vidhi Shah n Banks investment in digital? Banks have ramped up their digital spends and most of the
+91 22 4031 3467
banks have digital spends percentage equivalent to high-single to mid-teens of their
vidhi.shah@antiquelimited.com operating profits.
Represented by
Mr. Ashish Savani Expert: InsuranceTech
We hosted Mr. Ashish Savani in our Indian Internet conference. He is an
expert in technology and business transformation in US insurance sector.
He was with Zurich insurance for more than seven years in strategic
initiatives and technology transformation and prior to that was with Wipro
for eight years as Business Consultant. Mr. Savani, shared his insight on
'how technology is transforming insurance' - sales, marketing, claims
settlement and actuarial functions and the role of various Indian IT players.
Key takeaways on tech spending by Insurance players
n Large part of spending by insurance players is towards enhancement of the technology
landscape with lot of investment in developing platforms and services.
n Industry witnessed significant pickup in life insurance segment post the outbreak of
Pandemic. Due to the pandemic there has been a reduction in claims in areas like road
accidents but the claims like business interruption has gone up. Overall, insurance segments
have not done well in 2020 but have seen a good jump in 2021. Weather related
claims have also increased.
n Most of the insurance companies rather than relying on single vendors are working with
multiple vendors. Clients are now looking for more of a kind of value addition by IT
services providers rather than legacy work.
n On the personal insurance side the process is much simpler but on the commercial side it
is complicated as multiple states in the US have different rules. So IoT, BoT, AI based
solution are picking up demand, as it would be beneficial for insurance players if these
AI based solutions can reduce the claim going into litigation and overall claim cycle.
n On the ITO side, shifts are now happening towards the skill set with better pricing. There
is pent up demand across the industry and shortage of skills is a major challenge for IT
services companies.
n On an average, the rate of US insurance has been 2-5%, and this has grown in the last
couple of years and ~10-15% in the last couple of quarters. Industry expect these rates
to continue to grow for a few more months.
Vikas Ahuja
+91 22 4031 3407 n In the last decade, for Indian IT companies demand was more on headcounts but now
vikas.ahuja@antiquelimited.com companies like salesforce, workday are disruptors as they are not headcount driven
rather providing differentiated services and skill sets. So now demand is more for niche
Ashish Agrawal
+91 22 4031 3420
solutions which depend much more on differentiated services and skill sets rather than a
ashish.agrawal@antiquelimited.com headcount.
Digit Insurance
One of the fastest growing and profitable (under IRFS accounting) general
insurance company. Founded by Mr. Kamesh Goyal, one of the Indian unicorns
and has recently raised capital of USD200mn at valuation of USD3.5bn. Backed
by Fairfax, company has processed 0.4mn claims so far, and covers general
insurance of 20mn customer across various streams. Company has digitized
Represented by
Mr. Kamesh Goyal
all processes and saw robust growth in FY21 driven by Covid health insurance.
Founder & Chairman Along with distributing traditional products such as motor and health
insurance, Digit Insurance also comes up with many innovative products such
as travel and mobile insurance which focuses on getting the millennial in the
insurance sector. Started its business operations in 2017, it is already the
second best insurer in terms of combined ratio in industry.
Industry
n General insurance industry has been growing at 13-15% on consistent basis. Last year
the growth was 5%. But in Q1FY22 the rate has come back to 10-11%.
n Motor TP rates have not increased in 2020 & 2021 which usually has seen 6-7% increase
in past years. Health insurance has grown massively because of Co-VID.
n Low interest rates don't make general insurance business attractive. For eg. Switzerland
where interest rates are negative, one can make RoE of 13-14% with combined ratio of
92-93%. In India, with current interest rates and combined ratio of 105%, it can make
RoE of 15%.
n Post Sep20, insurance companies got aggressive and saw dip in rates in motor and
group health insurance while cost of acquisition went up.
n In H2FY21, one saw expense ratio going up and loss ratio coming down. But in FY22,
one shall see both expense ratio and loss ratio to be high as motor claims have normalized
and health claims have increased.
n In health insurance, claims size has increased by 15-20% due to increase in Co-VID tests
and usage of equipment's etc. has also increased. See loss ratio to be higher by 10% for
this segment.
Company
n Revenue was INR 1bn, INR 12bn, INR22.5bn and INR 32.5bn for FY18/19/20/21
respectively. During FY21 big growth came in fire insurance as motor insurance was slow
and launched health product in Feb21. It is the only insurance company to offer Co-VID
insurance, however Aug21 onwards demand for this product has come down.
n In FY22, motor insurance will be 70% (75% in FY21) and health will be second biggest
at around 10-12%.
n Due to change in accounting in IFRS, where you can defer cost of acquisition from earlier
recognizing upfront has led to improvement in combined ratio by 4-5%. It makes big
difference only to companies who see strong growth i.e. more than 20% growth.
n In terms of asset allocation, 97% is in debt and it hasn't lost any money during IL&FS crisis.
Going ahead share of equity investment can increase to 8-10%.
n Company takes customer rating very seriously and encourages them to comment on
Vidhi Shah
social media platform about their experience.
+91 22 4031 3467
vidhi.shah@antiquelimited.com n Apart from traditional insurance products, company keeps coming up with newer products
to attract millennial. It had earlier come up with travel insurance which takes care of
Sohail Halai cancellation of tickets or flight delays but due to Co-VID this segment was impacted. They
+91 22 4031 3425 also offer mobile insurance wherein they cover screen coverage etc.
n Entire business model is based on partnerships and they'll never be direct. Many
Prabal Gandhi aggregators show that they are direct, but they aren't.
+91 22 4031 3303
n They are channel agnostic and don't take decision for customer which channel they
should use to do business with them.
Vitraya Technologies
Vitraya Technologies Private Limited is building out a tech platform to enable
automated, real-time payouts and claims settlement between hospitals /
healthcare providers and insurers who offer health insurance products to
consumers and businesses. The technology platform utilizes smart contracts
and blockchain architecture to enable this automation, disruption in TPA
Represented by industry. The company was incorporated in Mohali, Punjab in 2019. It has a
Mr. Srinivas three member founder team Mr. Mrinal Sinha (CEO), Mr. Srinivas Kotamarthi
Co-Founder &
(Head - Products) and Mr. Ankur Shrivastava (Head Technology) who had
Head of Products
vision to revolutionize health insurance claims settlements through holistic
solution and has partnered with Star Health and Max Bupa in health insurance
space and 400 hospitals. Have a roadmap to capture 25% of claims volume.
The company was angel funded and just closed pre-series A transaction.
n Globally health care spends by consumer is USD7.3tn and claim administration cost is
USD700bn. Vitraya technologies has extensively studied Indian Market and believes
loss due to current inefficiencies could cost INR430bn by FY23e to the ecosystem (1)
INR280bn to insurers (adjudication error: INR130bn+, operation cost: INR49bn and
customer churn cost: INR98bn) and (2) INR150bn to hospitals (disallowances: INR51bn,
working capital cost: INR30bn and bed productivity cost: INR69bn). Problems (1) insurers:
human errors cause inefficiencies, overbilling by hospitals needs to be looked manually,
customer dissatisfaction if authorization is delayed (2) patients: delays due to authorization
where delays could be 6-12 hours or more and in case of pre-planned hospitalization
buffer of 5 days to a week is advised and (3) hospitals: customer dissatisfaction and
manual efforts at the time of admission and discharge causes delays, sometimes by 3
days. Insurer may give final authorization letter but hospital to collect money from insurer
it may take three weeks to 10-12 months.
n Solution: (1) policies which has become digitized becomes the base of settlement; company
has built a platform (which has Vitraya's policy markup language) through which any
kind of health insurance policy can be digitalized - it recognized by Swasth (government
owned organization) and part of standard proposed by Swasth for national digital
health mission, (2) Automatic clinical verification, e.g. COVID claims has to verify if SPO2
levels are <92, fever for more than three days as per ICMR guidelines, (3) Digitized
tariffs, (4) Transaction blockchain and (5) developed audit engine for government schemes
(PMJMY, Punjab Ayushman Bharat) to avert frauds.
n They create algorithms and rule engines by converting all the data (including handwritten
ones) in digital form (with certain accuracy percentage) to arrive at a decision on settle of
claims and amount that is accepted, providing reasons for acceptance/rejections.
n Company is currently working with Star health and Max Bupa, and looking for opportunities
to work with other standalone health insurers including state-owned ones. At star health,
company has started with auto-adjudication, pre-authorization of claims whereas at Max
Bupa has started with digitalizing/adjudicating reimbursement claims and soon would
auto-adjudicate cashless claims at Max Bupa. Have a target (roadmap) to reach up-to 50%
of claim volumes of these insurers over a period of 10-12 months, i.e. 25% of claim industry.
n They earn 1% of claim value which has the potential of going to 2% once they authorize
the entire claims process and increase the use of technology.
n Company provides solutions for individual claims only, but plans to bring group claims
Sohail Halai under its ecosystem.
+91 22 4031 3425
sohail.halai@antiquelimited.com n They have tied up with 400 hospitals and plan to reach to 1000 number within 4 months
and eventually tie up with 5-6K hospitals. The health insurers i.e. Star and Max Bupa are
Prabal Gandhi helping them with the expansion. Their interactions/experience with hospitals gave them
+91 22 4031 3303 a clear sense that this is a problem of hospitals too and solution would reduce working
prabal.gandhi@antiquelimited.com capital cost of hospitals. Launching new product Prime hospital information system, HCX
(similar to UPI business in payments) which will help to digitize hospitals too. Thus, these
Vidhi Shah tie-ups will also generate revenue.
+91 22 4031 3467
n They depend on technology on API, integrations, developers, solutions and software and
use ICD coding's. A longer term aspiration is to go global as well.
Zerodha
Zerodha is a broking platform with a flat fee of INR 20 that was aimed in
capturing the active traders. With a decade on and 6.5 million users, they
are the largest brokers in the country and also largest worldwide by volume
of trades. Zerodha has been stellar in FY21 and it is one of the rare companies
Represented by to surpass INR 26bn in revenue with nearly INR 11bn in profit without any
Mr. Somnath Mukherjee external funding. Zerodha was the first broker in Indian market to come up
AVP Business with delivery trading at zero cost and this eventually changed the entire
landscape of broking industry. From gaining customers via their education
platform to educating them about algorithms, it opened doors for all who
are interested in stock markets.
n Zerodha started broking business in 2010 when other brokers were venturing in other
businesses. After joining of Mr. Kailash (CTO) in 2012, many of their business functions
were getting automated up until 2015.
n In 2015 they started with their own broking platform i.e. Kite and also made delivery
trading at zero cost for customers since delivery based trading was just 3% of revenue.
But this change of strategy caught media's eye and Zerodha came under the spotlight.
In 2016, company started with Zerodha Varsity which is educational platform which
gained lot of viewership and in 2017, aadhar KYC helped them onboard customer in 5-
10 minutes and also all products and pricing fell in place.
n From 2017 to 2021, it gained a lot of customers from 0.2mn to now 6.5mn. Active
customers are 4.5mn. 97% of accounts are opened online. It has employee base of
1,100 and AUM size is INR 133bn of stocks and INR 170bn of MF.
n For Zerodha, per day trades have increased from 5-6mn to 10mn in a year. The break-
Vidhi Shah
up of per day trade is 50% delivery, ~20% futures and remaining is options. Commodity
+91 22 4031 3467
vidhi.shah@antiquelimited.com trading barely constitutes 1% of the trading.
Sohail Halai n Revenue and PAT for FY21 is INR 26bn and INR 11bn respectively. Revenue mix is 65%
brokerage, 10-15% float income and 20-25% other charges such as annual maintenance
+91 22 4031 3425
sohail.halai@antiquelimited.com fee, referral charges, depositary participant fees etc.
Prabal Gandhi n Apart from broking, it had applied for NBFC license which received approval in 2018
+91 22 4031 3303
and it has applied for AMC license which should receive approval by 2022. They aren't
prabal.gandhi@antiquelimited.com doing margin funding yet, but are planning to start in next 1-2 years.
Share India Securities*

Share India is a fast growing financial service listed conglomerate with
~INR17bn market cap. Company reported consolidated revenues of INR 4.6bn
in FY21 and profits of INR 0.8bn. Company spans products across 729
branches across 18 states, along with digital capabilities. It has 16K+ active
Represented by clients and it is looking to expand its services by tapping into Tier 3 cities,
Mr. Kamlesh V Shah enabled by its digital prowess and architecture. Within a short span of time,
Managing Director Share India has grown from traditional stockbroker to a hi-tech broking
company specializing in derivative trading strategies and growing from
Mr. Sachin Gupta
strength to strength in diversifying its revenue stream. Robust technology,
CEO & Whole time Director
low latency trading platforms and deep understanding of market wide
technology infrastructure enables them to offer customized and holistic
solutions to customers.
n Share India caters to 16.5K customers including institutions, HNIs and individuals and
has an employee base of 1,500 of which 30-40 people cater to technology team. Of
total 729 branches, 382 are present in Delhi and 176 are present in Uttar Pradesh.
n Total Revenue for FY21 stood at INR 4.5bn of which 30% pertains to clientele income. It
envisages increasing this mix to 35-40% by FY22. Of the remaining 60%, 30% will
pertain to strategic business and other 30% shall be income from its subsidiaries businesses.
n In FY22, it plans to increase its presence in retail broking segment and for that it is in final
stages of acquiring a software company which shall immediately help in building tech
platform in order to garner the retail clientele.
n On sourcing front, it plans on marketing itself on TV and digitally by hosting or teaching
educational aspects of broking. It has no intention of burning cash unlike some other
Vidhi Shah players.
+91 22 4031 3467
vidhi.shah@antiquelimited.com n It is constantly working on new technologies, developing new platforms and building
new strategy based infrastructure to provide algo- based trading to retail clients. It envisions
Sohail Halai empowering retail investors with technology by giving them superior UI/UX performance
+91 22 4031 3425 and experience.
n It has ~8% market share in F&O, 10% market share in currency derivatives and ~15%
Prabal Gandhi
market share in commodity trading.
+91 22 4031 3303
prabal.gandhi@antiquelimited.com n On implementation of the margin rule, it hasn't seen any impact on volumes.
Escrowpay
India's First Digital Escrow payments platform, set up to protect interest of all
stakeholders in any agreement, single handedly solving trust deficit
problems involved in transactions. As an open architecture platform company
offers customized solutions across a diverse range of use cases. Be it high
Represented by value, once in lifetime purchases, milestone based transactions, long dated
Mr. Ashwin Chawwla sales, or even recurring regular transactions, thus providing solution in
Founder and CEO contingent based transactions by creating a safe, secure, transparent and
digital escrow centered ecosystem of payments.
n Industry: Banks have welcomed the startup as opening an escrow account takes 2-3weeks
and involve heavy regulatory complications. Apart from regulatory/delay challenges,
banks don't have wherewithal to customize products, therefore, making growth of fintech
like EscrowPay imminent.
n Tailwinds for the industry? Further the industry is helped by regulatory decisions such as
shifting unutilized CSR funds into escrow a/c, etc., this has resulted into robust demand
for opening of escrow a/c. As per company, market size estimates for this solution could
be USD1trn in coming years vs. USD489bn in Jan'21.
n Business model: Company offers escrow services, in partnership with banks, to any kind
of transaction parties. Transaction parties can set up an escrow account, especially in
real estate deals, rentals, venture deals, luxury buying, etc. Upfront money at the start of
transaction can be placed in escrow account, and depending on success/failure of
deal, money gets distributed among the concerned parties, as per the norms of initial
agreement, resolving trust issues and avoiding litigation on forward dates.
n Company has partnered with ICICI bank, Axis bank and Yes bank, and is in discussion
with 10 more lenders for tie-up.
n Democratize and recurring: Company is looking to democratize even INR50k transactions,
Sohail Halai
and has smartly shifted from doing large deal transaction (real estate) to small ticket size
+91 22 4031 3425
sohail.halai@antiquelimited.com transactions. Small size transactions are found to be of recurring nature. Today, around
99% of business is of recurring nature for the company. Company generates revenue by
Prabal Gandhi charging transaction fees.
+91 22 4031 3303
prabal.gandhi@antiquelimited.com n New products: Company recently launched escrow services on WhatsApp in beta version,
and full launch is expected in upcoming months.
Vidhi Shah
+91 22 4031 3467
n No income on float: Company clarified that amount kept in escrow, cannot be used as
vidhi.shah@antiquelimited.com float by company or banks, as per RBI norms.
Kredent Infoedge
Fintech, education startup Kredent InfoEdge began its journey as a platform
to provide education related services on capital markets in 2014 and
expanded to research and analytics. The company provides three app
Elearnmarkets (beginners), StockEdge (investors) and has innovated a
Represented by Stockedge social platform where investors can comment their opinions on
Mr. Vivek Bajaj stocks and markets. Recently Kotak Securities acquired ~10% of the company
Co Founder valuing the company at ~USD1.3mn and partnership and investment could
help the company with faster marketing abilities and bring about scalability
in the business. Other veteran investor to the businesses that Kredent is
pursuing.
n Kredent Infoedge is a financial technology company, focusing on training people through
learning and analytics platforms. The company offers three brands - i) elearnmarkets (e-
learning platform focusing on training users), ii) StockEdge (research & analytics platform
for stock market investors) and iii) StockEdge Club (social marketplace platform for investors
and traders).
n It has mainly focused on top 10 cities uptil now and plans to penetrate further into next
10 cities and so on.
n Stockedge has built AI/ML which runs through the searching habits of the user and
provides stock recommendations, outputs, news and views based on user's interest.
n 70mn users are account holders. Of this verified users are 2.6mn and paid users are
0.1mn. Based on the discussion while both the e-learning app is witnessing good adoption,
StockEdge performance is better in terms of conversion of a registered user to paid user
and ARPU is INR4,911. Last year, company had launched it services on web platform,
however 70% of its users are still comfortable with mobile. Company offers 2 paid products
under Stockedge and subscription fees for basic membership is INR400 (~INR 4,800
annually) and INR1,499 (~INR 18,000) for premium membership. On the other hand
Elearnmarkets has ARPU of 2,167. Company also offered academic courses/training
Sohail Halai programs and had crossed over 10,000 students with 20+ certified courses by NSE and
+91 22 4031 3425 MCX.
n Company has launched a new platform wherein user can transact through any of its
Prabal Gandhi preferred broker. Within this space, investment by Kotak securities has also brought about
+91 22 4031 3303 partnership benefits to both the entities viz. Kotak Securities would provide its existing
customer base offerings of Kredent infoedge on its platform and in-turn Kredent Infoedge
Vidhi Shah would help Kotak securities augment its retail customer base. Revenue would be shared
+91 22 4031 3467 and Kredent Infoedge would earns fees from other brokers whenever the user transacts
vidhi.shah@antiquelimited.com via their platform.
Infoedge*
Info Edge is the one of the largest listed internet technology player in India
with interests in varied Industries. The company directly operates platforms
which provide an online presence across segments like recruitment, real-
estate, matchmaking and education. On recent trends, all business have seen
strong recovery from the second wave of Covid. Recruitment business has
benefitted from the strong hiring trends in IT/ITES Industries. 99acre segment
has also witnessed recovery in both traffic and monetization since the severe
hit it witnessed in May. Management maintains its aggressive stance in the
matrimony segment, and we believe the segment can benefit from the pent-
up demand for services. Recruitment segment (Naukri) has been InfoEdge's
mainstay since its inception, providing cash flows to invest in new segment,
products, and other verticals. In past years, it started with small angel
Represented by investments in early startups, while has slowly expanded its breadth. It is
Mr. Chintan Thakkar now developing a more broad-based investment vehicle by investment via
Executive VP - Finance an AIF route.
Recruitment Business: Strong hiring trends
Segment has seen strong traction in billing - IT/ITES is showing positive trends and the most
significant contributor to be overall numbers. New products & Acquisitions like IIMJobs and
Hirist have also contributed to growth. Segment saw very high renewal rates and also seeing
realignment of renewals; last year, a lot of companies deferred annual renewals and as a
result lot of companies which were supposed to renew in 1Q, renewed in 2Q-4Q and their
renewals will now come in this Q2-Q4. Tech and product team successfully launched three
new products in the last three or four months like Talent Pulse; Launched mobile branding
solutions still then very recently Company used to offer the branding solutions on desktop, but
now Company has started offering mobile branding solutions to companies as well.
99acress: Strong recovery across after wave-2
Segment Billing during 1Q was much below expectations, hit by Covid. The monetization of
99acres was severely impacted particularly in the month of May. Since then, the segment has
witnessed recovery in both traffic and monetization and the external environment on the real
estate business has also turn positive. Hope to be on track in 99acres and across all segments,
new homes, resale, rental and commercial. Segment saw solid recovery in Q4 in 99acres but
Q1 was again hit due do the COVID. Segment Billing during 1Q was much below
expectations. In Q1, saw a modest recovery in June and traffic is now back and all the
metrics are at all-time high now in the segment.
Jeevansathi: Cash burn to continue
In Jeevansathi, Company continues with strategy to invest in brand and with an improvement
in user experience. Company continues to focus on the Hindi speaking belt in North and
West India. While business is not profitable today due to aggressive stance, segment could
command 30-35% Ebitda margin in long term.
Shiksha: Seeing good traction
This segment is exhibiting strong growth in billing and collections in Q1 with stronger competitive
position, focused on student centric content and product improvements that helped take up
traffic. Company continues to invest in making content more comprehensive and most student
friendly. We believe that this online education information services segment is still at a nascent
stage of its online transition and is therefore likely to remain under-development for a sometime.
Investments
Prateek Kumar
Infoedge is recently seen investing in the late-stage Startup Companies, however Company
+91 22 4031 3440 maintains focus on Early stage investing. In past, Company has seen a small amount of
prateek.kumar@antiquelimited.com investment to help take a decent stake in startup. For now, management believes that there
Saurabh Dugar
aren't too many targets which are acquirable. Valuations are going up every quarter and It's
saurabh.dugar@antiquelimited.com a harder market to acquire.
Matrimony*
Matrimony.com is an Industry leader in intensely competitive online
matrimony segment. Company has 2 operating segments 1) Matchmaking:
Online matrimony service (95%+ of the revenues) and 2) Marriage Services
to complement online matchmaking business. Business has continued to
Represented by see traction in past 12 month, inline with management guidance, with focused
Mr. Sushant Pai effort on technology such as AI, insights through data analytics, and strong
CFO tele services which has aided in enhancing user experience and converting
them into paid subscription. Competitive intensity remains high in the segment
and so does the Adspend by the Company/Industry. While intensity of
Adspend will remain dynamic going forward, management believes that
incremental revenue growth will come at a lower expense and that there is
huge scope of operating leverage in the business model. It continues to target
double digit billing/revenue/earnings growth.
Double digit growth in billing
1QFY22 was a good quarter as billing in Matchmaking segment grew 29% off the soft base.
During 2Q, July has remained strong, continuing from the strong trends seen in June; August
is seasonally impacted by inauspicious days. Matrimony's billing continues to be steady or on
an improving trajectory on the back of marketing efforts, improved/newer products and
customer-focused pricing (via data analytics) which has resulted into increasing leads, higher
registration of user profiles and conversions into paid profiles. Company continues to target
double digit growth in billing/top line in near to medium term. Management believes that,
over medium to long term, segment can deliver CAGR of 15-20%.
Improvement in margins driven by Operating leverage
Company reported multi-quarter high margins in 1QFY22 on the back of improved Topline
and lowered expenses. Management believes that ex of Adspends, the segment is high
gross margin business. Further most of the EBITDA is converted into cash. Incremental revenue
growth will come at a lower expense and that there is huge scope of operating leverage in
the business model - which could drive margins higher. Company targets 30%+ margins in
the matchmaking segment, inline with what it has achieved in FY18.
Competition is not relenting
Competition (Jeevansathi and Shaadi.com) continues to spend big on marketing expense
even after incurring losses. Management indicated that even in the north and West market
Company would be slightly profitable, but not as much as the South market. M&A is a
strategic initiative for the company - will keep looking at the candidates - in both matchmaking
and marriage services segments; however candidates are far few in the space.
International Foray
Company has started work on incorporation of operations in markets of Sri Lanka and
Bangladesh and business should be up and running in a month's time; Though, management
isn't expecting any meaningful contributions from these for FY22. These markets don't have
any major matrimony players so markets need to be developed.
Other Highlights
(1) An Average customer stays on the platform for 9 months. (2) 70% of the customers take 3-
month package on the portal. (3) Bharat Matrimony contributes 55% of revenue for Company,
Prateek Kumar Elite segments contribute 15% of revenue and 30% come from the Community matrimony
+91 22 4031 3440 websites. (4) On an average, 75% of customer who come on website are male while 25%
are female. (5) In the dating (Industry) segment, Company is seeing better traction now;
Saurabh Dugar however, matrimony business doesn't seem to be impacted due to same; Positioning for
saurabh.dugar@antiquelimited.com dating segment is also a bit of challenge.
EaseMyTrip*
Easy Trip Planners ("Easemytrip") is ranked second among the Key Online
Travel Agencies in India in terms of booking volumes. While Company started
as a B2B business, today 93% of business comes from B2C segment while
7% comes from travel agents and corporates. Company has consistently
Represented by been gaining market share as it boasts of having the option of "No
Mr. Prashant Pitti convenience fees" on booking tickets unlike its competitors. Consistent growth
Promoter & WTD in business and profitability is attributable to the technology driven
operations and low operational costs. Post the Covid 2.0, which impacted
1Q, Company is seeing sharp recovery in Gross Bookings. Company is
seeing strong traction in its Non-Air segment as well benefiting from customer
stickiness on the portal.
Strong focus on profitability
Company has not seen a loss even for a quarter since inception and bootstrapped all the
way till IPO. This is led by a strong focus on cost line items, especially below the gross margin,
as Company has managed to keep the expenses at bare minimum. Management indicated
that gross margins for Company is line with Industry average at 10-11% for FY21, while
employee costs and other overheads are significantly lower, which has helped Company to
report stronger profitability versus peers. Company has spent an aggregate INR800-850mn
on marketing in 13 years of existence; Company is able to container marketing and sales
promotion - due to cross selling abilities.
Recovery in Gross Bookings
Gross Bookings for the Company have sharply recovered in July to INR2.25bn, nearly 63% of
the booking done in 1QFY22 (at INR3.6bn). This compares to bookings in 4Q at INR9bn.
Bookings have recovered even sharply in the month of August. Revenge travel is one of the
major reasons where Company is seeing more travelers now opting to travel as and when
they get a chance to go out.
Dependence of Airlines on OTAs have significantly increased in past year
This is led by increased booking from Mobile versus desktop. This situation is expected to
continue. Four years back, 85% of searches were happening on desktop. Now 87% of
EaseMyTrip searches are happening on mobile, either mobile web or application. This has
helped increase dependence on OTA significantly. Company has consistently been gaining
market share as it boasts of having the option of "No convenience fees" on booking tickets
unlike its competitors. However, if a customer sings up for discount coupon on EMT, the
convenience fees is paid by customer - this also adds up to profitability of Company.
Non-Air Segment
In terms of business mix, 95% of business comes from Air-ticketing and 5% is from Non-Air
business. Company is seeing huge growth in Non-Air segment benefiting from customer
stickiness on the portal. EaseMyTrip work with 23 aggregators and doesn't work directly with
Hotel; it picks up best prices available from the aggregators. For the non-air side, Company
have plan to grow inorganically as well.
Other Highlights
(1) Company is doing multiple tie-ups with brands like Cultfit, Lifestyle to sell each other's
product and leverage brand strength for both the parties. (2) Unclaimed Credit (UAC) should
be seen as part of revenue from operations; Customers have a 2-year option to make claim
Prateek Kumar for return. It remains as liability in the books and turns into revenues after 2 years. This is
+91 22 4031 3440
unlike Competition who give customers only a period of 3 months for the refund - and thus are
able to book cancellation fees in the Operating income. (3) Introduced new feature on portal
Saurabh Dugar recently i.e. when a Customer cancels a domestic ticket online, he is eligible for seeking full
saurabh.dugar@antiquelimited.com
refund including money deducted by airline, if the ticket is canceled for the medical reasons.
Propstack and Zapkey

Propstack is India's leading Real Estate data, analytics and workflow
solutions platform and was developed in response to a need for greater
market transparency. Propstack provides predictive and prescriptive analytics
which forms the core of efficient and smart decision making. Post verification
of the granular data sourced from various government sources, Propstack
Represented by
Mr. Sandeep Reddy provide trends & insights through their cutting-edge analytics suite. Zapkey
Co-founder is a B2C targeted platform which is primarily focused on secondary sales.
The company helps individuals in better price discovery of the property, based
on actual transactions. They serve both the buyer and the seller and earns
transaction fees.
Propstack
n Propstack was started when the company realised early that a lot of work was being
done on the classified side, but none on the data side, to cater to the various institutional
stakeholders: Real Estate companies, builders, Lenders, etc.
n Propstack offers data analytics solutions and information build around publicly available
property registration data. The property registration data is public but very cumbersome
to aggregate as it is a state subject and presented in various language and formats.
They started with the office segment but eventually moved into warehouses, residential
and retail. Company also caters to the developer loan segment. They are trying to create
a tech enabled home loan product on ready properties to make mortgage process faster
and seamless for banks and decrease TAT to up to two days.
n Company leverages sizeable datasets to create analytics and insights that help clients
make better decisions. (1) Office platform offers Propsense (quarterly snapshot), Portfolio
Analytics, Catchment Analytics; (2) residential platform offers market insights on registration
volumes, resale %, price movement, unit configuration, loan velocity, etc. (3) mortgage
platform offers market intelligence around mortgage pricing, lender activity & refinancing
opportunities
n Company has an investment in Strata Prop which offers fractional ownership in Commercial
Real Estate (CRE). The idea is to offer ownership to earn yield income with minimum
investment of INR25lacs, whereas the company will manage all the administration around
this. These real estate projects are owned by smaller/grade B developers where
monetization via REIT is not possible.
Zapkey
n Zapkey is a B2C targeted platform which is primarily focused on secondary sales.
n The company helps individuals in better price discovery of the property based on actual
transactions. They serve both the buyer and the seller and earns transaction fees.
n Housing.com, 99 acres, magicbricks are the main competitors.
n The company is primarily focusing on the top Nine cities in India initially.
n Funding will help grow Zapkey particularly as it would require higher marketing spends
being B2C.
n Zapkey is also working on making 3D models of the properties for ease of the customers
and to ease the buying process, this would be followed by a physical inspection of the
shortlisted properties.
Current Real Estate market
Prateek Kumar According to the management, the sector is doing better than pre-covid period. For the
+91 22 4031 3440 Maharashtra market, lot of doubts were there on performance once stamp duty subvention
prateek.kumar@antiquelimited.com got over. New launches are going to pick up, while there is a small price increases in ready
Saurabh Dugar to move in segment. In Office segment, majority of the IT companies have renewed their
saurabh.dugar@antiquelimited.com contracts. Next 3-6months will help better understand on new lease scenario.
Dhani Services
Dhani Services is a consumer business that operates through its app Dhani
and provides digital healthcare and digital transactional finance to its
customers. On healthcare front, Dhani provides its customers with healthcare
access over instant video calls with doctors. Dhani Doctor is supplemented
Represented by with Dhani Medicines in medicine delivery segment. On the financial services
Mr. Nikhil Chari front, customers can choose from a suite of products including managing all
President Health payments via the Dhani Wallet or Dhani Card, access to personal finance via
loans and the Dhani Credit Line, medical insurance etc. The platform offers
monthly subscriptions for product offerings like Doctor, Pharmacy, Health365,
One Freedom Card, Credit, Insurance, etc.
Significant Scaleup in Subscriber and business in past 15 months
n Market Size: Annual revenue TAM today in terms of healthcare and transaction finance
part is to the tune of USD60bn. Currently there are 500million Indians are registered with
the credit bureau. Among this only 60million have access to transaction power.
n Dhani Services (erstwhile named Indiabulls Ventures Limited) provides consumer business
that operates through its application "Dhani". The Company offers digital healthcare
and transactional finance offerings. The platform offers monthly subscriptions for product
offerings like Doctor, Pharmacy, Health365, One Freedom Card, Credit, Insurance, etc.
n Scale up of Subscribers: Company has demonstrated scale-up of paying subscribers
& activity at rapid pace in past 15 months. Company is clocking total customers of 35mn
as of Aug-21 and paid Subscriptions as percent of total customers stand at over 8%. Paid
subscription was launched in 1QFY21.
n Subscriber mix: In terms of subscriber mix, nearly 50% of paid subscribers pay for
Super Saver pack which includes Monthly Subscription for cash back plus doctor: INR200,
INR300, INR350 60% off on medicines, personal doctor available instantly, anytime
through video consultation on app and 5% cashback on all spends. Nearly 40%
subscription is for One-Freedom App.
n One-Freedom App: This app (launched in Nov-20) allows customer to set up credit
limit using Dhani App. You can use this card like your debit/credit card for making any
payments and repay later in easy flexible EMI's. Dhani OneFreedom instant credit line
card can be used at any online platform, retail outlet, restaurant, or petrol pump where
Rupay cards are accepted. One freedom is BNPL product.
n Revenue run rate: Company currently has 3mn paying subscribers with ARPU of
INR136 and targets 7mn paying subscribers by March 2022 with ARPU of INR150. This
would imply annualize Revenue run rate of USD170mn. Further, targeting 15,000 deliveries
per day (currently at ~4000+ deliveries per day) by March 2022, which would imply
Annualised Revenue Run rate of USD100mn. This would mean a total annualized Revenue
run rate of USD270mn by March-2022
n Unit economics: As per management, combo subscription products offer average
margins >70%. The E-pharmacy is gross margin positive on each package delivery.
n Company entered pharmacy delivery segment in CY21 only and scaled deliveries to
~3750 per day as of August-21. Dhani provides 1-hour delivery to customer. This will
help differentiate from the competitors and help attract customers that form 80-90%
volume from acute segment. 65% of market is acute product. In the Virtual primary care
segment, the company has in-house set of 200 doctors on the payroll and company takes
Prateek Kumar
+91 22 4031 3440
quality of care delivered.
prateek.kumar@antiquelimited.com n User Profile: 56% of paid subscriptions are from GenY and 31% of our paid subscriptions
Saurabh Dugar are from GenZ indicating interest from young age people for the Company's subscription
saurabh.dugar@antiquelimited.com products. 80% of paid subscriptions are for flagship products of OneFreedom and Doctor.
CollegeDoors
CollegeDoors is a B2B Edtech platform aimed at enabling various entrance
exam coaching classes and aspirants achieve better results through Analytics
and Insights. It is done by having the aspirant take practice tests just like
real exam with most relevant questions and difficulty of questions spread in
Represented by a manner that real test practice happens. It is aimed at helping JEE (Main),
Mr. Kamaldeep Singh AIIMS, BITSAT and NEET aspirants achieve better results through Analytics &
Founder Insights. The company is present in 18 states, 175+ cities covering 800+
institutes. Company has shown substantial growth in the last two years
and current revenue is sub INR10mn. The average ticket size per student per
year charged to an education institute is INR1000. Company believes that
their tests as one of the best in the industry and that is what sets them apart
from the segment and liked by institutes all over India.
CollegeDoors is a B2B Edtech platform
CollegeDoors is a B2B Edtech platform aimed at enabling various entrance exam coaching
classes and aspirants achieve better results through Analytics and Insights. It is done by
having the aspirant take practice tests just like real exam with most relevant questions and
difficulty of questions spread in a manner that real test practice happens. The company helps
institutes to scale up their coaching classes setup. Company enable the teachers to manage
their entire test process through the company's test platform.
Seen Traction in past 2 years
Company has shown substantial growth in the last two years and current revenue is sub
INR10mn. The average ticket size per student per year charged to an education institute is
INR1000. The company has seen significant growth in customers (institutes) and User (students)
growth in the last two years. The number of customers has grown from 100 to 800 in the last
two years and Users from 15k to 130k in the same time. The same growth in matrices has
been seen in Test per Month and Qs attended per Month. A typical user spends 1-1.5hrs on
the platform attempting test. All these have happened because of increase in online adoption
rate, substantial increase in productivity in sales professionals and improvement in technology
of the company.
About the Industry
Industry is divided into various types of players. (1) The small coaching/individual tutors are
all offline players but for assessment they use online Tests. (2) Local Brands form another type;
these are generally top institutes in their cities. For eg.: Ace IIT & Medical in Mumbai, Bakliwal
in Pune, IIT Asharam in Baroda, Bothra classes in Ahmedabad, IIT Home in Nagpur etc. (3)
Then comes the National brands like Allen, FITJEE, Aakash Institute etc. These are mainly B2C
but also cater to B2B. They are largely Offline but also have online presence but are used
only as lead generators for their offline business. (4) Then there are pure online players like
Unacademy, Vedantu, etc. These are B2C players. (5) Then there are publishers that have
reach and content but lack technological prowess.
The total students in the K12 and Entrance segment is 50lacs. Teachers/group (1-500 students)
Prateek Kumar
+91 22 4031 3440 roughly cater to 75% of the students, that is 38lacs student through 1lac such institutes.
prateek.kumar@antiquelimited.com Coaching classes (500-5000 students) roughly cater to 13% of the students, that is 6lacs
Saurabh Dugar student through 500 such institutes. National Brands (5000+ students) roughly cater to 12%
saurabh.dugar@antiquelimited.com of the students, that is 6lacs student through 15 such institutes.
EduBridge
EduBridge is an integrated workforce development organization started in
2009. EduBridge impacts the entire career development life cycle of
unemployed youth. Company helps the unemployed youth to understand
their strengths, build tomorrow's skills needed by recruiters and secure
employment with them, thereby building sustainable careers for beneficiaries.
Represented by EduBridge has also diversified business model with revenue coming from
Mr. Girish Singhania
Learning Solutions, Career Solutions and Talent Solutions. Currently, major
Founder
focus is on the BFSI and IT sectors due to its demands.
In Upskilling segment - Successfully transitioned to online model in past 2 years
Company's customers are the unemployed people aged 18-28. The company upskills them
as required by corporates and get them employed. The company's target market is recently
graduated, graduated in last 5-years and currently pursuing graduation students, which is a
market comprising of 80mn youth in India. For the first 9 out of 10-years of existence, the
company operated physically in 18 states and 100+ cities. Post Covid, the company has
successfully moved to the online model. Before moving online, the company had 95 centers
training 25,000 students/year. FY22 should be training 40,000 learners, while target for
FY23 is 100,000 learners.
Target strong growth and scale up in operation
The company was growing at 30-40% CAGR in the first 9 years of operations, as per
management. The company has been part of the industry since a long time and understand
its clients very well, this has also enabled them in smooth transition from offline to online. The
company aims to grow 10-15x in the next 4years. Previously capex was required to setup
new centres but now it is required only to increase tech capabilities. Company will only keep
centres where the clients want to and pay for independently. In the future, company will be
omni-channel and target presence in all major cities. The company has not required any
funding as it has been a profitable business in the last few years. The company would
require some funding to increase and scale-up customer acquisition and newer geographies.
But, this will be done in the same segment and the idea is to go deep in the same customer
segment. New products would aid in increasing subscription-based product. The company
may look at other segments at a later point of time.
Revenue Streams and Stakeholders
The company earns from two main streams: 1. Students/Learners: They pay for the course,
certifications and placement fees; 2. Corporates: They pay from CSR budget and also for
recruitment.
n Learners segment has so far grown to ~25% of the business, and the intent is to
reach 50-60%. For learners, courses are usually 3months long (3hrs a day, 6hrs a week).
Fees range is INR25-30k (learners can recoup in 1-2months post-employment). Company
says that out of eligible placement candidates they get placed roughly 90% with salary
in range of INR2.5-4/lacs. Learners require 1. Better tech skills which colleges do not
provide; 2. Skills required by the hiring companies; 3. Part-time jobs and Internships; 4.
Certifications that would help them gain edge over others; 5. Guidance on careers.
Acquisition is done through various databases, employment exchange, smaller training
institutes, local activation through newspaper, influencer. Digital marketing is also being
started. The company has targeted to increase focus on social media, which will be
followed by demos and closure from the team.
n Corporate segment forms 75% of the revenues. There main demand is to have people
that are properly skilled and ready for the corporate jobs. All the curriculum is made in
association with corporates such that it gets the learner job ready. Some are even certified
Prateek Kumar by the corporates.
+91 22 4031 3440 n Trainers are the third pillar to the business. Trainers are handpicked with 5 round
selection process which then go through 2weeks of training. Company has a GuruSchool
Saurabh Dugar program which helps with training of trainers. This could also become a revenue stream
saurabh.dugar@antiquelimited.com in the future.
Klassroom
Klassroom is branded network of coaching classes providing tech-driven
and standardized coaching to its students in hybrid offline/online approach.
Klassroom provides a hydrid offline and online learning model via in class
coaching and via Klassroom Konnect its personalized online learning
Represented by platform. Currently, Klassroom is catering 10,000+ students of VIII to X (State/
Mr. Dhumil Javeri ICSE/CBSE), XI+XII Science + JEE/NEET/CET and XI+XII Commerce + CA- CPT in
Mr. Dhruv Javeri
160 centers across Mumbai and Delhi. Klassroom Edutech was incorporated
Founder
in November 2016; Founders have had long period of experience in
Classroom teaching. Before Klassroom Edutech came into existence, Founders
were running a coaching class in Mumbai. Klassroom with its partner
program onboards on its platform the best and curated institutes in a locality
to offer a choice to students select offline centres available in their locality.
Through its hybrid model, company targets Rurban (Rural+urban) population
making quality coaching accessible to all. They have raised $200,000 as
part of its pre-Series A round led by ah! Ventures, Startup Angels Network,
Growth Sense, and Meteor Ventures
Founders envision Offline to Online Hybrid (O2O) tutoring platform
Founders have vision to build an online marketplace for quality and affordable coaching
education at convenient locations. Klassroom targets largely untapped unorganized sector of
coaching classes by finding and partnering with best coaching classes available in specific
localities, who they call Local stars.
n Under company's structure, company research on several star coaching classes in different
localities. All these coaching classes are graded under various parameters like the team
of teachers, location, years of existence, results, market reputation, infra and management.
n Based on all these parameters, it shortlist the top coaching classes in a particular locality
and bring one or few of them onboard as Klassroom Center under its Flagship Klassroom
program.
n With this association, company extend help to these local star coaching classes to get
discovered on its platform, support them with Klassroom features like online study content,
comprehensive study material, on- demand counselling, teachers' and counselors' training
programs, Klassroom Konnect and increase their potential reach in the locality.
Online Tutoring
Klassroom operates in a B2C online business model, whereby Company provides services of
online live tutoring using a virtual learning environment (whiteboard Audio Video environment)
to students, besides providing online tutoring to students for various competitive exams. K-12
offering is at affordable prices range of INR4500-9000. Hybrid learning package range
from INR20k to INR35k. Company has 10000+ students from 300+ cities across 22+ states,
who have availed the Klassroom live tutoring. Klassroom Konnect provides a 360 degree
platform to run the online academy; customize the learning content that suits the courses and
students.
Offline Model - Urban Markets
Klassroom's hybrid Business Model enables it to give the students option of enrolling at 160+
Prateek Kumar
+91 22 4031 3440 centers present in 2 cities - Mumbai and Delhi. Klassroom offers physical tutoring to its students
prateek.kumar@antiquelimited.com through partner institutes. The Covid-19 pandemic challenged the team to focus and strengthen
Saurabh Dugar the online offering and transform into hybrid tutoring platform. Students enrolling through
saurabh.dugar@antiquelimited.com Klassroom get access to the Klassroom Online platform.
PepperFry
Pepperfry is a Omnichannel masstige segment furniture retailing company.
The company has superior supply chain with 26 fulfillment centres, 1,500+
people working on supply chain with 16,000 pincodes serviced and a fleet
of more than 500 vehicles. With the target of having omnichannel presence,
Pepperfry aspires to have 200+ studios (offline) by Mar-22 and will be done
Represented by as a combination of franchise and company owned model. These have helped
Mr. Ashish Shah / built deep Moat around the company in a very lucrative category. Company
Mr. Ambareesh Murty has very strong unit economics. Looking at IPO in the next 12 months as
Founders company is on path to profitability despite impact of Covid.
Five Pillars of strategy for Pepperfry
n Stands for variety for consumers across India. They work with small and medium
enterprises, most of whom are manufacturers to get the widest variety of assortment. In
doing so, half of the business comes from brands which are owned by Pepperfry called
House Brands.
n Omnichannel presence: Both Offline and Online presence. It is the duty as a brand
to connect in an Omnichannel manner. Pepperfry targets to have 200+ studios by March-
22 which will be done as a combination of franchises and company owned.
n Superior supply chain: Pepperfry has 26 fulfillment centres across the country and
employs 1,500+ people working on supply chain with 16,000 pincodes serviced through
a fleet of more than 500 vehicles. These have helped built a deep Moat around the
company in a very lucrative category.
n Use of technology: Company deploys technology in supply chain and also for
engaging with the customers. Company has invested in tech on front and back end. In
front end, 3D visualization of all products on the platform blurs the line between online
and offline.
n Building a top brand: Pepperfry as a brand is extendable and is leveraged extensively
by the company.
About the market and Pepperfry's share
n Consumers' comfort on online shopping has resulted in reduced unorganized share (90%
to 80%), post COVID. Big shift is seen to online from Carpenter and organized offline retail.
In FY22, share on online was 3%; in FY24, it could reach 8% in home décor segment. Lot of
these change have happened and the segment is already at 7% online penetration.
n Furniture segment can be divided into the three categories, Basic furniture: These
include commoditized furniture, those imported from China and that is sold by all mom
and pop stores. Third, Masstige (Mass Prestige) furniture: Higher priced than basic
furniture with more focus on style of the product. Fourth, Luxury: Premium priced products
that are only sold offline via retail. Basic and Masstige constitute 50:50% of the end
market sales. Diversified Ecommerce players (Horizontal players) have larger presence
in the Basic furniture category, while Vertical focused players like Pepperfry focus on
Masstige category. As per management, Pepperfry commands more than 50% market
share in Masstige category furniture sold online.
n Mattress category: This can be further segregated into categories: Foam, Coir, spring
mattress. Increase in comfort requirements and improvement in lifestyle because of more
stay in Hotels, has resulted into increased demand for Spring mattress. All of this is a
USD30mn market where online is doing really well currently.
Pepperfry edge
n Company has 50% gross margin. Company has market share of ~2%, which will grow to
4-5% in 3-4years.
n For Industry peers, Furniture stores generally are 50k sqft but for Pepperfry store size is
Prateek Kumar ~2k sq ft because of near infinite online catalogues. Retail store job is to show reference
+91 22 4031 3440 of product via catalogues to the customer. Offline presence is to showcase the brand to
prateek.kumar@antiquelimited.com customers.
Saurabh Dugar n Hometown works with Pepperfry for fulfilment services and drive access to consumer.
saurabh.dugar@antiquelimited.com Pepperfry is the front facing brand.
Grab
Grab was cofounded in 2013 by Pratish Sanghvi alongside 2 other
cofounders and provides services ranging from on-demand, reverse
deliveries, first mile, and last mile logistics. Some of its clients in include
Jiomart, Bigbakset, Reliance Trends, KFC, McDonalds, Flipkart and Amazon.
Represented by In 2019, Grab was acquired by Reliance Industries and now Grab is playing
Mr. Pratish Sanghvi a key role in ramping of Jiomart operations in India. Over past years,
Founder
Company has pivoted itself from a B2C company to B2B platform.
Management highlighted that Industry is seeing good positive demand so
far; Independence day event was also very good. Tier 1 & Tier 2 pockets are
opening very well and demand from the upcoming festive season is expected
to be good.
Improvement in Unit Economics for Industry
Technology has been a great deal maker for improving Unit economics for Industry whether
its Ecommerce, Grocery or Foodtech. Concepts like route optimization, Routing - all have
added lot of advantage to last mile optimisaton. For Instance, Myntra's last mile cost has
come down by 25%, when it started dealing with local shops/Kiranas for delivery - since then
the model was replicated by many other players. In past, there were companies, who
specialized in reverse logistic, but now they do both last mile and reverse logistics which help
in unit economics. For Foodtech, delivery costs were unimaginably high few years back, when
volumes weren't there, but Swiggy and Zomato did amazing job with getting increased
density of volumes while Technology has helped as well (with clubbing, route allocation,
estimation certainty) - this has all lowered the overall cost of Delivery in the segment. For
Foodtech players, minimum guarantee has gone off and they have moved completely to
variable models now.
Gig economy jobs
Management indicated that over past few years, 2mn gig economy jobs have mushroomed
to 25mn jobs. Further, if any platform is illtreating a supply side fleet, they have options to
switch jobs as there is a lot of employment available in gig economy now. Many platforms
are focusing on providing engaging and safe atmosphere for delivery boys. Companies also
give benefit to riders to pull out money on weekly benefit from the wallet as and when they
want.
Commissions vary significantly across categories
Price point of delivery can vary significantly like INR10-60 on per order basis. Highest yields
are in the documentation segment followed by medicines and then fashion and apparels,
then comes in ecommerce and then groceries and then food. Pharma is the latest category to
catchup in the delivery segment and has seen good swing in volumes in less amount of time.
Deployment of EV in delivery - may not yield significant gains
Industry is looking at it closely: One from CSR angle and second is the real intent. For real
intent, people are still looking at the correct economic model. Based on current economics
and payment structure it seems cost will not go substantially lower. EV may become interesting
from cost angle. Grab is also working on EV models for adoption.
SuperApps
Prateek Kumar
+91 22 4031 3440
Everybody is trying to do that. Alibaba was looking at Paytm and others to form a Super App
prateek.kumar@antiquelimited.com and do everything the customers want. Same was the case with Flipkart. Everyone wants a
Saurabh Dugar Super App so that non-frequent item can also do well. Super Apps can work in India and
saurabh.dugar@antiquelimited.com there is no reason it won't. What is to be seen is when it will happen and who does it.
Sharechat
ShareChat was launched in 2015, with a motto of finding trending content in
Indian languages with a baked-in viral loop. ShareChat works as content
consumption used case platform - more popular in smaller cities/towns in
India; It works like a repository of content where users view/consume feeds
and can share the content with anyone on whatsapp. The Company relies
Represented by
Mr. Manohar Charan on teams of engineers, data science, design, business & strategy, & content
CFO operations. Company started monetizing business in 2019 via Ads. Company
has 2 apps - ShareChat and Moj - and for both ShareChat & Moj, the content
consumption is driven through an AI-powered content feed. Post the ban of
Tiktok in India, in July 2020, Sharechat launched Mauj in Short video segment.
Management indicated that business has seen a sharp recovery from the
lows of Covid in Mar-20, with Traffic growing 9x and monetization growing
20x over past 12-18 months. ShareChat recently raised USD502mn and
USD145mn in two rounds from a clutch of investors in April-21 and July-21
respectively, valuing the company at USD2.1 and USD2.9bn then. These
funding rounds will help Company accelerate the growth and allow Moj
and ShareChat to continue to develop the improved ecosystem for content
creators and consumers alike.
Three Phases of growth for ShareChat
n ShareChat was founded by three IIT Kanpur alumnis in 2015. The 2015-2018 phase for
the Company was when there was no material competition in the segment. For first three
year of existence, company was growing without any expenditure. In 2018, came TikTok
(Bytedance's), best AI based company in the segment; it later also copied the ShareChat
format for which a legal battle is going on between ShareChat and TikTok.
n In 2019, for the first time, company thought of monetization and Ads was lowest hanging
fruit. Since then, it has been engaging (giving adslots) with Google and many individual
Brands for advertising on ShareChat.
n In July-20, ban of TikTok in India created massive vacuum in Short video segment. Just
then, ShareChat launched a TikTok-like video format app called Moj. Moj's monthly
active subscribers have leapfrogged to ~150mn in a year's time and is the top platform
in this segment now.
Business Highlights
n Revenue run rate for the company fell to INR10mn (monthly) when Covid hit, however,
revenues have now zoomed to annualized USD50mn. Traffic has grown 9x and
monetization has grown 20x over past 12-18 months. As of now, Mauj is not monetizing.
n Sharechat has 85% audience from tier-2/tier3 cities, while Mauj is a more aspirational
platform and tier-1 audience constitute 30% of the overall mix.
n Cost Mix: Servers/R&D costs constitute 40% of the overall costs. User acquisition is the second
largest item at 30-35% of the cost. Incentivization of creators (people who were popular on
TikTok) constitute 10% of the costs. Remaining costs is towards Music licenses etc.
n Commerce is an interesting used case where ShareChat may look to venture in Future.
Company is also looking at option of gifting space during the online video streaming
segment.
Competitive landscape
Prateek Kumar n With a monthly active user base of 150-160mn and 50mn+ strong creator community,
+91 22 4031 3440
Moj in a year has grown into India's number one short-video app.
Saurabh Dugar n Apart from Moj, Indian apps like Chingari, Mitron and Roposo are also available, and
saurabh.dugar@antiquelimited.com they have been present in the short-video space for some time.
Quint Digital Media*

Quint Digital Media was represented by Mr. Raghav Bahl- Founder
Network18/TV18 and Co-Founder Quint, Ritu Kapur- Founder Quint, Piyush
Jain- Business Head Quint and Vivek Agarwal- CFO Quint. It is a digital media
company and offers news through platforms in various categories such as
politics, businesses, opinions, entertainment matters, sports, technology
Represented by
Mr. Piyush Jain aspects, health and fitness, women matters, blogs, hot wires, photos and
Founder videos, and international news. Beyond the daily headlines, Company has
products like My Report, WebQoof, and Special Projects etc. The Company
had acquired digital properties - The Quint, Quint Hindi, Quint Fit on 1st Jul'20;
the acquisition has turned the company's financial performance around by
delivering profit at both operating and net levels. Revenue for 9MFY21 (Jul'20-
Mar21) stood at INR 180mn with operating margin of 15.9%. For FY21,
revenue were at INR 211mn, up 51% YoY.
Digital media industry to grow at 22% CAGR over 2022-23e
n In 2020, digital media accounts for 17% market share in the Media & Entertainment
industry; digital has captured significant market share in a short span of time. It was the
only segment including online gaming which registered growth in 2020. Digital
subscription has grown 49% YoY in 2020.
n For the Industry, advertising and subscription revenue was down 25% and 20%, respectively
in 2020. While for the digital media, advertising revenues was flat and subscription
revenues was up 49% with the pickup in digital content consumption due to lockdown.
Similarly, for online news, unique visitors jump from 394mn to 454mn in 2020.
n Key factors driving the growth in digital are higher penetration of smartphones, cheap
mobile data, increasing average data usage per subscriber and higher data speed.
n Digital media is expected to grow at 22% CAGR over the 2020-23 higher than industry
growth of 17%. It is also expected that the growth in digital would be largely driven by
higher advertising revenue vs subscription revenue.
n Approximately 80% of the news consumed in the country is on social media platforms.
Outlook
n Company on July'20 has acquired three digital platform from Digital News media viz.:
"www.thequint.com", "www.hindi.thequint.com" and "www.fit.thequint.com".
n Each of the digital platforms has its own social media channels on all major platforms
including Facebook, Instagram, YouTube, Twitter, and more.
n Don't see threat from leading Hindi print media as company expects it can produce
much better content at very low cost compared to print media.
n In term of revenue, it is well-diversified with top 8 industries contributing 83% of the total
with Telecommunication & Mobile -21%, Infrastructure - 13%, and Entertainment -11%,
BFSI - 10 to 15% and 10% each from gaming and education segment.
n In terms of the revenue models, Programmatic & Partner revenues share was 25% in the
total pie in FY21.
n All the three platforms i.e. Quint, Hindi Quint and Quint Fit have a distributed viewership
reach and engagement performance across various mediums - own websites, own apps,
Vikas Ahuja and all social media channels such as YouTube, Instagram, Facebook, etc. Quint has
+91 22 4031 3407
~72+mn unique visitors, 425mn+ video views, 188mn+ page views and average time
vikas.ahuja@antiquelimited.com
spent of 2mn.
Ashish Agrawal
+91 22 4031 3420
n For FY22, management expects revenue to grow at 80-100% and EBITDA margin of 30-
ashish.agrawal@antiquelimited.com 35%.
Fleek
Fleek is attempting to simplify the world of subscriptions, by giving users
their control over subscriptions. They have raised ~USD1mn in seed funds,
led by Axilor Ventures, RTP Global and other leading funds. They help manage
subscriptions with just a toggle, track all your subscriptions and recurring
payments in one place, show how much money is spent on each scheduled
Represented by payment and with each separate merchant. Fleek believes that the pandemic
Mr. Aditya Uttaravalli
has resulted in a permanent behavior shift leading to subscription from
Founder
grocery to meats. Company offers a simple Toggle option to switch off a
subscription. Over medium to long term, Company intends to create a
marketplace for applications and monetization to happen from various
means: (1) Merchant Fee via marketplace (~10% for digital brands, ~25%
for D2C brands), (2) Subscription fee for service (~0.5-1% for Rent-pay, maid-
pay, etc.), (3) Checkout fees (one-click payment with ~2.5-3% fees) and Credit
card interchange (0.75-1% per transaction).
Fleek: Track and manage all your subscriptions
The idea came to the founders in Jan-21, they started work on it in Mar-21 and received their
pre-seed funding in May-21 of USD1mn Axilor Ventures, RTP Global and other leading
funds. Vision of the company is to be the subscription management and sharing application.
The company believes everything will be a subscription-based soon, many of the sectors have
already become subscription-based. Even offline services moving online and to subscription.
Fleek wants to make discover, manage and split subscription super easy. The actions possible
are Cancel, Upgrade and Renew along with making splitting bills easy. All this is planned to
be done by a simple toggle. Initially this will be a concierge service till deep tech integration
with all subscription merchants can be done.
Why Fleek may make sense for merchants?
The merchants would like to integrate with Fleek because this would help them understand
the user better (something like Cred). This will help distribute better and understand user
spends better. There is also Zero visibility to these merchants of user churn, and this is where
Fleek comes in where it can help understand it better via its applications. Company intends to
create a marketplace for applications and monetization to happen from various means: (1)
Merchant Fee via marketplace (~10% for digital brands, ~25% for D2C brands), (2)
Subscription fee for service (~0.5-1% for Rent-pay, maid-pay, etc.), (3) Checkout fees (one-
click payment with ~2.5-3% fees) and Credit card interchange (0.75-1% per transaction).
Why Fleek now and Vision ahead?
n There are basically three reason of use case of Fleek right now. Most important of which
is the Consumer angle which shows that that consumer subscription adoption is at an
inflection point. The pandemic has resulted in a permanent behavior shift leading to
subscription from grocery to meats. With media moving away from advertising to
subscriptions, consumers are exposed to a lot more subscriptions. Increasing credit card
penetration & the ubiquity of UPI is making subscriptions available to a lot more users.
n Secondly, from the technological infrastructure point of view, changes in payment
infrastructure makes it easier to program spend controls & P2P payments like putting a
control on spend per month.
n Third angle with User data sharing. User's willing to share financial data with merchants
for more personalized experiences as long as they get better experience and UI/UX.
n The company sees itself broadly working in three areas: Consumer, Merchant and Payments.
On the consumer layer the company see itself working on Subscription Integration;
Marketplace; Visibility, Control & Sharing; Social Discovery (discovering what apps others
Prateek Kumar are using); and very later on Subscription category creation. On the Merchant layer, the
+91 22 4031 3440 company see itself working on Data for personalization; One-click check out; Split payment
from the app. Later on will also work on Multiple sign in with Fleek and Integration with
Saurabh Dugar the Fleek app. The Payments layer will be brought on after a while and Company will
saurabh.dugar@antiquelimited.com work upon Credit card/Wallet transaction fee and Checkout Credit.
HubHopper
HubHopper is a podcast platform consisting of over 300,000+ podcasts,
audiobooks and news for users to listen to. They also have a studio platform
designed to allow creators to create podcasts for free and distribute it to all
the biggest audio platforms in the country including Amazon Music, Hungama
Represented by and Airtel Wynk. It has over 11mn stream listens in a month. The company is
Mr. Gautam Raj Anand into the hosting, creation and distribution. Company also operates in native
Founder languages, and also supply content to other Audio OTT platforms. The
company is looking to host 240,000 podcasts which could result in 300mn
streams per month. The company owns 60% market share of podcast
hosting. The company believes that it will turn profitable by FY23/FY24.
Industry landscape
HubHopper is India's largest Podcast hosting, Creation and distribution Platform. Some of the
other companies in this domain of the Audio landscape are Anchor (Spotify), Libsyn, Audioboom
and Buzzsprout. The other parallel businesses in the Audio landscape are (1) Music Platforms
(like Spotify, Wynk, JioSaavn, Gaana, Hungama, etc.); (2) Long tail Listening Apps (Google
podcasts, Pocket Casts, Castbox, Stitcher, etc.) and (3) Closed Audio Ecosystems (Pocket FM,
KukuFM, Headfone, Storytel, Audible by Amazon, Calm). There are currently 20,000 active
podcasts in India, which is a very small in number. 70% of these are made on either Anchor,
owned by Spotify, or HubHopper.
About HubHopper, Products and Monetization
n Distribution of Podcasts: The company distributes podcasts through a large source
of mediums: OTT platforms, Gaana.com (API integration such that much of the podcast
consumed at Gaana is from HubHopper), Spotify, Wynk, Hungama, Amazon Music,
JioSaavn, OEMs (Samsung, Karbon, Intex, Xiaomi), IoT devices and Applications (PayTm,
PhonePe, OlaPlay). Company has exclusivity from Wynk, Hungama, Amazon Music.
n HubHopper Studio: Due to this distribution capability company has huge data inflow
as these platforms are basically sourcing all podcasts through HubHopper. Using this
data, the company realised that it was the supply side rather than the demand side that
was the issue. Thus, the company reached out to the content creators and that resulted
into creation of HubHopper Studio. HubHopper Studio Editor, only the second audio
creation or manipulation platform in the world, helps in creation of podcasts with all
features possible from the comfort of home.
n HubHopper also enables podcasters in creation of their own micro-site without single line
of code through HubHopper Podsites and also allows advertising on the same.
Company has also launched HubHopper Connect that enables multiple podcasters
stream together with audio being the focus rather than Video.
n Company also has Marketplace for Advertisement via HubHopper Marketplace.
Brands and Agencies can come and see the podcasts available by Category, charge of
it by CPM or can simply go to the podcasts they want to advertise upon and checkout
with HubHopper being the intermediary.
n With Anchor in India only be able to distribute to Spotify, HubHopper is set to own the
larger part of the 400,000 active podcasts India will have in 2years. HubHopper expects
to distribute 60% of these, which will help the company save INR120mn per month of
Prateek Kumar revenue for the OTT/Audio platforms. Revenue on the other hand, can grow to INR 65mn
+91 22 4031 3440 per month with usage of HubHopper products like Studio, Studio editor, Marketplace
prateek.kumar@antiquelimited.com etc. (which they require if they want to make a full stack podcasts or want to earn from
Saurabh Dugar advertisement integration in their podcasts and etc.). Every podcasts have the potential
saurabh.dugar@antiquelimited.com of a mid-roll ad, a pre-roll ad, a host-read ad, etc.
RevOS
RevOS is a smart micro-mobility platform that works with enterprises in the
automotive segment and accelerate their smart vehicle journeys. It aims to
empower all 2 & 3-wheeler vehicles through AI integrated IoT solutions that
will make them smart, safe & connected. They are already powering 1000+
Represented by vehicles in India. The company has two products currently: Bolt Charging
Mr. Jyotiranjan Harichandan Network: network of charging points across multiple cities in India accessible
Founder
via the BOLT App; RevOS Platform: EV Operating stack that can make any EV
smart, safe and connected. The company is present in 60 cities and 5,000
charging points. The company is in talks with a socket manufacturing
company to outsource the manufacturing of the charger and will focus on
earning from licensing fees.
Need for RevOS?
n Majority of the innovation in the two & three wheeler EV space will come from the
developing economy such as India, China, South-east Asia as this is where 2W/3W EVs
will be used the most.
n RevOS' use case: 1. Expected increase in use of EV; 2. Very limited public and private
charging points currently; 3. Customer's higher expectation of smart tech-based products;
and 4. EV's range anxiety
n The Solution: Bolt Charging Network: network of charging points across multiple cities in
India made accessible via the BOLT App; RevOS Platform: EV Operating stack that can
make any EV smart, safe and connected. RevOS integrates into any vehicle into a smart
dashboard of sort;. OS is the centre piece to any EV.
n Company's focus is to make BOLT for EV like what Android is for mobile today. The
solution is to bring the charging to the EV rather than taking the EV to the charging point.
Progress so far on BOLT
The company is present in 60 cities and 5,000 charging points. Company has come up with
a charging point that is as cheap as a mobile charger, easy to install (30mins), with no Wi-
Fi required, can charge any 2W/3W vehicle and even four wheelers like MG, Nexon, Tigor,
etc. The charger will solve three problems: Energy, payments and will decentralize the charging
platform. These chargers can be used by various people: EV owners, EV Manufacturers,
Fleet owners, businesses at their offices or tech parks; can also be installed in various places:
Malls, parking spaces, Kirana stores, housing complex, independent houses. Standards for
two & three wheelers is still not developed. Most of the standards are for four wheelers and
that to developed markets. This is because four wheelers firstly use high power lines unlike
two wheelers that require a normal household power line. And, also because developed
economies have more use case for four wheeler EVs than two wheelers.
Road ahead and monetization
Monetization models are still being explored. (1) For BOLT, ways to do are via transaction
route: say charge a commission on usage of these chargers; (2) For RevOS, SaaS revenue
could be per user from OEMs via licensing fees route. While, the company has made no
marketing spends so far and growing only organically, but it will start soon after round of
Prateek Kumar
+91 22 4031 3440 funding. Partnership with OEMs should help via bundling as they sell in large quantities. This
prateek.kumar@antiquelimited.com bundling could be for the OS or for the smart charger or both. The company is already in
Saurabh Dugar talks with a socket manufacturing company to outsource the manufacturing process of the
saurabh.dugar@antiquelimited.com charger (someone like an Anchor). This will also help push the technology to the mass market.
Redwing Labs
Redwing is building India's fastest delivery network by using on-demand
drone logistics. Their mission is to democratize on-demand delivery for
healthcare & commerce across geographies. The company has worked with
organizations such as The Centers for Disease Control & Prevention (CDC),
Gates Foundation in Papua New Guinea for demonstration of polio vaccines
Represented by
Mr. Anshul Sharma delivery by drones. Redwing's mission is to ensure that everyone can access
Founder lifesaving medical supplies quickly and affordably. The problem the company
is trying to solve is the wastage issue with the cold chain products. Also, it is
expensive to maintain temperature during transportation. The company
currently has on demand delivery of 120+ products and is currently mainly
catering to vaccine delivery. The company has partnership with NASA, Boeing,
Lockhead Martin, Airbus, etc.
Redwing Labs: Focus on healthcare drone logistics
Company aspires to change the mid mile delivery forever through its Drone-tech. Redwing is
on a mission to ensure that everyone can access lifesaving medical supplies quickly and
affordably - whether in a dense urban city or a distant rural area. The company currently has
on demand delivery if 120+ products and is currently mainly catering to vaccine delivery. For
the current costs per aircraft, break-even would reach if the company does 3 flights per day
per aircraft.
The problem
Via drone delivery, Company is targeting to solve the problem of cold chain in supply chains.
There is a 30% wastage of cold chain products in the entire process. Moving in bulk from one
warehouse to another results in wastage because of breakage of inefficient cold chain,
spillage of cold chain, leaking of cold chain products. This is a problem that affects all three
stakeholders: Drug Manufactures, Supply chain companies and Hospital chains. The products
also have unique characteristics: They have limited shelf life, are very expensive to maintain
temperature during transportation and challenging geography leading to difficult delivery
and time sensitivity. This a global problem and not only India specific. The healthcare logistics
market is a USD70bn and yet it only serves 1billion people.
The solution
n The solution is creating a virtual cold chain: an autonomous aerial logistics network for
last mile delivery. It has scalability, speed and autonomy. The drone is basically a Hybrid
Vertical Take Off and landing (VTOLs) vehicle which is the latest development in drone
technology. With every flight, the aircraft gets data on external environment. To get
repeatable and consistent flights like airlines, this process of training data is the only way
for safe integration into the sky. The device takes off like a helicopter and moves like a
plane so that it has better landing and take-off because of the landscape scenario in
India.
n These are autonomous drones that can cover an aerial distance of 50km which is
equivalent to 80km by road and which can cruise to speeds as high as 90km/hr. This
will take ~25-45mins. System can use Hub & spoke led layout with a 50 km service
radius; this will help centralize the inventory in the middle and then deliver to hospitals in
spokes.
n All this makes sense as the cost structure of a typical supply chain has a lower transportation
cost but a higher expiry, capital and storage. In the drone delivery the transportation cost
Prateek Kumar is more because of the R&D cost of the drones but expiry, capital and storage costs are
+91 22 4031 3440 limited. This also leads to higher savings roughly ~20% along with higher speed and
prateek.kumar@antiquelimited.com autonomy. With autonomous drones' scalability is not linear, as these do not require the
Saurabh Dugar same no. of operators as to the no. of aircrafts. This will lead to better bottom-line flow
saurabh.dugar@antiquelimited.com once the company is scaled.
Vicara
Vicara is a Sensor Intelligence company pioneering in motion recognition,
tracking and analysis for Automotive, Consumer Electronics & Industrial IOT
companies. Enabling movement tracking, productivity analysis, intuitive
control and awareness in robots, hand-held devices, interactive displays
Represented by and wearables. Founded in 2017, Vicara has grown to become a leader in
Mr. Adarsh Warrier Motion Intelligence. The company's technological solutions run on its
Founder proprietary technology stack known as VME - The Vicara Motion Engine.
Company currently has a small team size of 20. Vicara has managed to
garner revenue of USD500,000 and is looking to reach USD3-4Mn.
About Vicara
n Vicara is a result of work on Compact Motion Algorithms as a final year graduation thesis
at VIT Institute. Vicara's technological solutions run on its proprietary technology stack
known as VME - The Vicara Motion Engine.
n The segments the company products can cater to are Healthcare: fall detection, sleep
monitoring, gait analysis; Engineering: Machine Vibration, Speed measurement; Extended
Reality: Environment Interaction, Head Tracking; Manufacturing Industries: Predictive
maintenance, Structural monitoring; Consumer Electronics: Device Orientation, Gesture
input, Step tracking; Transport: Navigation system, Stability control, Driver Assistance.
n Company could help companies that have motion sensors in their product line, help them
get live with products from scratch or substantially accelerate it by ~10x.
Some products by Vicara
n Swiggy: A Rider Safety System which detects rash driving, minor or major accidents for
their riders ensuring safety;
n Vega: On their smart helmets for fall detection using motion sensors
n IPL: Working with Star Sports and IPL to enable visual interaction using gestures recognition
n Company is working with General Insurance companies for Vehicle Insurance, which
would make your car premium dependent on how you drive such that good drivers get
better premiums than the bad once using motion intelligence.
Client connect and Monetisation
Prateek Kumar Company connects with companies via mutual connections. Company also uses hyper targeting
+91 22 4031 3440 where Vicara targets one company and create an ad in schematics of that company. For
prateek.kumar@antiquelimited.com example: The company targeted Swiggy and this made the company reach out to Vicara for
Saurabh Dugar their Rider Safety feature. Vicara's monetization can be done in two ways: For the API bit will
saurabh.dugar@antiquelimited.com be per user per month basis and second bit would be licensing fees.
Sonata Software*
Sonata Software was represented by Mr. Jagannathan Chakravarthi - Chief
Financial Officer and Mr. Niranjan Koppal - Finance Manager handling M&A
and Investor relations. Sonata Software is a global IT services and technology
Solutions Company specialized in platform-based digital transformation,
Represented by supporting businesses to become connected, open, intelligent and scalable.
Mr. Jagannathan The company delivers innovative solutions for Travel; Retail & Distribution
Chakravarthi and Software Product companies through IP based Platforms, Products and
CFO Services. It bring together new digital technologies such as Omni channel
commerce, mobility, analytics, cloud and ERP. Company has strong
partnership with Microsoft, SAP, IBM, Oracle and HP and has recently
acquired Encore IT, a global IT service provider enabling digital transformation
with experience in cloud. The company reported revenue of USD550mn in
FY21; 14% CAGR for last 3 years.
Focused on Digital offerings
n On cloud computing, company do all segment of cloud computing ranging from migration
to cloud, transformation of existing application on cloud, developing new application for
cloud, mobility, cloud structuring including maintenance and data analytics.
n Contract value for the company varies from USD 1mn to USD5mn as company focus
area is digital services within the mid segment and premium mid segment enterprises.
Success rate for company is higher than industry.
n In digital area, focus area is cloud, data analytics and ERP. Expect margins in cloud
segment to remain at the current level.
Strategic partnership with Microsoft
n Sonata Software has been engaging with Microsoft for last 3 decades and is now the
largest partner for Microsoft in India. In Microsoft implementation space, company hardly
have any competition from other Indian players specifically in area of business application
segment in vertical like CPG, retail, manufacturing and utility services.
n In the domestic business the company generates major part of revenues from Microsoft
Azure in cloud followed by AWS and Google. The majority of revenues in cloud is cloud
hosting.
n Microsoft Dynamics modernization program is a multi-year opportunity and Sonata is
constantly investing in this segment.
n In IMS, cloud portion is aiding to the revenue. Company is looking to invest more on the
cloud portion of IMS and expect good traction in IMS in next 1-2 quarters.
n Last quarter was impacted by supply side challenges due to Pandemic and margins
were also impacted by expenses on account of COVID and capacity expansion.
Vikas Ahuja n India business is doing very well and growth has picked during pandemic period.
+91 22 4031 3407
vikas.ahuja@antiquelimited.com n Company is confident of performing well in the current year on account of healthy demand
and good traction and expect this to continue for next 2-3 years. On profitability, it will be
Ashish Agrawal
+91 22 4031 3420 industry leading and expect to maintain EBITDA margin in the range of 23-25% in medium
ashish.agrawal@antiquelimited.com term.
MobiTrail
Mobitrail is a leading developer and distributor of Applications that work
towards expanding the reach of their clients for mobile products or services
through a multi-channel distribution network and innovative marketing
programs and also create and localize cutting-edge content for mobile and
internet delivery. In past, they used to develop mobile as well as web-based
Represented by
Mr. Mr Vikas Kedia games. Company moved from the casual mobile gaming as it was changing
Founder too much and company saw better value in enterprise segment. Companies
core revenue comes from Banking and NBFC companies (70% of revenue).
Company's Board Meeting manager software is their top selling product.
Usually leases with clients are long term (some clients are using the product
since last 7-8years). Company also has a product for digital lending with
complete life-cycle of the product. Average license revenue is INR3-3.5mn
and profitability of the products ranges from 25-30%. Revenue for CY20
was ~INR100mn but for CY21 so far the company has already touched
INR100mn.
Mobitrail: Enterprise Solutions segment
Company moved from the casual mobile gaming segment few years back to enterprise
solution segment. The company has a developed satisfied customer base in the BFSI sector by
giving the best through their competence, experience, high quality standards and best
methodology and processes. The company caters four strong products, vis-a-vis, (1) Mobility
& Digitization: Transforming physical processes into digital and mobile driven solutions; (2)
Technology Adoption: Working with latest and evolving technologies such as Android, iOS,
Cloud Computing, etc.; (3) UI-UX: In-house design and UX team to deliver intuitive and
refined application experience; (4) IT Security: The company is CERT-in empanelled Security
Audit Company and they perform comprehensive Security Audits for various IT Systems.
Customer Mix and products
n Companies core revenue come from Banking and NBFC companies (70% of revenue).
n Company's Board Meeting manager software is their top selling product; usually leases
are long term (some using since last 7-8years).
n Company also has a product for digital lending with complete life-cycle of the product.
n Average license revenue is INR3-3.5mn and profitability of the products ranges from 25-
30%.
Landmark Products
n Board Meeting Solution: It is the most successful product of the company. The Board
Meeting Manager software is a digital meeting software. It is easy to use and offers
enormous benefits to all parties involved in originating and attending meetings, from
Board members to the administrators. It can be accessed at any time with login ID and
password and has a simple UI, navigation. It can set meetings, has calendar integration,
set agenda, take notes. Has wide variety of features like Creating committees, meetings,
agenda creation, Bulk/Quick upload.
n Distributor Portal for Mutual Funds: The company launched a hybrid application
for Mutual Fund Distributors that works across Web, mobile web, iOS and Android
apps. Transactions for MF like Lumpsum Purchase, SIP Purchase, Switch, Redeem, STP,
SWP are run on the portal.
n IIFL Gold Loan: It is used for tablet application developed to remove desktops from
Prateek Kumar
Gold Loan branches; hence saving space and cost of peripherals & software licenses.
+91 22 4031 3440 The process designed eliminated the use of paper-based documentation by use of the
prateek.kumar@antiquelimited.com tablet camera for scanning and pictures where required. eKYC and eSign were also
Saurabh Dugar some permitted digital integrations in the app. It is used by 1700+ branches currently
saurabh.dugar@antiquelimited.com with average 25000 transactions per month.
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ANTIQUE STOCK BROKING LIMITED FROM THE RESEARCH DESK 15 September 2021 | 1

Antique Internet Post Conference Note

Prateek Kumar SECTOR REPORT

India: The Internet frontier of the World

India Consumer Internet Market (USD Bn)

Source: Redseer, Industry, Antique

Source: Redseer, CarTrade RHP

Source: Industry, Antique

Online players gaining market share

Traditional Economy/business Digital Economy

Covid-19 accelerated the growth momentum for most online businesses

E-commerce business tractions have increased exponentially as people are preferring to

Sectoral Impact due to Covid in the short run

Ericsson: Mobility Report for June-2021 (Comments on India)

Data traffic per smartphone

New Internet based business Models at fore

Key revenue model for internet companies

Subscriptions / Membership Fees

Subscription packages of Indiamart Subscription packages on BharatMatrimony

Source: Indiamart Source: BharatMatrimony

Samsung ad displayed while accessing ET Ad on Facebook Page

Source: Industry, Antique Source: Industry, Antique

Source: Mini Miltia Source: WCC

Feature Listing Fees

JustDial Indiamart Myntra CarWale

Source: Industry, Antique

Commission/Service Charge Model

Source: Industry Source: Industry

Transaction fee model

Source: Industry Source: Industry

On demand Delivery Model

Taxes & charges

Distance Fee INR 25

Surge Fee INR 25

All of the above charges go towards paying your delivery Walet

Restaurant Packaging Charges INR 15

Total INR 108

Source: Industry Source: Industry

Key segments for Internet companies

Players in the hood

Indian landscape is financially under-penetrated measured across various lines

Phenomenal rise in digital payments to give strong insights

Consumer and merchant base of payments companies

Source: REDSEER, Antique Source: Antique

Fintech landscape features prominent players eyeing disruption

Online Classifieds in India

Classification of the online classifies industry in India

Source: Infoedge QIP Document, Crisil

Online recruitment classifieds

Company Operating segments

Online Real Estate Classifieds

Company Operating segments

Online Matrimony Classifieds

Online Auto Classifieds

Source: Industry, Antique Source: EY

Emerging trends in the B2C E-commerce sector

India Retail Market Growth Story (USDbn) Evolution of Retail space

digitization, supply chain

Source: Technopak Analysis, NASSCOM Research