India Online
BUSINESS PLAN
TRANSACTION SNAPSHOT
India Online is a market place (tab application) for students, focused on aggregating educational content & mock tests for national & other state exams.
Business Model
Students
Students can log-in and buy specific test packages relevant to their
exam. The application also features national level benchmarking,
detailed post test analysis and custom test creation for practicing
specific sections of an exam
India Online
CAT
IIT-JEE
CPMT
IAS
AIEEE
BANK PO
RAILWAYS
NDA
Coaching Institutions or Business Associates (BA)will upload questions
pertaining to different exams. With their customized BA dashboard they
can create, manage and price test packages for students.
India Online will offer this application free to students and will earn a 2030% margin on each transaction
Coaching Institutions
Student Acquisition and Projected Revenues
2014
CONFIDENTIAL & CLASSIFIED
Funding Requirement
The company plans to raise $ 500 k over FY 2014 and FY 2015. The funds
will be utilized towards
•
Investment in IT Infrastructure
•
Funding initial business operations
•
National brand building
.13mn
120
Lac
2015
1.4mn
1200
Lacs
2017
3.7mn
6.4mn
3000
Lacs
Students Transacting on the Platform
www.goodly.co.in
2016
5500
Lacs
Approx Revenues in Lacs
2
COMPANY OVERVIEW
India Online is a project launched by Info Solutions Pvt Ltd, an IT Company based out in Main City, started in year 2006
Company Snapshot
Started Delivering IT
Solutions
Won mobile
application project for
Procter & Gambler
Offshore delivery center in
Hyderabad & Main City
Developed &
Patented applications
for diabetic care
Graph not accurately scaled to time
2007-09
2010
2011
2012
2013
2014
Financial Years
Started a business
office Houston &
Seattle
Started developing
mobile apps &
games
Ventured into
animation domain
CONFIDENTIAL & CLASSIFIED
Share-Holding Pattern (India Online)
80%
Directors
India Online
Concept Initiated.
Launching Early
Dec 2013
20%
Parent Company
Mr A
Relatives
Mr B
5%
5%
5%
5%
“Post fund infusion ‘Advisory Investment Bank’ will hold 20 % of the total paid up capital in
this project.”
www.goodly.co.in
3
MARKET OVERVIEW
Exam Applicants - Currently Addressed Market
CAT - The number of applicants for CAT in 2013 dipped
to a five-year low
1.96 Lac
JEE - Registered highest ever registrations for the JEE2013 exams
14 Lacs
AIEEE - The number of applicants in AIEEE-2012 were
1.3 million, in 2011- 1.1 million
CONFIDENTIAL & CLASSIFIED
Tablet Market In India
13 Lacs
GATE - A total of 12,00,728 candidates registered for
GATE 2013 and 9,84,855 candidates appeared for the
exam
~12 Lacs
BANK PO - 7,51,032 candidates appeared for bank PO
exam on June 17, 2012
~7.5 Lacs
Other State Exams – The targets to cater another 5 lac
candidates for miscellaneous state exams
Tab Sales (Lacs)
3.6
19
2011
2013
The Indian
tablet market size
33% CAGR
7.3 Mn
Units
Expected to be
sold by 2016
forecasted growth
rate for TAB sales till
2018
Market Share (2012)
56.5%
22.5%
~5 Lacs
12.8%
Total Target Students
$2 bn
~52 Lacs
www.goodly.co.in
6.2%
1.9%
The Indian Tablet market
is buoyed by growing
preference for tablets in
education and enterprise
sectors, according to a
global research firm
TechSci Research
It is also expected that
most sales will come
from Tier 1 cities,
although the Tier 2 cities
are also in the race for
tablets
Samsung
Apple
RIM
HCL
Others
4
REVENUE
Revenue Snapshot (in lacs)
Revenue Channels
Total
116
51
15
2014
•
One time registrations from coaching institutes- Institutions from top 20 cities can
manage and price their content inventory from their customized dashboard. The
company is aggressively offering the platform free to the institutes pre-launch. Post
launch it will bag an average one time revenue of INR 250k from each institute
•
Dedicated student transactions from coaching institutes- Since the coaching
institutes will be managing all their inventory via a unified platform, we are
expecting nearly 40% of the student force will make online transactions for content
buying. The average annual cart size for Tier 1 and Tier 2 cities students is estimated
at INR 1500 and INR 1000
•
Open Platform Transactions – This application is freely available students PAN India.
Students can transact and download content from any coaching institute for any
national or state level exams.
50
2015
1218
325 527
367
2016
1192
3073
1441
440
2017
2027
5518
3388
103
One Time Registrations
Student from Institutes
Students PAN India
Revenue Model
Coaching Institutions
Students Acquired FY 2014
Students Transacting on India Online
Student base of ~55
lacs. Weighted Average
acquisition 1.35%
75 k
`
CONFIDENTIAL & CLASSIFIED
India Online
30%
Revenue
` Split
70%
Students Acquired FY 2017
Student base of ~73
lacs. Weighted Average
acquisition ~15 %
www.goodly.co.in
1 mn +
5
CUSTOMER ACQUISITION & TRACTION
Top 20 Cities for Launch
Chennai
Chandigarh Allahabad
Nagpur
Pune
NCR
Aligarh
Banaras
Raipur
Hyderabad
Gaziabad
Lucknow
Jhansi
Kolkata
Cochin
Agra
Kanpur
Main City
Mumbai
Bangalore
CONFIDENTIAL & CLASSIFIED
Coaching Institutions
Currently tied up with 20
Institutes
With a student base of 60k
Open Market
Plans to reach 1.1
mn
active customers by 2017
•
The launch of the application (& institute tie ups) will be in top 20
education hubs of India.
•
The company is planning to reach to a total of ~90 institutes in the
test prep segment for 7 major national and state level exams
•
The company has already tied up with 20 institutes in Main City
(majority), Chandigarh and Bangalore. Some of the key clients with
a student base of ~20k include
o The Academy – Mumbai
o Coaching Classes – Main City
•
The company will go for a PAN India aggressive marketing plan to
increase the student traction for its application
www.goodly.co.in
6
BUSINESS OPERATIONS
Sales & IT team
•
As a % of Revenue
2014
2017
183%
12%
IT team would comprise of development, testing and support
professionals and will be optimized to 17 professionals by 2017 from a
team size of 23 professionals in year 2014.
Marketing efforts
The company will also deploy nearly 5-8 professional for HR and support
functions
INR 80 mn
cost capitalized over 3 Yrs
•
Marketing is one of the key initiatives for customer acquisition. iCompete
plans to engage professional Media & PR company for round the year
marketing efforts via a range of media vehicles. The estimated costs split
of the period of next 3 years is ~INR 80 – 100 Mn
Shopping allowances
9%
5%
•
Shopping Allowances- for boosting the buying traction on the platform,
India Online plans to launch free credit points to entice users to make
purchases. These cost of these credits will range between 15% reducing
down to 5% of revenue by FY 2017
16%
1%
•
Servers and IT Infrastructure – Being a technology driven company, the
company would also need to invest in setting up relevant IT
infrastructure for the team. Initially the cost of such infrastructure will be
~15% dropping down to ~6%
•
Rent and Admin – With a plan of 2 offices being set up in Mumbai and
Main City. The IT and back end will be managed from Main City and
Mumbai offices will be a national frontend workplace for the sales team
Servers & IT infrastructure
CONFIDENTIAL & CLASSIFIED
Team (Sales) The company plans to hire senior and middle level sales
professionals for reaching out to Institutions for tie ups. The pilot team of
~20 sales professional will reach ~30 professionals by year 2017.
Rent & admin
48%
2%
www.goodly.co.in
7
KEY FEATURES & USPs
For Business Associates
•
Ready Platform to manage their IT setup – In the 1st phase, the company is reaching out to all Tier 2 institutions with a major benefit of
centralizing their content inventory in a centralized, IT oriented market place (i.e. India Online application). In the 2nd phase the company will
reach out to Tier 1 institutions will the benefit of reaching out to a larger customer base gathered on the platform from Tier 2 institutions
•
Automated dashboards for managing their inventory – The Business Associates can self manage their content inventory via an automated
dashboard. The dashboards allow them to
o Upload the Content
o Create, Manage & Price the Products
o Track Sales of Products
•
Enhanced market reach for the business associates – The business associates (in a brick and mortar format) have a major benefit of reaching out
to mass audience in a market place (India Online application) for education industry
CONFIDENTIAL & CLASSIFIED
For Students
•
National Level Benchmarking – Students can purchase and download the mock tests and can compete against millions of students on the
platform. This enables them to benchmark their performance on a national level
•
Offline mode to practice papers – The purchases are stored in the application and can be access at any time, even under unavailability of internet.
•
A one stop shop for students for purchasing educational content - This application is positioned as a unified online market for educational content
for students. Over a short period of time the company plans to add range of educational products across the value chain catering to all customer
groups
www.goodly.co.in
8
COMPETITIVE LANDSCAPE
Udemy
Concept: Udemy is a website that enables anyone to teach and learn online. Udemy is an open platform, so anyone can build an
online course by posting videos, presentations, writing blog posts, or hosting live virtual classroom sessions.
Business Model: Udemy makes money when instructors make money. It does a 20% revenue share with the instructors
Edufire
Concept: EduFire is an online platform that connects teachers and students from all around the world. With eduFire, students
have the ability to interact online with teachers and other students in a “live” learning environment. Classes are available in many
subjects, ranging from language learning to test preparation to marketing.
Supercool School
CONFIDENTIAL & CLASSIFIED
Concept: Supercool School allows individuals and organizations to build their next generation online school. The aim is to do for
education what blogging has done for publishing - democratize and decentralize it! The backend allows users to create, customize
and administer their school and the front end lets users create profiles, browse through classes, create class requests and
participate in live online classrooms
MentorMob
Concept: A free online learning platform that lets anyone create or take a course on any topic, from academic subjects to how-to
guides. The courses are organized as “Learning Playlists” that include titles like “Obedience Training a Dog,” “Mental Golf Game
Tips,” “How to Scrapbook: Supplies and Ideas,” and “How to Home Brew Beer,” among others. The site currently features some
300 Learning Playlists and the aggregated content is a mix of videos and text
www.goodly.co.in
9
COMPETITIVE LANDSCAPE
Knewton
Concept: Knewton bills itself as an “adaptive learning platform” that aims to customize learning to the individual needs of each
student. The platform uses algorithms to continually assess a student and determine his or her comprehension of a concept,
progress, and vulnerabilities. When a student logs in, he can find his homework and review concepts taught in class that day, play
educational games, and chat with classmates who are also logged in.
Grockit
Concept: Social network launched in 2007 for education and test preparation, announced Wednesday the launch of Grockit TV, a
service that will produce a series of videos on test-prep and educational courses for live streaming or download. The live course
set-up is fairly simple and easy for users to engage. Students log in to chat rooms while the instructor teaches the material, and
moderators are available to answer any questions that students may have
CONFIDENTIAL & CLASSIFIED
MBS Direct
It is one of the largest academic content aggregators in the world. They are the virtual bookstore for thousands of universities
serving millions of students. In 2009 they purchased Xplana, a rich "personal learning space" platform. Now facutly can procure
any of MBS Direct's content directly from within the Xplana environment, and student notes and tags are 'liquid' between online,
offline, and tablet/phone app channels.
www.goodly.co.in
10
FINANCIAL SNAPSHOT
Revenue v/s EDITDA (Lacs)
Income Statement (Lacs)
5518.2
4244…
3072.9
2014
2015
2016
2017
- One time Institute Registrations
50.0
367.0
440.0
103.0
- Student Transactions
14.8
324.9
1192.0
2027.2
- Open Market Transactions
50.7
526.6
1440.9
3388.0
115.5
1218.5
3072.9
5518.2
0%
955%
152%
80%
(180.4)
372.0
1946.0
4244.7
-156%
31%
63%
77%
(221.6)
218.8
1747.6
4028.3
-192%
18%
57%
73%
(221.6)
218.8
1747.6
4028.3
-192%
18%
57%
73%
(221.6)
218.8
1208.5
2783.6
-192%
18%
39%
50%
Total Revenue for India Online
1218.5
115.5
Growth in Revenue
1946.0
EBITDA Margin
372.0
Margin
(180.4)
CONFIDENTIAL & CLASSIFIED
Comments
EBIT
•
The company will be profitable in year 2015
•
The revenues are expected to exceed INR 50 Crs by the 3rd year of
operations
•
Margin
Economies of scale will effect the EBITDA Margin, soaring to ~75 %
with PAT touching nearly 50% within 3 years of operations
EBT
Margin
PAT
Margin
www.goodly.co.in
11
287.9
287.9
1
FUNDING INFUSION AND APPLICATION
2 0 14
2 0 15
2 0 14
2 0 16
Funding Requirement (Lacs)
431.1697 287.95
-56.4
-133.948
-54
2
2 0 172 0 15
Total2 0 16
2 0 17
Application of Funds (Lacs)
0.0Application
0.0
of Funds
Application of Funds
313.18
(56.4)
Investment in Marketing
Cash from Operations
Investment in IT Infra
(100.0)
Investment in Marketing
Cash from Operations
Investment
(133.9) in IT Infra
0.00
313.18
2016
0
313
2
-100
-133.95
-54
-400
431.17
-56.4
-200
1,427.90
-12
3,007
Total
287.9
(54.0)
25.2
2014
25.23
287.95
2015
2 0(400.0)
14
2
2 0 15
2 0 16
431.2
Application of Funds
2014
20
(5
2015
Investment in Marketing
Cash from Operations
Investment in IT Infra
287.9
CONFIDENTIAL & CLASSIFIED
2014
2015
2016
2017
Total
Comments
•
•
•
The company needs funds of INR 3 Crs to support the first 2 years of operations.
In the 1st year the funds will be utilized towards- Funding cash loss from operations, Investment in PAN India marketing activities, Investment in IT
Infrastructure
In the 2nd year the funds will be utilized towards Investment in IT Infra. Since the company will be cash positive by the 2nd year, investment in
marketing will be taken care by internal accruals
www.goodly.co.in
12
MANAGEMENT TEAM
Mr Robin Troop (Director)
CONFIDENTIAL & CLASSIFIED
Mr Peter Andre (Director) -
www.goodly.co.in
13
PAST TRANSACTIONS
Company
Investor
Funding
Knewton
Founders Fund & Pearson, along with existing
investors Accel Partners, Bessemer Venture
Partners & FirstMark Capital
Udemy
Lightbank
$ 1.0 mn
SuperCool School Angel Funding
CONFIDENTIAL & CLASSIFIED
Edufire
$ 33.0
mn
Battery Ventures along with Google AdSense
godfather Gokul Rajaram and Western
Technology Investment participating
www.goodly.co.in
Details
N/A
Have raised a total of $16 mn
$ 100 k
N/A
$ 1.3 mn
N/A
14
POINT OF CONTACT
Please feel free to write to us/ call us
CONFIDENTIAL & CLASSIFIED
Share your contact details here
www.goodly.co.in
15
Thank you