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Unilink：India Venture Blue Ocean Market, First Roadshow in China with Fosun RZ
Release Time: 2019-02-21
January 16th,2019
Fosun Group in Shanghai
The Fifth Unilink College
Big Name
Tej Kapoor, Co-CEO of Fosun Group
Deng Zhaojun, Strategic Investment Director of Alibaba Mobile Group
Founding Team of 7 Indian Invested Enterprises
Aloke-CEO of Ixigo
Pushkar-CEO of Let's Transport
Krishnan-CEO of Kissht
Vikas-CEO of Perk Finance
Devendra-CEO of Kredily
Vinit-CEO of Mylo
Amit-CFO of Delhivery
The above heavy guests were present at the "2019 Fosun RZ · India Venture Capital Market Sharing Session" hosted by Fosun RZ Capital, and had in-depth discussions with more than 100 investors who were concerned about the Indian venture capital market to explore India's Internet entrepreneurial opportunities.
At present, India ranks third in the global start-up ecosystem and Indian economy poised to become third largest by 2025. In recent years, with the rapid influx of hot money into the Indian venture capital industry, the increasing amount of funds show the confidence of investors from all countries in India's start-up ecosystem. In addition, India has skipped the era of PC and directly entered the era of mobile Internet. With various favorable policies of the government, the future is full of strong explosive power.
Fosun RZ Capital has established an Indian localization investment team since 2017, focusing on entrepreneurial opportunities in Indian Internet industry. By the end of 2018, Fosun RZ Capital has invested in seven companies in India, covering logistics, transportation, finance and payment, education and other markets.
The followings are highlights of this session and introduction about 7 outstanding Indian start-up companies.
Catalogue
1. Introduction of India's Macroeconomic and Industrial Base
2. Entrepreneurial Opportunities in India Internet Industry
3. Funding Strategy of Forsun RZ Capital in India
4. Introduction of 7 Indian start-up companies
01 Introduction of India's Macroeconomic and Industrial Base
Nowadays, India’s GDP roughly equals to China’s in 2005. The recent growth of India resembles China in 1990s and its per capita GDP is rich in the south and north, power in northern midland. Moreover, most of the tier-1 cities use English, but Indian native language is more popular with the Internet users, accounting for about 60% of the total, and the localization trend is significant.
Because of the huge demographic dividend, it is suitable for the development of Internet industry (63% of people under 35 is among the world biggest). In these circumstances, the penetration of E-tail users now is only accounted for 7%. In 2028，heavy online shoppers are expected to reach 100 million. Besides, E-Finance industry has developed rapidly under the catalysis of the banknote demonetization. Digital mobile advertising leads the overall advertising media industry in India and O2O’s revenue share in the Internet Industry can increase to about one-third in 10 years.
02 Entrepreneurial Opportunities in Internet Industry
Investing in India is not simply Time Machine Theory. Although its market is similar to China, its characteristics are also quite distinct. India is currently known for its pharmaceuticals (generic drug) and IT service industry, but there are still large gaps in transportation(rickshaws/Tuk-tuks) and cross-border E-tail industry. Its own characteristics are significant. The corresponding category is insufficient, and online penetration is low. Both need new companies to open up and fill the gaps in the market. Due to insufficient supply of corresponding categories and low online penetration rate, new enterprises are urgently needed to explore the Indian market and fill gaps.
Due to the current lower valuations and greater potential of Indian Internet companies, it is an excellent opportunity to enter the market right now. Since the traffic monetization does not work in Indian Internet industry, monetization of products that prioritizes scalization are difficult. Therefore, we recommend to mainly choose income-based products. The selection of segment tends to be in both the content and E-tail directions. The search and social fields need to be carefully considered.
03 Funding Strategy of Forsun RZ Capital in India
19 Indian Unicorns combined valuation of $71 billion in last year, compared to 10 unicorns with valuation of $39 billion in 2017 which meant the growth rate has nearly doubled. Meanwhile, time taken to reach unicorn status is reducing that shortened from an average of 8.6 years to an average of 3.4 years. Another notable feature is that Chinese capital is becoming more active in Indian market.
In 2017, Fosun RZ Capital established an Indian localization investment team to develop differentiation strategies based on industry research and trends judgement, focusing on the advancement and feasibility of its business model in Indian market, and whether the start-up enterprise founders have the entrepreneurial spirit of industry leaders and the possibility of combining with Fosun Group's various industry segments. Forsun RZ Capital will help venture companies rapidly expand their business scale and increase their industry influence.
(Entrepreneurs communicate with investors after the road show)
(Entrepreneurs communicate with investors after the road show)
This session showed that in addition to the enthusiasm of many US dollar funds for Indian market, many strategic investors and business partners are also very interested in Indian market. After the roadshow, they conducted in-depth discussions with the 7 Indian start-up companies’ founders in capital, industry, business cooperation and other aspects.
As part of the post-investment service, Fosun RZ capital will continue to provide Chinese capital market’s opportunities in financing and business cooperation for overseas invested companies and be partners in their entrepreneurial road.
The following is the introduction of 7 companies invested by Fosun RZ Capital in India covering logistics, transportation, finance and payment, education and other industries.
Company Name: ixigo
Company Introduction:
Indian "Qunar.com" - India's largest travel platform
Founded in 2006, it is an Indian travel portal and travel search engine which provides real-time travel information enquiries, covering flights, trains, buses, taxis and hotels segments. Users can book tickets and compare prices on their website and app.
Project highlights:
Combine the business model of Qunar.com and Ctrip.com. Cut in transactions as a travel information platform, allowing users to book tickets directly on the platform.
Huge amounts of users with strong growth. The growth of MAUs reaches 100% last twelve month with 92% of MAUs coming from direct and organic traffic. Reaching 23 million mobile MAU which is #1 in travel industry.
Company Name: Let's Transport
Company Introduction:
Indian "Lalamove" - India's leading O2O distribution platform
Founded in 2015. Its headquarters are located in Bangalore, India, and focused on solving efficient transportation problems in urban distribution. Through the platform, utilize idle capacity of trucks can match itself with demand requirements in marketplace, and it provide transportation services for large and medium-sized enterprises, supply chain companies and local retailers.
Project highlights:
India's logistics market can be transformed into a huge space, and the company will become a strong competitor in urban distribution field with a novel model.
Rapid development speed and efficient capital utilization.10K+ registered drivers and has been forefront of the industry.
Company Name: Kissht
Company Introduction:
Indian "JD Finance" - India’s Leading Consumer Fin-Tech Company
Founded in 2015. It is an Indian installment and E-lending platform which provides instant credit to consumers for online and offline retailing in consumer durables, electronics, medical and educational products field.
Project highlights:
Experienced Team: MD and CEO are former McKinsey general managers who have advised 30+ Banks / NBFCs in Asia on retail credit.
Excellent Performance: loan IRR of 32%, NPA of <1.5%,RoE* of >30%.
Company Name: PerkFinance
Company Introduction:
A financial service platform for enterprises providing employee loan
Founded in 2018. It is an online financial technology service platform headquartered in Bangalore, India. It mainly provides short-term and microfinance loan services to corporate employees through loan partners.
Project highlights:
There is still a trillion-market size in India's E-lending market which can cover 140 million users.
At present, there are 50 companies onboard, and more than 2000 loans can be released within three months. They will enter derivative areas like mortgages and car loans in the future which is expected to bring about 14% of revenue for every single loan.
Company Name: Kredily
Company Introduction:
India's fastest growing SME human resources management platform
Founded in 2017, a SME human resources management platform. Through the self-developed HR and payroll software, it helps the enterprise human resources department to improve management efficiency. The software will be used to provide financial services to banks, insurance companies and other financial institutions for the salaried employees of the company in the future.
Project highlights:
Strong Growth in Performance: At the end of 2019, it will become the largest human resources management platform in India.
Efficient and Low-cost Customer Acquisition: Providing free HR and payroll software to enterprises in order to reach high-quality credit groups with low-cost financial products.
Company Name: Mylo
Company Introduction:
Indian "Babytree"-India Local Professional Interactive Parenting Community
Provide a reliable parenting guidance and interactive community platform for young mothers. Provide information service through UGC and PGC, and provide tool service to allow mothers to record and share baby information on platform. By selling maternal and child products and providing commercial services to realize monetization in the future.
Project highlights:
Personalized Service: Serving mothers of different stages, different languages and multiple children.
Community Service: Provide an interactive platform for experts and KOLs’ opinions. Implant loyalty points activities in APP to improve user adhesion and public praise.
Company Name: Delhivery
Company Introduction:
Indian "SF Express"-India’s leading fulfilment and technology platform for digital commerce
Founded in 2011. Provide third-party logistics and warehousing services for India local E-commerce platform, physical merchants and enterprises. It currently covers about 1700 cities in India, with more than 2500 direct distribution centers and more than 5000 affiliated distribution centers.
Project highlights:
It is the absolute leader of India E-commerce logistics industry. Cover nearly 1/4 of the E-commerce order distribution service and serve more than 3000 E-commerce platform and business customers.
Provide complete warehousing infrastructure and service according to the combination of logistics supply chain and technology. Integrate users order information and related data providing additional value-added services for merchant customers.
