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2
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FID
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www.goodly.co.in
India Online is a market place (tab application) for students, focused on aggregating educational content & mock tests for national & other state exams.
TRANSACTION SNAPSHOT
India Online
CATIIT-JEECPMTIAS
AIEEEBANK PORAILWAYS
NDA
Students
Coaching Institutions
Business Model
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
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 20-30% margin on each transaction
Student Acquisition and Projected RevenuesFunding 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
120Lac
1.4mn
1200Lacs
3.7mn
3000Lacs
6.4mn
5500Lacs
2014 2015 2016 2017
Students Transacting on the Platform Approx Revenues in Lacs
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www.goodly.co.in
India Online is a project launched by Info Solutions Pvt Ltd, an IT Company based out in Main City, started in year 2006
COMPANY OVERVIEW
Graph not accurately scaled to time
2007-09 2010 2011 2012 2013 2014
Financial Years
Started Delivering IT Solutions
Offshore delivery center in Hyderabad & Main City
Started a business office Houston & Seattle
Started developing mobile apps & games
Won mobile application project for Procter & Gambler
Ventured into animation domain
Developed & Patented applications for diabetic care
India OnlineConcept Initiated. Launching Early Dec 2013
Company Snapshot
Share-Holding Pattern (India Online)
80%20%
Directors Parent Company 5%Mr A5%Relatives5%Mr B5%
“Post fund infusion ‘Advisory Investment Bank’ will hold 20 % of the total paid up capital in this project.”
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MARKET OVERVIEW
Tablet Market In India
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
3.6 19
Tab Sales (Lacs)
2011 2013
$2 bnThe Indian tablet market size
33% CAGRforecasted growth rate for TAB sales till 2018
56.5%22.5%
6.2%1.9%
12.8%
SamsungAppleRIMHCLOthers
7.3 Mn UnitsExpected to be sold by 2016
Market Share (2012)
Exam Applicants - Currently Addressed Market
CAT - The number of applicants for CAT in 2013 dipped to a five-year low
JEE - Registered highest ever registrations for the JEE-2013 exams
AIEEE - The number of applicants in AIEEE-2012 were 1.3 million, in 2011- 1.1 million
GATE - A total of 12,00,728 candidates registered for GATE 2013 and 9,84,855 candidates appeared for the exam
BANK PO - 7,51,032 candidates appeared for bank PO exam on June 17, 2012
Other State Exams – The targets to cater another 5 lac candidates for miscellaneous state exams
Total Target Students
1.96 Lac
14 Lacs
13 Lacs
~12 Lacs
~7.5 Lacs
~5 Lacs
~52 Lacs
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REVENUE
India Online
70%30% Revenue Split
`
`
Coaching Institutions
Revenue Channels
• 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.
Students Acquired FY 2014
Students Acquired FY 2017
Student base of ~55 lacs. Weighted Average acquisition 1.35%
Student base of ~73 lacs. Weighted Average acquisition ~15 %
75 k
1 mn +
Students Transacting on India Online
Revenue Model
Revenue Snapshot (in lacs)
2014
2015
2016
2017
50
367
440
103
15
325
1192
2027
51
527
1441
3388
116
1218
3073
5518
Total
One Time RegistrationsStudent from InstitutesStudents PAN India
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CUSTOMER ACQUISITION & TRACTION
Chennai Chandigarh Allahabad Nagpur Pune
NCR Aligarh Banaras Raipur Hyderabad
Gaziabad Lucknow Jhansi Kolkata Cochin
Agra Kanpur Main City Mumbai Bangalore
Top 20 Cities for Launch
Coaching Institutions Open Market
Currently tied up with 20 Institutes With a student base of 60k
Plans to reach 1.1 mnactive 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 includeo The Academy – Mumbaio Coaching Classes – Main City
• The company will go for a PAN India aggressive marketing plan to increase the student traction for its application
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www.goodly.co.in
BUSINESS OPERATIONS
Sales & IT team
Marketing efforts
Shopping allowances
Servers & IT infrastructure
Rent & admin
• 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.
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.
The company will also deploy nearly 5-8 professional for HR and support functions
• 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- 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
• 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
183%
As a % of Revenue
9%
16%
48%
12%
5%
1%
2%
INR 80 mn cost capitalized over 3 Yrs
2014 2017
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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 Contento Create, Manage & Price the Productso 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
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
KEY FEATURES & USPs
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COMPETITIVE LANDSCAPE
UdemyConcept: 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
EdufireConcept: 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 SchoolConcept: 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
MentorMobConcept: 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
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COMPETITIVE LANDSCAPE
KnewtonConcept: 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.
GrockitConcept: 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
MBS DirectIt 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.
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FINANCIAL SNAPSHOT
115.5
1218.5
3072.9
5518.2
(180.4)372.0
1946.0
4244…
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 3388.0Total Revenue for India Online 115.51218.53072.95518.2
Growth in Revenue 0% 955% 152% 80%
EBITDA Margin (180.4) 372.0 1946.0 4244.7
Margin -156% 31% 63% 77%
EBIT (221.6) 218.8 1747.6 4028.3
Margin -192% 18% 57% 73%
EBT (221.6) 218.8 1747.6 4028.3
Margin -192% 18% 57% 73%
PAT (221.6) 218.8 1208.5 2783.6
Margin -192% 18% 39% 50%
Revenue v/s EDITDA (Lacs) Income Statement (Lacs)
Comments• The company will be profitable in year 2015
• The revenues are expected to exceed INR 50 Crs by the 3rd year of operations
• Economies of scale will effect the EBITDA Margin, soaring to ~75 % with PAT touching nearly 50% within 3 years of operations
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FUNDING INFUSION AND APPLICATION
287.95 25.23 0.00 0.00287.95 313.18 313.18 313.18
2014 2015 2016 2017 Total
-100 -400 -200 -100-133.95 431.17 1,427.90 3,007.94
-54 -56.4 -12 0 -100-133.948
1 -54
Application of Funds
Investment in MarketingCash from OperationsInvestment in IT Infra
313.18
287.9
25.2
0.0 0.0
2014 2015 2016 2017 Total
(100.0)
(133.9)
(54.0)
287.95 25.23 0.00 0.00287.95 313.18 313.18 313.18
2014 2015 2016 2017 Total
-100 -400 -200 -100-133.95 431.17 1,427.90 3,007.94
-54 -56.4 -12 0 -400431.1697
2 -56.4
Application of Funds
Investment in MarketingCash from OperationsInvestment in IT Infra
313.18
287.9
25.2
0.0 0.0
2014 2015 2016 2017 Total
(400.0)
431.2
(56.4)313.18
287.9
25.2
0.0 0.0
2014 2015 2016 2017 Total
287.95 25.23 0.00 0.00287.95 313.18 313.18 313.18
2014 2015 2016 2017 Total
-100 -400 -200 -100-133.95 431.17 1,427.90 3,007.94
-54 -56.4 -12 0 -400431.1697
2 -56.4
Application of Funds
Investment in MarketingCash from OperationsInvestment in IT Infra
313.18
287.9
25.2
0.0 0.0
2014 2015 2016 2017 Total
(400.0)
431.2
(56.4)
Application of Funds (Lacs)Funding Requirement (Lacs)
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
2014 2015
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MANAGEMENT TEAM
Mr Robin Troop (Director)
Mr Peter Andre (Director) -
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PAST TRANSACTIONS
Company Investor Funding Details
Knewton
Founders Fund & Pearson, along with existing investors Accel Partners, Bessemer Venture Partners & FirstMark Capital
$ 33.0 mn N/A
Udemy Lightbank $ 1.0 mn Have raised a total of $16 mn
SuperCool School Angel Funding $ 100 k N/A
Edufire
Battery Ventures along with Google AdSense godfather Gokul Rajaram and Western Technology Investment participating
$ 1.3 mn N/A
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