Building an Online Real Estate Portal in

Emerging Markets

Kian Moini

Co-Founder and Global Managing Director

Lamudi

Our mission

Our backing - Rocket Internet

Our markets – Emerging and Frontier

Seizing the Opportunity

Ability to scale

Overview

Our Mission

Building the Leading Property

Portal in Emerging Markets

Founded in

2007

+100 companies

incubated

+20 business

models

+5bn people

targeted worldwide

+25,000 people

on the ground

Backed by Rocket Internet

Rocket Internet identifies proven business models that focus on basic needs

Rocket Internet quickly builds companies for these business models using highly standardized and optimized

processes and then scales these companies to a leading position in all its markets.

1. Identify

Continuous monitoring

of customer behavior in

all markets.

2. Build

Functional experts from IT,

SEM, SEO, BI, CRM etc.

build companies from

scratch.

3. Scale

Roll out of companies to

>100 markets and aim to

scale them to #1 positions.

Global

Network of

Companies

How Rocket Internet Is Different

The Rocket Internet Success Recipe

99%

Execution 1%

Idea

Asia – Emerging

and Frontier

The Three Asias

Developed Markets Australia, Singapore, New Zealand

Indonesia, Philippines, Thailand, Vietnam, Malaysia,

Sri Lanka

Emerging Markets

Pakistan, Bangladesh, Myanmar,

Cambodia, Nepal, Laos

Frontier Markets

Lamudi

focus

Emerging Markets Philippines , Sri Lanka, Thailand, Vietnam,

Indonesia, Malaysia

38% year-on-year growth

in mobile broadband

penetration*

*wireless connection

to internet including

3G and 4G internet

Population

• 561,825,000 total population

• 176.11% of USA population

• 35-50% smartphone penetration

• 35-75 % internet penetration

• US$ 3,568

GDP per capita

Connectivity

Distinct Markets of Asia: Emerging

• Populous markets

• Smartphone penetration

increase from 21 % in 2013 to

44 % in 2018 expected*

• Limited competition

Key attractors

• Infrastructure still developing

• Consumer trust

• On-boarding local talent

Key challenges

GDP annual Growth

(average)

% Mobile Penetration Population Growth

21%

increase in

mobile penetration

2010-2013

5.2%

average increase

2010-2017

(estimated)

62.4mm

more people 2010-

2018

(estimated)

*APAC region excluding China and India

0

20

40

60

80

100

120

140

2007 2010 2013

0

1

2

3

4

5

6

2010 2014 2017

500

520

540

560

580

600

620

2010 2014 2018

Frontier Markets Myanmar, Bangladesh, Nepal, Pakistan, Laos, Cambodia

154% year-on-year growth

in mobile broadband

penetration*

*wireless connection

to internet including

3G and 4G internet

Population

GDP per capita

• 447,788,000 total population

• 140.36% of USA population

• 1-8% smartphone penetration

• 1-11% internet penetration

• US$ 1,022

Connectivity

Distinct Markets of Asia: Frontier

• Populous markets

• Very little competition

• Large verticals still open

Key attractors

• Lack of infrastructure

• Consumer awareness

• On-boarding local talent

Key challenges

GDP annual Growth

(average)

% Mobile Penetration Population Growth

52%

increase in

mobile penetration

2010-2013

6.4%

average increase

2010-2017

(estimated)

76.3mm

more people 2010-

2018

(estimated)

0

20

40

60

80

2007 2010 2013

0

2

4

6

8

2010 2014 2017

380

400

420

440

460

480

500

520

2010 2014 2018

Seizing the

Opportunity

Seizing the Opportunity

Identify

Seizing the Opportunity

Evaluate

fundamental

attractiveness Identify

Seizing the Opportunity

Invest in talent

Identify Evaluate

fundamental

attractiveness

Seizing the Opportunity

Rocket Speed

Identify Evaluate

fundamental

attractiveness

Invest in talent

Seizing the Opportunity

Scale

Identify Evaluate

fundamental

attractiveness

Invest in talent Rocket Speed

Leading online real estate portal for emerging markets

Identify

750M+ People

Evaluate

Identify

Population for most

important markets:

Prime Research Tools

We believe that great companies need

great talent

Identify Evaluate

Invest

Focus on the basic, then fill in the gaps

1h

Book a flight

to market

15

Hours

Travel to

destination

2 Days

Find an office

1 Week

Recruit team

2 Weeks

Onboard sellers

4 Weeks

Populate site

GO LIVE

Go live

SCALE

Scale

Identify Evaluate Invest

Rocket

Speed

2013

April Mai July

Indonesia

February

Bangladesh

Pakistan

Myanmar

January

Philippines

2014

Sri Lanka

April

Identify Evaluate Invest Rocket Speed

Scale

Growing at Rocket Speed

Employees

2014 2015

60

209 Lamudi Asia

Listings

2014 2015

457,870

178,263

2014 2015

7,030

Agents

2,447

2013 2015

6

Countries

1

Ability to scale

High degree of centralization

CEN

TRA

L

LOC

AL

Product & IT

Online Marketing

CRM

SEO

Business Intelligence

Operations

Sales

Account Management

PR

HR

Finance

PR

HR

Finance

Employees: 90 Employees: Ø 20 per country

Low degree of localization required

25%

Operations

Finance

PR

HR

Account Management

20%

15%

Sales

25%

25%

LOCAL FUNCTIONS DEGREE OF LOCALIZATION

20%

How Lamudi wins markets (1/2)

LOC

AL

Operations

Sales

Account Management

PR

HR

Finance

CEN

TRA

L

Product & IT

Online Marketing

CRM

SEO

Business Intelligence

PR

HR

Finance

Centralization has allowed Lamudi to develop a high degree of expertise across all core supporting functions

Learnings from key processes that are same across countries has allowed Lamudi to achieve a high degree of optimisation of those processes

25%

Operations

Finance

PR

HR

Account Management

20%

15%

Sales

25%

25%

20%

How Lamudi wins markets (2/2)

Expertise

Execution

Strategy

Access to capital

Product Above all: focus on the right

topics at the right time

Where markets are heading

50% 40%

10%

Market Leader Second Largest

Player

Other Players

Typical Market Shares in Developed Online RE Classifieds Markets

Consolidation is demanded by all stakeholders – and thus

only a matter of time for every single market

© 2015 Lamudi GmbH. All rights reserved.

Building the Leading Property

Portal in Emerging Markets