India Online is a market place tab application for students focused on aggregating educational content amp mock tests for national amp other state exams TRANSACTION SNAPSHOT India Online CAT ID: 709200
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Slide1
India Online
BUSINESS PLANSlide2
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
CAT
IIT-JEE
CPMT
IAS
AIEEE
BANK PO
RAILWAYS
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 Revenues
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
1.4mn
1200
Lacs
3.7mn
3000
Lacs
6.4mn
5500
Lacs
2014
2015
2016
2017
Students Transacting on the Platform
Approx
Revenues in LacsSlide3
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 Online
Concept Initiated. Launching Early Dec 2013
Company Snapshot
Share-Holding Pattern (India Online)
80%
20%
Directors
Parent Company 5%
Mr
A 5%
Relatives 5%
Mr
B 5%
“
Post fund infusion ‘
Advisory Investment Bank’
will hold 20 % of the total paid up capital in this project
.
”Slide4
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
bn
The
Indian tablet
market size
33%
CAGR
forecasted growth rate for TAB sales till 2018
Samsung
Apple
RIM
HCL
Others
7.3 Mn Units
Expected 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 LacsSlide5
REVENUE
India Online
70%
3
0%
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)
116
1218
3073
5518
Total
One Time Registrations
Student
from Institutes
Students
PAN IndiaSlide6
CUSTOMER ACQUISITION & TRACTION
Chennai
Chandigarh
Allahabad
NagpurPune
NCR
Aligarh
Banaras
RaipurHyderabad
Gaziabad
Lucknow
Jhansi
Kolkata
Cochin
Agra
Kanpur
Main City
Mumbai
Bangalore
Top 20
C
ities for Launch
Coaching Institutions
Open Market
Currently tied up with
20 Institutes
With a
student base of
60k
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
The Academy – Mumbai
Coaching Classes – Main City
The company will go for a PAN India aggressive marketing plan to increase the student traction for its applicationSlide7
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%
1
2%
5%
1
%
2%
INR
80 mn
cost capitalized over 3
Yrs
2014
2017Slide8
For Business AssociatesReady 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 2
nd 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
Upload the ContentCreate, Manage & Price the ProductsTrack 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 StudentsNational 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 &
USPsSlide9
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 instructorsEdufire
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
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
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
textSlide10
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.
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 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
.Slide11
FINANCIAL SNAPSHOT
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
Total Revenue for
India Online
115.5
1218.5
3072.9
5518.2
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 3
rd
year of operations
Economies of scale will effect the EBITDA Margin, soaring to ~75 % with PAT touching nearly 50% within 3 years of operationsSlide12
FUNDING INFUSION AND APPLICATION
2014
2015
2016
2017
Total
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 1
st
year the funds will be utilized towards- Funding cash loss from operations, Investment in PAN India marketing activities, Investment in IT Infrastructure
In the 2
nd
year the funds will be utilized towards Investment in IT Infra. Since the company will be cash positive by the 2
nd
year, investment in marketing will be taken care by internal accruals
2014
2015Slide13
MANAGEMENT TEAM
Mr
Robin Troop (Director)
Mr
Peter Andre (Director) -Slide14
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/ASlide15
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POINT OF CONTACTSlide16
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