14.2 myntra.com - b-plan summary
TRANSCRIPT
Myntra: B-Plan Summary
www.myntra.com
MYNTRA INTRODUCTION
www.myntra.com
What is Myntra
Myntra is the one-stop shop for…Creative, unique and personalized consumer products
For individuals, groups, colleges & corporations to creatively express their personality/brand say things to loved ones in style and
in essence ‘be creative’ share a sense of belonging to a thought, a cause or a belief
www.myntra.com
Vision
To become the most innovative personalization company in India
www.myntra.com
Myntra TeamName Background Expertise
Mukesh Bansal, CEO(Nov, 06 - present)
IIT-K CSE, 11 yr exp, 4 early stage start-ups [Newscale, Centrata, Ewanted, Nextag],
Product Management & Marketing
Ashutosh Lawania, VP Engg.(Nov, 06 - present)
IIT-K, 9 yr exp, Meritos, Mitoken Over 10 enterprise & ecommerce products
Vineet Saxena, VP Operations(Nov, 06 - present)
IIT-K, 9 yr exp; Tavant Technologies, Pramati Technologies
Performance architect, built app server, designed and implemented proceses
Raveen Sastry, VP Biz Dev(Dec, 07 – present)
MBA, McGill, 8 yr exp; Xora, IPTouch, Netcraft
Product mgmt and Channel partnerships
Rahul Agrawal, Dir. Marketing(Aug, 07 – present)
MBA, IIM-B, 2 yr exp, Ambit Finance Investment banking
Sankar Bora, VP Sales(Feb, 07 – present)
NIT Engg., 9 yr exp; Tavant Technologies, Trigyn
Managed large projects, events management exp
VP, Marketing [to be hired] Seasoned marketing professional with strong brand development exp.
VP, Products [To be hired] Product conception, sourcing, R&D
www.myntra.com
Milestones
Revenues grew 5-fold during Sep-Apr period [25% month over month]
– on track to hit US $1 million annual run rate in Q3, 2008
Strategic partnerships with CricInfo, Ibibo, BigAdda, Indyarocks, SabMiller,
Godrej, Kotak Mahindra bank, Centurion Bank, Percept (Hanuman returns)
Strong foothold among designer community
Over 15,000 published designs, 2500+ active designers
#1 in this space in India in terms of traffic [alexa: 1,110] and product offerings
Developed capability to handle up to 400 unique orders per day
Great success in hiring talented individuals who are working well as a team;
total team size: 22 people
www.myntra.com
Story so far
Nov, 06
Feb, 07
May, 07
Sep, 07
Oct, 07Nov, 07
Feb, 08
Apr, 08
Company Incorporation
Launched the beta site
Closed the seed round [200K]
Active Marketing, Revenue of Rs 2 lacs/month
Launched the affiliate program
Market Launch
Jan, 08
Crossed Rs 10 lacs/month revenue
Bridge Round (400k)
Founding Team, $75K start-up capital
www.myntra.com
Story ahead
Aug, 08
Sep, 08
Oct, 08Nov, 08
Dec, 08
Jan, 09Mar, 09
Achieve $1 million run rate
50 brand shops live
Achieve 10,000 visits/day
Cross $350K in quarterly revenue
Start sales office in Delhi/NCR region
$1.25 million revenue for 08/09
Feb, 09
Get 20K+ online orders for Valentine/Holi
Close Series A Funding
www.myntra.com
MARKET
www.myntra.com
Relevant Market Data - India Total addressable personalization market is over $ 1.2 billion
Growing 20% per year Personal Gifting
Over 10,000 gift shops in India Archie's has about $25 million revenues. Revenue expected to double by
2010 Over 100 personalization kiosks doing about $10 million business
Corporate Gifting Total corporate gifting market is about $2 billion Top 10 cities having multiple players in the $10-$25 million range
Merchandize Bollywood merchandize is expected to be $200 million business by 2010 Major growth expected in sports merchandize as an influence of franchise
model for cricket
www.myntra.com
Market Trends – around the world
Personalized gifting market in US is estimated to be over $27 billion Hollywood, Colleges, Corporate
Online personalization companies in US are growing rapidly Zazzle going from $20 million to $80 million in 2 years Cafepress did $120 million in 2007, expected to grow 30% this year Over 10 companies at $10 - $30 million revenue rate; growing rapidly
Accelerated Innovation in personalization space Direct printing /Sublimation technologies have improved drastically
over last 4 years. Toys/Kids products are one of the fastest growing categories
Buildabear.com is at $500 million revenue Mytwinn has built a multi million dollar business in few years
Personalized photo-books, bags, watches, furniture etc. are becoming popular
www.myntra.com
Key Market Insights/Trends
Individuals
People making over Rs 20,000 per month tend to give 5-10 gifts/year
People spend considerable amount of time/money for a unique gift Willing to pay a premium for their gift to stand out.
Individualization is increasing among the youth Strong desire to stand out from the crowd
Groups
Companies /Colleges keen on having online interface for merchandize
Strong demand for creative designs for group merchandize.
The groups business with companies/colleges is very repetitive.
www.myntra.com
Target Market Segments
www.myntra.com
Segment Engagement ModelSegment Marketin
gSales Mode Paymen
tFulfillment
Individuals Affiliates, SEM, SEO, Referrals
Myntra.com, Offline POS
Online, Offline
Credit card, Net banking, Check, Cash
Inhouse,Outsourced
Groups Affiliates, SEM, SEO, Private interface
Tele sales, gradually moving to online
Online, Intranet, Offline
Credit card, Net banking, Check, Cash
Inhouse,Outsourced
Organization Direct marketing, trade fairs
Direct sales Intranet, Offline
Cheque, bank transfer
Inhouse,Outsourced
Brand Managers
Direct marketing, trade fairs
Direct sales Online, Offline
Cheque, bank transfer
Inhouse,OutsourcedProduct Requirements for Segments
Individuals Groups, Organizations, Brand Managers
Self created designs or published designs
Products that can be individually personalized
Custom designs based on a theme
Much bigger set of products
www.myntra.com
Market Traction
Organizations
IIM - BLR
IIT - KGP
Partners
Consumer Traction
300K page
views/month
25K registered users
Over 5000 orders
Orders from 400+
cities
Peak of 250 orders/day
15,000 designs
2,500 designers
www.myntra.com
Industry LandscapeOffline
Kiosks
Online Players Product
Retailers
Corporate
gifting players
Photo sharing sites Pure play
personalization
Profile Small boutique
shops with local
operations
Start-ups like
PicSquare, Itasveer,
zoom.in, canvera
Myntra [leader],
dilsebol, hepfly,
inkfruit, pringoo
Pre-designed
products, e.g.
Tantra t-shirts
Small to medium
scale family
businesses
Presence Malls & Big Cities Online presence Online presence Retail stores 4-5 big players in
each top 10 city
Strengths Targeted &
Focused Offering
Gaining mind-share
as online photo
printing grows
Focusing on building
the platform for on-
demand
personalization
Fashion
Designers,
distribution
network
Long term accounts,
strong sourcing
capabilities
Weakness Limited Reach,
Pre-defined
designs
No design library Small teams, scaling
up will be a challenge
Limited set of
products, pre-
defined designs
No technology, no
design capability
and no
personalization
Threat Medium Medium High Low Medium
www.myntra.com
Competitive ComparisonCompany Alexa
(in India)Designer Community
# Published Designs
# Personalization Products
Online Affiliates
Pure play personalized merchandize companiesmyntra.com 1,147 Yes 15,000+ 18 products Over 20
affiliates
xtees.com 15,003 No < 1000 10 products none
dilsebol.com 33,112 Limited < 300 4 products 3-4 colleges
Gnome.in 62,867 Yes <100 Only t-shirts none
Hepfly.com 38,669 No N/A Only t-shirts none
Pringoo.com 5,343 Yes 1,700 7 products none
Photo printing companiesPicsquare.com 3,083 No N/A T-shirt, Mug and
photosnone
Itasveer.com 9,319 No N/A T-shirt, Mug and photos
none
Zoom.in 3,475 No N/A T-shirt, Mug and photos
none
Canvera 65,487 No N/A Specialty Photo product
Offline photographers
Corporate gifting players
All top ten cities in India have 3-6 corporate gifting players in the range of $5million to $20 million revenue.
www.myntra.com
PRODUCT OFFERING
www.myntra.com
Product/Service Offering
Create your own product Buy from design library Sell your designs
CoastersT-shirt Polo T-shirtKey-chains Mugs
Posters DiaryGreeting Card
Plate Watch Teddy Bear Pendants Piggy Bank Pencil Box SweatshirtOu
r P
rod
uct
s
www.myntra.com
Product Strategy
Continuous product innovation Enable personalization for new products Offer trendy and fresh products Provide new parameters for personalization
Increase margins steadily High to premium pricing Strive for exclusivity in product offerings
Rich and topical design library Keep the content current, trendy and fresh Cater to diverse customer tastes
www.myntra.com
Personalization Platform
Platform for on demand customization
Personalized groups gifting
Content monetization for affiliates
Hosted niche merchandize portals
Individually personalized products
Designer Community
Licensed Content
Automation
Customization tools
Myntra.com portal
Processes Supplier Network
Product R&D Sourcing
www.myntra.com
Entry Barriers
Designer Community: There is a huge first mover’s advantage in building a loyal designer
community Affiliate Partnerships
It takes considerable time and effort to build a large number of active affiliates and the cost for switching is very high for affiliates
Back-end Automation Mass personalization requires highly efficient and automated
operations/sourcing which can only be built over a period of time Brand
Building a consumer brand takes time and overcoming this will be a big challenge for a new entrant
www.myntra.com
SCALING THE BUSINESS
AND
EXPANSION PLAN
www.myntra.com
Business Model
08-09 09-10 10-11 11-12 12-13
Cost of Goods 61% 49% 45% 44% 43%Gross Margins 39% 51% 55% 56% 57%
Sales & Marketing 40% 25% 25% 20% 20%G&A 48% 32% 23% 19% 16%Net Margin -49% -6% 7% 17% 21%
Product Categories
Individuals (online)
Individuals (offline)
Groups (10-50)
Groups (50-200)
Apparel 50% 55% 35% 20%
Ceramics 60% 70% 50% 25%
Paper based 60% 50% 35% 20%
New Products
65% 65% 40% 30%
Margins by product category/segments: (Rs 100 – Rs 500+ per item)
Gross/Net margins by fiscal year
www.myntra.com
Expanding the market presence
Establish online interfaces for colleges, companies and websites 200 by end of FY 08-09 - >20 lacs/month 500 by end of FY 09-10 -> 50 lacs/month
Expand offline POS and Kiosk presence 15 by end of FY 08-09 – >30 lacs/month 50 by end of FY 09-10 – >1 crore/month
Establish sales/marketing presence in other cities 3 cities by FY 08-09 -> 60 lacs/month 6 cities by FY 09-10-> 1.5crore/month
Scale –up the direct online traffic 15,000 visits/day by FY 08-09 -> 15 lacs/month 40,000 visits/day by FY 09-10 -> 50 lacs/month
www.myntra.com
Cash-flow projections
www.myntra.com
Product Roadmap
Personalization Products Toys Sports Accessories School Supplies Fashion Accessories Home Decoration Items Learning Kits Virtual Creations
Functional Roadmap Photo products interface Plug-ins for social networks Designer marketplace Mobile interface Self Service affiliate set-up Promotional tools for
designers Premium designer shops
www.myntra.com
Challenges
Scaling this business requires very sophisticated operations
and distribution logistics
Expanding across geographies and products requires process
innovation and automation on a large scale
A large chunk of our target market is still offline or available
via indirect channels – requires innovative sales channels
It is imperative to introduce new products on a regular basis
to command premium pricing
www.myntra.com
OPPORTUNITY SUMMARY
www.myntra.com
Opportunity Assessment
The burgeoning middle class with disposable income is ready to lap-up the personalization products
The gifting market is going through a major re-haul and ready to accept new innovations.
The college/corporate merchandize business is highly inefficient & fragmented.
Can be readily captured using smart solutions/products Bollywood and Cricket merchandize markets are grossly
untapped in India. Both are all set for rapid growth over next few years.
www.myntra.com
Exit
We plan to file for IPO in year 2012 when we would be cross USD 50 million in revenue [expect 3-6x revenue multiple]
There are a few other exit possibilities including: A foreign player entering Indian market E.g. cafepress,
zazzle etc. Content rich web properties looking to monetize
content/traffic e.g. Bigadda, Ibibo etc. Companies betting on online ecommerce in a big way E.g.
Reliance retail, Futurebazaar.com
www.myntra.com
APPENDIX
(Supporting Slides)
www.myntra.com
Organization: Employees Employees
Team Strength: 22 Product Engg: 5, Marketing: 3, Sales/BizDev: 5, Operations: 8, CEO/HR: 2
5 employees from IIT, 2 from IIM, 1 from McGill (MBA), 1 from REC Board
Sasha Mirchandani [Mumbai Angels] Gagan Kumar [Erasmic] Mukesh Bansal [Myntra] Ashutosh Lawania [Myntra]
Advisors Shantanu Bhagwat: Amadeus Capital Priyank Garg: Director Search, Yahoo Rohit Agrawal: CEO, Techtribe Networks Shiva Kumar: CEO, Apparatus Media Labs
www.myntra.com
Share-holding
We have also raised USD 400K in April, 08 as a bridge round that will convert into equity as part of next round
www.myntra.com
Capital
We will plan to deploy $4 million over next 2.5 years in following fashion: Sales/Marketing presence in 15 cities: $0.8 million 100 Physical Kiosks/Mobile Units: $1.0 million Myntra website, platform usability/scalability: $0.4 million Product Sourcing/R&D: $0.3 million Capital Equipment: $0.7 million Brand Development/Strategic Marketing: $0.5 million Establishing 1000 sales agents: $0.3 million
www.myntra.com
Sales Channels
Channel Description
Online - Direct Customers buying directly at the myntra.com portal
Online - Affiliates Customers buying through affiliate site such as another content site, alumni site, company intranet, event site etc.
Sales Agents Designated agents in gift shops, colleges, event managers and social groups for incentives based sales
Sales Team Direct sales force signing companies, colleges, event management companies and gift shops as customers
Offline POS Point of sale at various gift shops and novelty stores where customers can browse designs via a terminal and place the order that is fulfilled centrally
Kiosks Kiosks in malls, retail outlets, college and company campus. Kiosks will display various product samples and have limited fulfillment capabilities
www.myntra.com
Monthly Metrics [Sep,07 to May, 08]
www.myntra.com
Market SizeMarket Segment # Users Avg. spend per
personMarket Size
Individuals IT/BPO Professionals
2 million $50/year $100 million
College Students 10 million
$25/year $250 million
Non-IT Professionals
15 million
$20/year $300 million
Kids 10 million
$20/year $200 million
Total $850 million
Market Segment # Groups
Avg. spend per group
Market Size
Groups Project teams 0.2 million
$250 $50 million
Parties/Events 2 million $100 $200 million
Colleges 10,000 $2,500 $25 million
Schools 50,000 $1,000 $50 million
Total $325 million
Total Addressable Market $1175 million
We expect that the overall market is growing 20% per year and will double in 4 years
www.myntra.com
Differentiators
www.myntra.com
Value Proposition
Individuals
Large number of product categories for on-demand customization
Designer community offering current, topical and relevant designs
High quality products and excellent customer service Groups
Get a private interface for branded merchandize of the organization
Use our design services for creative designs for merchandize
Individual personalization for group gifting