Kinnevik Rocket Capital Markets Day

Berlin, May 22
nd
2014
Disclaimer
2
The information contained in this presentation is public information only, but it does not necessarily
represent all information related to the issues discussed or presented herein, or all views of the
company. The information has been researched by the company with due care and all and any
evaluations or assessments stated herein represent the company’s opinions. We advise you that
some of the available information has been independently verified and may be based on statements
by third persons, but no representation or warranty, expressed or implied, is made as to, and no
reliance should be placed on, the fairness, accuracy, completeness or correctness of this information
or opinions contained herein. Certain statements contained herein may be statements of future
expectations and other forward-looking statements that are based on our current personal views
and assumptions and involve known and unknown risks and uncertainties that may cause actual
results, performance or events to differ materially from those expressed or implied in such
statements. None of our team shall assume any liability whatsoever (in negligence or otherwise) for
any loss or unrealized profit whatsoever arising from any use of this presentation or the statements
contained herein as regards unverified third person statements, any statements of future
expectations and other forward-looking statements, or the fairness, accuracy, completeness or
correctness of statements contained in the presentation, or otherwise made in connection with this
presentation. This presentation does not constitute an offer or invitation to purchase or subscribe
for any investment and neither this presentation nor any part of it shall form the basis of or be relied
upon in connection with the entering into any commitment or contract whatsoever, and is solely
intended to communicate information regarding the company, its business track-records and team
members. No one should base their investment decisions on this presentation but should form their
personal opinions on the basis of further available information and evaluations and assumptions. In
addition, any prospective investor should consult its own attorney and business advisor as to the
legal, business, and tax and related matters concerning any investment decision.
Management Summary
• India is expected to become one of the largest e-commerce markets in the
world
• Jabong presents a unique and comprehensive customer proposition
• Jabong has risen to a leading market position in a short span of time
• Best in class logistics and operations in a complex infrastructure environment
3
Market Opportunity: Tier 2 and Tier 3 cities are being
underserved by traditional retail
4
29%
15%
56%
30
11
2
41 25
8
28
26
14
Physical Retail Stores distribution
Lifestyle Pantaloons Shoppers Stop
37%
28%
35%
Jabong’s
revenue distribution
#
• Physical retail stores are not fully satisfying the real
demand from the tier 2 and tier 3 cities
• E-tailers are poised to tap the pent up demand in these
cities
• Jabong’s revenue-split matches the population-split better
than traditional retailers
Source: Retailers website, Hindustan times report- Nov 2011
#
Jabong’s revenue distribution in Q1 2014
Actual urban population distribution
Tier 2 Tier 3 Tier 1
480
245
120
102
583
279
~375
105
China USA India Japan
2012 Internet user base
2015F Internet user base
Source: Internet World Stats (2010); Business Monitor International; McKinney Analysis
Market Opportunity: India’s Internet population reach
~375 mil by 2015 - the 2
nd
largest in the world
Internet users across major economies
Number of internet users (millions)
3x
5
Market Opportunity: E-commerce pie at $16bn by 2017
6
15X
Electronics
37%
Apparel &
Accessories
38%
Coupons
& Deals
3%
Books
3%
Others
19%
15X
8X
Electronics
64%
Apparel &
Accessories
20%
Coupons
& Deals
3%
Books
5%
Others
8%
E-commerce market
Source: Google analysis
Total E-comm market $2bn
Fashion E-comm market $400mn
Total E-comm market $16bn
Fashion E-comm market $6bn
2012 2017
Value Proposition: An inspiring and engaging fashion destination
• Jabong aims to be the hub for all things
fashion for Indian youth.
• Our target audience is young at heart,
contemporary in mindset, aspirational,
and fashion forward.
• Through a combination of top national,
international, as well as own brands, we
provide our customers latest in trends
and fashion at great value.
• Our blog, magazine, and social media
platform inspires the youth with the
latest in trends, styles and looks
• In our communication, we exude
youthfulness, energy, style and
accessibility across all touch-points.
7
Value Proposition: Jabong offers the comprehensive fashion
catalog in India
8
34
54
22
55
14
28
Q1 2013
Q1 2014
Consignment
Marketplace
Outright
1.8x
2.5x
2.0x
1,155
1,744
Q1 2013 Q1 2014
+51%
No. of Styles (in ‘000s) by
Inventory type
#
No of brands on Jabong
#

18%
22%
20%
23%
6%
5%
4%
Men Apparel Men Footwear
Accessories Women Apparel
Women Footwear Kids
Others
Category revenue mix (Q1 2014)*

* Based on Revenue excluding tax (net of cancellations and returns )
#
Quarter-end figures Q1
Accessories includes Bags, Sunglasses, Jewellery and watches
Fast rise: Strong growth in customer base and orders
15%
27%
36%
37%
43%
47%
51%
Q3
2012
Q4
2012
Q1
2013
Q2
2013
Q3
2013
Q4
2013
Q1
2014
9
21.6
34.9
37.3
40.3
51.7
71.3
78.5
Q3
2012
Q4
2012
Q1
2013
Q2
2013
Q3
2013
Q4
2013
Q1
2014
Returning customers proportion Total customer base (‘000)*
Unique visitors (millions) Quarterly orders
#
(‘000)
488
749
1,049
1,386
1,800
2,340
2,887
Q3
2012
Q4
2012
Q1
2013
Q2
2013
Q3
2013
Q4
2013
Q1
2014
548 554
720
854
1,132
1,776
1,950
Q3
2012
Q4
2012
Q1
2013
Q2
2013
Q3
2013
Q4
2013
Q1
2014
* Total number of people who have transacted on the portal till the end of the period
# Gross orders
Fast rise: Steady increase in loyalty and happiness
10
# of customers transacting in the quarter Orders per customer
328,196
401,232
521,244
712,118
794,943
Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014
1.39
1.38
1.43
1.58
1.63
Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014
% of orders
fulfilled
Metrics
99.3%
99.6%
Delivery TAT
Service Level
88%
95%
Product Go
live TAT
5.17
3.88
Returns
processing TAT
5.25
4.67
% first call
resolution
79%
81%
% Inbound
calls per order
48%
46%
Q4 ‘13 Q1 ‘14
11
Operations: Achieved best in class operations in a complex
operating environment
• Total warehouse capacity of 215,000 sq ft
• Delivery service to ~12,000+ pincodes across
the country
• Jabong now reaches 630+ cities
• 24*7 email operations
Key highlights
Innovative Service offering
Open
Delivery
Cash on
Delivery
& Swipe
on
Delivery
Partial
return
CEO and
Founder
Jabong Leadership: A highly motivated and driven management
team
MD and co-
Founder
Head Men’s
Wear








Puneet Gupta
Head Women’s
Wear








Manjula Tiwari
Head Market
Place







Rukaiya
Kanchwala
Head
Technology








Harsh Kundra
Head Finance








Vinod Abrol
Head HR









Ashu Malhotra
Head
Operations
(OF)







Pratik Gupta
Praveen Sinha Arun C Mohan

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