Kinnevik Rocket Capital

Markets Day
May 2014

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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,
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statements of future expectations and other forward-looking statements that are based on our current personal views and assumptions and involve known
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Disclaimer
Namshi: fashion ecommerce market leader in the Middle East
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 Largest in-season fashion
ecommerce player in the Middle
East
 Current focus on 6 energy-rich
countries of the Gulf Cooperation
Council (GCC): Saudi Arabia,
United Arab Emirates, Kuwait,
Qatar, Bahrain, Oman
 200 employees across offices in
Dubai, Saudi Arabia, and India
 Own warehouse in UAE stocked
with inventory & own last-mile in
UAE
 Key focus on unrivaled product
assortment and excellent
customer experience
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 Namshi’s current focus is the GCC
region, which represents USD
1.6tr GDP and a population of
50m with ~4-5% GDP growth
2

 Clear opportunity for fashion
retail: AT Kearney ranks 3 GCC
countries in top 10 countries
globally for apparel retail
investment opporunity
3

 High online engagement: Saudi
Arabia has highest Twitter
penetration in the world and
among the highest on Facebook
and Youtube
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Gulf Cooperation Council (GCC)
USD 3b GCC fashion ecommerce market by 2018
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1. Visa MENA eCommerce Report 2013; Alpen Capital GCC Retail Industry Report 2012; Namshi calculations
2. World Bank databank (http://data.worldbank.org/; accessed May 2014)
3. AT Kearney Global Retail Development Index 2013
4. PeerReach
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E-Commerce well poised to circumvent many challenges of offline
fashion retail in the Middle East
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Underdeveloped
retail
infrastructure
Monobrand retail
culture
Fragmented
markets
Hiring challenges
Cultural
challenges
Namshi provides broad & differentiated assortment, with strong
private label and over 70% of brands sourced internationally
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SS14 Revenue Split
40%
20%
40%
Clothing
Accessories & Bags
Shoes
Exit
Price
Entry
Price
Basic Style
Middle East offers many opportunities for those that can manage the
operational challenges…
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 Low credit card penetration & high
COD
 Underdeveloped delivery
infrastructure: lack of street
addresses and qualified 3
rd
party
providers for logistics and lastmile
 Many countries: fragmented markets
& international customs issues drive
operational complexity
 Hiring & talent shortages: strong
reliance on expat workers in GCC
makes hiring and scaling processes
difficult
 Poor customer experience
from other international
and local competitors
 Fragmentation and
operational complexity
drives high cost & need for
strong technology to
manage complexity
… which Namshi has overcome through own warehouse, own last-
mile, & strong technology-driven processes
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Operate own
warehouse based in
UAE to control critical
fulfillment and quality
processes
Own last-mile delivery
in UAE to deliver
flawless end-to-end
customer experience
Strong technology
platform & India
backoffice to manage
complexity & ensure
customer experience
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Strong online marketing
presence with excellent
payback on customer
acquisition
Recently started offline
marketing, including TV,
focused on building the Namshi
brand and customer trust

~600k fans
#1 lifestyle app in
KSA & UAE
~400k subscribers
Strong online marketing presence & recently introduced TV
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 Share of mobile phone traffic has
tripled year-over-year

 Goal is to provide optimized
experiences for all major
platforms: desktop, mobile &
tablet on both web and app

 iOS universal app launched in
March, Android coming in June
Mobile-optimized website and apps drive 60% of user sessions
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At end of 2013, over 100k customers with high loyalty & growth, as
well as unique assortment and ops platform poised for growth
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Customer base
000s
 Served over 100k
customers to date, with
over 90k active in last 12
months
 Over 150k orders in 2013
at high average order
value
 Best ecommerce
customer experience in
region driven by strong
in-house ops platform
 High loyalty &
repurchase rates driven
by assortment &
experience
100
30
2013 2012

Orders
000s
150
60
2012

2013
Hosam Arab
Founder &
MD Buying
Faraz Khalid
Founder &
MD Operations
Hisham Zarka
Founder &
MD Marketing
Namshi’s leadership team
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