25
DraftIndia.in Junoon Khelne ka, Maqsad Jitne ka (Passion is to Play, Goal is to Win) Mariposa Digital India Pvt Ltd Kolkata India mariposadigital.com Incorporated in June, 2014

DraftIndia Mariposa Digital for Investors

Embed Size (px)

Citation preview

DraftIndia.inJunoon Khelne ka, Maqsad Jitne ka

(Passion is to Play, Goal is to Win)

Mariposa Digital India Pvt Ltd Kolkata Indiamariposadigital.com

Incorporated in June, 2014

QnA

Questions

• Why should I get involved with Daily Fantasy Sports (DFS) in India

• Why should I invest in Draft India (Mariposa Digital)

• What is my Return on my Investments

Quick Answers

• Fantasy sports industry in India to grow from $5M in 2015, to $1B by 2018, to $5B by 2020

• DraftIndia (DI) with its timing, business model and product strategy, is uniquely positioned to tap the growth and be the sustainable market leader in the Industry

• ROI will be in multiples of 100 to 1000 over the next 3 to 5 years

Encash Knowledge of SportsSafely and Proudly Brag about it

Promote Brand and Fan Engagement

Knowledge <-> Cash <-> PrideSports Fans <-> Rewards <-> Brands

Investment Thesis

Gambling falls under the jurisdiction of Public Gabling Act, 1867. Section 12 of the Act excludes ‘game of mere skill’ outside the purview of Indian gambling act

Industry Analysis

Recent News / Developments• Fanduel is supported by Comcast Ventures and is valued close to $1B;

DraftKings is supported by Atlas Ventures and is valued close to $1B; Major leagues taking equity ownerships in lieu of partnerships

• Disney invested $250M in DraftKings at a valuation of close of $900M; the invested amount to be spent on advertising in ESPN (a Disney company)

• The US market is expected to be $30B in entry fees by 2020• In India, D11 has the maximum user base because of its partnership with

Cricbuzz (Cricbuzz has recently been acquired by Times Internet); Kalari Capital (India based VC firm) recently invested close to $1M in D11

• DraftIndia receiving inquiries and interests about investments and potential partnerships from top tier US fantasy sports companies and Indian VCs

Industry size, drawing a parallel between eCom. and DFS (US and India)

eCom. Amazon Flipkart

Started 1998 2007

Limelight 2002 2012

GMV (2015) $15B $1.5B

Valuation (2015) $150B $15B

GMV (2020) $150B $15B

GMV stands for Gross Merchandise Value. DFS stands for Daily Fantasy Sports. The figures above are approximate and include personal analysis and judgment

DFS USA India

Started 2010 2012

Limelight 2013 2015

Entrée Fees (2015) $3B $5M

Valuation (2015) $3B $5M

Entrée Fees (2020) $30B $5B

Fantasy Sports Industry in India is to grow 1,000 times over the next 5 years.This is the best time for strategic partners and investors to enter!!

India tops in smartphone growth

Three-Fourth of India’s online population is under 35 years old; It’s the most attractive

demographics for fantasy sports industry; More importantly, 2015 is an inflection point when a

major economy, India is moving ahead of another major one, China

Name Started Users Paid Users Daily Entrée Fees

Yearly Entrée Fees

D11 2012 100,000 10,000 $5,000 $1M

TC 2013 2,000 300 $1,000 $150K

DI 2014 1000 300 $500 $50K

DFC 2014 1,000 100 $200 $40K

CI 2013 1000

CB 2013 1000 These cells are

CT 2015 100 left blank as

CW 2015 100 the numbers are

LG 2015 100 very small or

S11 2015 10 not clearly available

CV 2015 10

India DFS, Competitive Landscape

Site name abbreviations are used. Some sites claim higher users that may be grossly inflated. The figures above are approximate and include personal analysis and judgment based on observation of daily joins.

Market is there, but no real competition as of now! D11 started in 2009 and survived with initial investment and support from the family of the founder. An Indian VC firm’s investment

(~$1M) in early 2015 helped them to buy users. With no clear second in the industry, any player with capability to grow massively will take on market leadership and drive creation of

the future market to the fullest potential

Why DraftIndia (Mariposa Digital)

Business Plan

So the question, what is / are the ingredients to succeed???

Execution matters a lot, but Timing might matter even more

The above exhibit is taken from Bill Gross (Idea Labs) TED presentation

Question in Investors’ minds: Too late? Too early? Educate the customers? Too many competitors?

With smartphone penetration in top gear and one major Indian VC (Kalaari Capital) just kicking in $1M, TIMING is just right for investments in Fantasy Sports in India!!

Steps to Market Leadership

June, 2014 - Incorporated

July - Launched Khelo Apna Khel with Cricket

September - Introduced Soccer

December – Introduced Field Hockey

January, 2015 – Rebranded as Draft India, Responsive Design

Preparatory steps: Step by step bootstrapping; Khelo Apna Khel (June, 2014) to DraftIndia (Jan, 2015)

H2, 2015 –Sign up major B2B clients

H1, 2016 – Sign up major leagues

H2, 2016 – Reach 2 million users

H1, 2017 – Turns profitable

H2, 2017 – Reach 7 million users

Next steps: Scale up to be the market leader through unique growth strategy fuelled by partnering with consumer brands and going direct to consumers

Sweet spots and challenges

Best product features in the categoryy, Android app and AWS

Diverse product strategy, includes loyalty-rewards and social network

FSTA registered, global reach, Own score entry team

Founders have connections with major business houses in India,

Fanduel, DraftKings

Have soccer and field hockey (first in the world) in the product mix

Partnership possibilities with major B2B clients (consumer

brands) because of the links that management team has

Budget constrained for mass marketing and scale up

No partnerships as of date

Not a first mover, but may have the second mover advantage

Need of legal and IP departments

Talent gap in technology and customer service

Competition mushrooming fast, Need to capitalize on the second

mover advantage (e.g. FB over MySapce/Orkut; Gmail over

Hotmail/Yahoo mail)

The differentiations are the Product Vision / Strategy; and the Management team’s background to forge B2B relationships and the capability to reach any high (scale up)!!

Product Strategy

DraftIndia.inPaid site

India based platform

eCom format

FantasyPlayersClub.com

Paid siteGlobal platform Lobby format

DraftTalent.comFree site

For partnering who would have issues

with paid sites

Fantasy MirrorWhite label product for

Loyalty/Rewards partnerships

FanHangout.comSports based Social

Network (e.g. Linkedin) to deliver

long term value and growth

Score Data API for sale to other sites

Founder, iFSBA.orgIndian Fantasy Sports Business Association

Sports related eCommerce Store

(e.g. fansedge)

The foundation has been built; Going forward it’s a matter of scaling up and managing as per the Vision

CONFIDENTIAL

INTENTIONALLY LEFT BLANK

[email protected]

[email protected]

Revenue Streams

• B2C - Commissions from end users (India and international)

• B2B - Loyalty Rewards Partnerships from consumer business (White label solution)

• eCommerce (Sports merchandise)• Ad sale through the consumer sites• Social Network Ad and Subscriptions in the

longer run

CONFIDENTIAL

INTENTIONALLY LEFT BLANK

[email protected]

[email protected]

Best entry time to tap growth is now; Growth in company valuation will plateau beyond 2020

2015 2016 2017 2018 2019 2020

-10

0

10

20

30

40

50

60

0.1 15

15

30

50

0.2 25

10

20

40

-0.1 -1

0

5

10 10

Revenue, Cost and Profit in $M

Revenue Cost Profit

CONFIDENTIAL

INTENTIONALLY LEFT BLANK

[email protected]

[email protected]

Numbers and Scale up Plan

CONFIDENTIAL

INTENTIONALLY LEFT BLANK

[email protected]

[email protected]

Your search for the next unicorn may take a pause with us!

Management Team• The founder has worn many hats to get here. He has over 16 years of experience

working with Fortune companies in India, US and Canada. He worked with the founders of DraftKings during his tenure at Capital One. He understands the fantasy sports business from both US and India perspective. He is active in promoting the industry through his original empirical research, Indian fantasy Sports Business Association (founding member) and Fantasy Sports Trade Association (FSTA). He did his B.Tech (University topper) from University of Calcutta and MBA from University of Georgia. Going forward, he plans to take the role of Chief Platform Officer (CPO)

• The founder is supported by a serial entrepreneur, active angel investor in eLearning, Web Portals, Security, Hospitality, Government initiatives and IT companies. He has helped launch numerous start-ups in Canada and India, took strategic management roles, helped secure over $50M in early and mid stage funding for many companies. He has successfully transacted M&A’s between Canadian and Indian firms. He has been dividing his time between North America , India and the Asia Pacific region for over 12 years and speaks multiple languages. Going forward, he plans to take the role of CEO to drive massive business growth aligned with the company’s strategic vision and strategy

Appendix

Khelo Apna Khel, enCash your Passion, the bootstrapped version

DraftIndia, Passion to Win

The earlier days..

These days..