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
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
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
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
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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
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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
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Numbers and Scale up Plan
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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