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VARANIUM

NEXGEN FUND
2 FUND HIGHLIGHTS

FUND SIZE
INR 120 Cr OUR INVESTMENT PHILOSOPHY of ‘capital efficient’ Targeted IRR:
with Greenshoe of INR 80Cr investments, focusing on Startups validated by ~25-28%
Corporates, decreases the failure rate significantly, (not considering any
50+ bagger)
thereby generating superior returns overall

INVESTMENT / STARTUP
INR 2-3 Cr 17% of initial investments give 10x+
(With plans to participate
in subsequent rounds returns
for select Startups) 19% 19%

17%

14% 14%

FUND TERMS 8%

6%

Term: 6 + 1 + 1 years
Management fee: 2% 3%

Hurdle Rate: 8%
0% 0%
Carry: 20% (with catch-up)
0x 1x 2x 3x 5x 10x 20x 30x 50x 100x

Returns
3 FINTECH- CREATING UNICORNS WORLDWIDE

Unicorn Club by segment


GLOBALLY Lending | 24.1 % INDIA
Cybersecurity | 13.0%
| 11.1 % 7200 TECH
FINTECHS 50 InsureTech
STARTUPS
Neobank | 9.3 %
B2B Fintech | 7.4 % 1600
FINTECH
WealthTech | 7.4 %
UNICORNS 266 STARTUPS
BankingTech | 5.6 %
Payments | 5.6 %
| 16.8 %
Others
TOP FUNDED
TOP FUNDED FINTECHS Unicorn Club by Country $2.53 B
USA | 48.2 %
$560M $450M $397M China | 33.9 % $350 mi
UK | 8.9 %
India | 5.4 %
$161 mi
$500M $450M Germany | 1.8 %
Brazil | 1.8 %
4 GROWING WORLDWIDE INVESTMENTS IN FINTECH

$3,525 Europe 31% CAGR

$8,648 Asia 67% CAGR


$2,843
$2,009
$1,377

$5,028 $6,203

$6,842

$1,198
$1,114 $12,415 North America 20% CAGR

$9,125 $8,673
$5,923 $6,267

2014 2015 2016 2017 2018

FINTECH DEALS AND FUNDING SOAR TO NEW RECORDS

Global fintech investment tops $39B in 2018


Annual global fintech deals and financing, 2014 –2018 ($B)
Source: CB insights
Asia has the highest growth rate in FinTech investments
5 MARKET RIPE FOR EARLY STAGE FINTECH INVESTMENTS

8% 9% 12% 13% 16% Others


8% 7%
6% 7%
6% Late Stage
17% 19% 18%
18%
21% Mid Stage

67% 65% 64% 62%


57% Early Stage

2014 2015 2016 2017 2018

Early-stage fintech deal share falls for the 5th year


Annual deal share by stage to global VC-backed fintech companies, 2014 –2018
Source: CB insights
6 FINTECH - THE TAILWINDS IN INDIA

Innovative domestic payments


Jandhan-Aadhar-Mobile Unique Market Conditions
network

80%
Adults in 2017 with bank accounts, High volume price sensitive market; Immense
35% in 2011 scope for innovation and disruption

1.3 Bn
$14 Billion deposits
Second highest
Jandhan Accounts have a total
population in the world
deposit base of Rs. 95K Crs

264 Mn 7060 $ (PPP)


Rupay Cards issued Low annual per capita income

>90%
Annual expected ROI on FinTech investments
Indian population having
Aadhar number Europe 14%

Oceania 16%
145 Mn
462 Mn Africa 18%
# of UPI transactions/month compared
# of internet users in the world. Global 20%
to
2nd highest in the world Latin America 22%
300 Mn/month for cards!
North America 23%

750 Mn Asia 25%

# of smart phones by 2020 India 29%

0% 5% 10% 15% 20% 25% 30% 35%


7 SPONSORS

Varanium Capital Advisors

Leadership:
AUM:
About Us: Founder & CEO:
T S Anantakrishnan
(Ex- GSAM, Shumway, Prime, Religare. Varanium Asset Management -
Global Multi-Asset Boutique
Asset Manager- focused on
MBA- NYU Stern BE- IITR, CFA & FRM) Offshore AUM: USD 650 MM
Emerging Market Strategies, Principal:
India in particular Varanium Capital Advisors -
Sajeeve Thomas Domestic AUM: INR 500 Crs
(Ex- Citibank & Shinsei Bank.
PDGBA IIMA 1975)
8 INVESTMENT TEAM

Investment
Committee

Aparajit Bhandarkar T.S Anantakrishnan

• >15 years of experience in Investment Banking, Investor relations • >22 yrs of experience in Portfolio and Risk Management across
and startup investments global asset management firm such as Goldman Sachs and hedge
fund- Shumway Capital in the US.
• Ex- CEO Dice Fintech Ace- a fintech venture fund
• Ex-CEO of Religare Portfolio Managers
• Ex-President, Merchant Banking, YES BANK, Head of Strategy, Jio
Payments Bank • Ex-head of Portfolio Management business for Prime Securities.

• MBA- NYU Stern; CFA; CA • MBA-NYU Stern, BE –IIT(Roorkee), CFA & FRM

Research

Vikram Pandya
• Currently Director Fintech at SP Jain School of Global Management

• >11 years of experience in Banking, Technology and Fintech

• Ex- Strategic Advisor at Yes Bank, mentor of various fintech startups,


speaker at ICAI

• CA, CFA, CISA


9 ADVISORY BOARD

Jiten Gupta Pranav Pai

• Founder Citrus Pay and MD Payu India • Founding Partner and CIO of 3one4 Capital an Early Stage VC
Fund. Has made over 50 investments in start-ups including
• Build Citrus to over 300 people, raised over $25 million from YourStory, Licious, Faircent, DarwinBox, BetterPlace, Tonetag,
Sequoia, Econtext Japan, Acsent Capital Tripoto, i2e1, and Tracxn.

• Managed sale of Citrus to Naspers for USD 130 MM • Ex-Lead Product Manager at EdCast, an education technology
startup in the San Francisco Bay Area.
• Prior to Citrus was with ICICI BANK for 7 years
• Co-President of the Stanford Angels and Entrepreneurs network in
• Graduate from Sydenham College and Chartered Accountant India & Investment Committee Member of the Reliance Jio
Gennext Accelerator in Mumbai

• Master's in Electrical Engineering from Stanford University and


Bachelor's in Electronics and Communications Engineering from RV
College, Bangalore
10 INVESTMENT DECISIONS – PETT FRAMEWORK

01 | Product& Tech 01 03 03 | Team


Quality of execution of the idea - - Founders’ education

Differentiators/Moats - - Work experience

Competitive advantage - - Previous exits

- Network…
INVESTMENT
DECISION
02 | TAM 04 | Exit
Overall demand for the product/service - - Likelihood of next rounds’ fund raise

Revenue ceiling - 02 04 - Potential for acquisition

Possibility of growth in customer base - - Potential for IPO…

Reasonable Valuation
11 INVESTMENT PROCESS

• Via our Aimcrest ecosystem


• Other sources: F6S, Nasscom,
LinkedIn, Medici, AngelList,
LetsVenture, other seed stage Key support to Startups:
VCs, partner incubators and • Business Development
accelerators etc. • Specific VC connects
• Strategy & planning

Start Scouting Due Diligence Scale-up Support

01 02 03 04 05

Short Listing Negotiation


& Investment
With support from:
• Nominees from Sponsor/LPs
• BFSI Industry experts
• Tech: Microsoft, Amazon,
Google, IBM, Oracle, IIT-B
professors
• VC community stakeholders
12 THE SECRET SAUCE- RISK MITIGATION

Reason for startup failure Mitigant

No Market Need & Traction 42%


Corporate partners to validate market
need for the product before investment

Provide seed capital; connect


Varanium focuses Ran Out Of Cash 29% with VCs for next rounds of funding
on addressing the
customer and • Focus on right founding
capital challenges Not The Right Team 23%
teams for success.
for startups • Support in HR hiring for
team expansion

Get Outcompeted 19%


• Close strategic and
product monitoring.
• Board seat for inclusion
in decision making
Pricing / Cost Issue 18%
13 AIMCREST platform

There is a burning need for -


❑ Quality startups which can solve corporate use cases
❑ Deal sourcing for VCs and HNIs
❑ Reliable service providers to serve startup needs
14 Value Proposition

Corporates VC/HNIs Service Providers Startups


Second Title A Second Title B Second Title C Second Title D

• Access to relevant • Access to high quality • Access to a large • Access to investors


startups deals pool of potential • Access to corporates
• Personalised and • Deal syndication clients • Access to service
customised support • Access to ESOPs on providers
sale • Support during deals
• Support during deals
15 Ecosystem Stakeholders

VC/PE, HNI
Charge IR fee to
HNIs
Invested
Service providers
Charge BD fee to Partners
service providers

Startups
Pitched

Applied Verified

PoC‘s

Contract
Corporates Charge success
Charge success fee to Startups
fee to Startups
16 PRIOR TRACK RECORD OF FUND MANAGER

Sr No. Investee Company Initial Investment date Next Round Infusion (Rs. Crs) Multiple (X)

1 Moneytor Dec-17 1.23 1.89X

2 Trendlyne Jan-18 2.9 2.12X

3 Open Financial Technologies Pvt Ltd Jan-18 32.4 Exit @ 5.4X

4 Smart Coin Financial Pvt Ltd Mar-18 3.0 Indeterminate*

5 Cashcow May-18 4.5 3.2X**

6 Kratikal Sep-18 - No change

7 Pingal Oct-18 - No change

8 Aagey Nov-18 - No change

Total

Portfolio IRR
167%

*Additional Capital raised at 0% discount to the next round. The company has a 4x traction since the time of investment and has got RBI approval for NBFC licence

** Capital raised at 3X+ valuation report. The appreciation was considered wrt valuation report since our deal was at discount to next round
17

Case Studies
18 CASE STUDY 1 - OPEN

INVESTMENT & VALUATIONS OTHER INVESTORS


✓ INR 1Cr@8.33 Cr Post money – Jan 18 Jitendra Gupta, Amrish Rau (PayU), Unicorn India
✓ INR 1.25 Cr@25.9 Cr Post money- May 18 Ventures, Beenext
✓ INR 32.5 Cr @ 132.5 Cr Post-money – Jan 19
✓ Current DFA stake:10.24%

Digital banking service


that combines banking,
book-keeping & payments TEAM TRACTION
in one simple interface All founders Serial Entrepreneurs
Active Customer Base
➢ Anish Achuthan - PayU (VP)
➢ Mabel Chacko - Head, Marketing, PayU
Investment reason
8,127
7,854

➢ Ajeesh Achuthan – Eng. lead, PayU


6,253
➢ Deena Jacob – TaxiForSure, Zansaar (CFO)
Product

Team MILESTONES
TAM ➢ Fastest
growing in its category. Adding 12000
customers/month 1,015
1,418
982

➢ Exclusive partner of ICICI


544
395
Exit
246

➢ Working with Amex and Visa in USA to create co-


Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18

branded products
Valuation ➢ Exit offer in place for DFA
19 CASE STUDY 2 - SMARTCOIN

INVESTMENT & VALUATIONS OTHER INVESTORS


✓ INR 1 Cr@ INR 53 Cr Post Money, March 2018 01VC, Accion, Unicorn India Ventures
SMARTCOIN
✓ INR 3 Cr@ 0% discount to next round

Mobile app based lending


platform powered by
credit analytics, risk
assessment & profiling TEAM TRACTION
➢ Rohit Garg (CEO) - IIT Kanpur (Comp. Sc.); IIM A; Disbursal Amount (Rs.)
VP, Nomura 140,000,000

➢ Amit Chandel (CTO) - IIT B (Comp. Sc); Director,


120,000,000

100,000,000
Eng., Kiwi
Investment reason ➢ Vinay Singh (CPO) - IIT B (Comp. Sc.); Director,
80,000,000

60,000,000

Eng., Kiwi 40,000,000

➢ Jayant Upadhyay (COO) - IIT D (Comp. Sc.); 20,000,000


Product Technical Lead, Kiwi 0
Jan 2018 Feb Mar Apr May Jun 2018 Jul 2018 Aug Sep Oct 2018 Nov Dec Jan 2019
2018 2018 2018 2018 2018 2018 2018 2018

Team MILESTONES Number of Loans


45,000 40,742

TAM ➢ 15x growth in disbursals in last 12 months 40,000


35,000
➢ 100000+ customers 29,259 30,360
28,243
30,000
23,931

Exit
25,000
➢ 90% + repeat rate for customers 20,000 16,216
18,250 19,027 18,615 18,063

15,000 10,647
9,115 9,226
10,000

Valuation 5,000
0
01/18 02/18 03/18 04/18 05/18 06/18 07/18 08/18 09/18 10/18 11/18 12/18 01/19
20 CASE STUDY 3 - TRENDLYNE

INVESTMENT & VALUATIONS OTHER INVESTORS


✓ INR 65 L @INR 8.14 Cr Post money, Jan 2018 Bhagchandka group (brokerage firm), IIFL
✓ Next round by IIFL INR 3 Cr@ 20 Cr post –money
valuation
A comprehensive stock ✓ Current stake:6.8%
analyses platform for retail
investors, analysts &
brokerages TEAM TRACTION
➢ Amber Pabreja (CEO) - 14+ years of experience
in IT; Tejas Networks; Veritas; Wipro-Cisco; NIT
Revenue (in lacs)
Calicut, IIT Kanpur 14.00

Investment reason ➢ Devi


Yesodharan (CMO) - 12+ years of
12.00

experience in marketing & analytics; HP; 10.00

Economic Times; Aadhaar (UIDAI); Infosys; IIM 8.00

Product Calcutta MBA 6.00

Team MILESTONES
4.00

2.00

TAM
-
➢ Featured in IAMAI and INC42 list of top 30 04/18 05/18 06/18 07/18 08/18 09/18 10/18 11/18 12/18

emerging Startups
Exit
➢ Among top ten winners (out of 1100 startups) of

Valuation the next big Idea contest by Govt of Canada


➢ Selected for Oracle accelerator
21 CASE STUDY 4 - MONEYTOR

INVESTMENT & VALUATIONS OTHER INVESTORS


✓ INR 96 Lakhs @ INR 10 Cr Post money, Dec’17 Satyen Kothari, 500 Startups, Zephyr Trading,
MONEYTOR ✓ INR 11 lakhs: INR 21.2 Cr Post Money, June’18 Stanford Angels

✓ Current stake: 9.6 %


Automating stressed
receivables management
using technology
TEAM TRACTION
➢ Anubhav Singh - IIT-B; Carnegie Mellon; 15 years Total Portfolio (in crores)
of experience in financial sector; VP, Debt 0.03

Servicing, YES Bank 0.025

➢ Anupam Sarawagi – LSE Economics, IESE MBA;


Investment reason ex-Aviva, Startup experience
0.02

0.015

0.01

Product 0.005

0
April May June July August September October November December

Team MILESTONES Total Collection (in lacs)


80.00

➢ Featured in IAMAI and INC42 list of top 30


70.00
TAM 60.00
emerging Startups 50.00

➢ Selected for Vizag FinTech accelerator, Oracle 40.00

Exit accelerator and Zone-startups accelerator 30.00

20.00

10.00

Valuation 0.00
April May June July August September October November December
22 CASE STUDY 5 - CASHCOW

INVESTMENT & VALUATIONS OTHER INVESTORS


✓ INR 1.25 Cr (Discount to next round), May 2018 Astarc venture
✓ Next Round of Rs. 4.5 Crs(Discount to next
round)
Distribution channel for ✓ Valuation in report up from INR 12.5 Cr to INR 40
financial products through Cr
a network of trained
micro-entrepreneurs TEAM TRACTION
Total Gross Payin (in lacs)
➢ Manish Aggarwal - ex-Airtel, Jio, Rubique (CBO) 250

➢ Gaurav Goyal - B.Tech, M.Tech, IIT-D; Rubique


(CPO)
Investment reason ➢ Mustafa - Successful Entrepreneur; Outdoor 200

Media Expert
➢ Sarafraz Nawaz – Ex-banker; Loans Distribution
Product Expert 150

Team MILESTONES 100

TAM ➢ Featured amongst the top 50 Startups in


Fintegrate, India 2018
50

➢ First prize in IIT Delhi investor-startup meet 2018


Exit
0
➢ Achieved operational break-even Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18

Valuation
23 CASE STUDY 6 - PINGAL

INVESTMENT & VALUATIONS OTHER INVESTORS


✓ INR 1.5 Cr in Oct 2018 Potential strategic investment from DB
✓ At discount to next round

Platform integrating all aspects of


analytics – data integration
fabric, modelling interface,
search interface and
TEAM TRACTION
computation engine.
➢ Ajay Rastogi, MBA, FIC & eFX Sales, MD Deutsche
. Bank, India & Singapore ✓ Number of clients: 2
➢ Shivendra Meena, B.Tech (CSE, IIT-B), Tech ✓ Monthly revenue – 7.8 lakhs + GST
platform, Director-DB Centre
Investment reason ➢ Digvijay Singh, M.Tech (CSE, IIT-B) Tech Platform, ✓ Average ticket size: 5 lakhs
DB Centre ✓ Clients in pipeline: 5
Product

Team MILESTONES
TAM ➢ Among top ten winners (out of 1100 startups) of
the next big Idea contest by Govt of Canada
➢ Only company from India to be selected for ‘
Exit The Landing Pad’ event in Germany by Tech
Quartier incubation hub and KPMG
Valuation ➢ Selected for Stone and Chalk incubator,
24 CASE STUDY 7 - KRATIKAL

INVESTMENT & VALUATIONS OTHER INVESTORS


✓ INR 1 Cr @ INR 25 Cr. Pre-money Bhagchandka group, Artha ventures

Securing people,
processes and
technologies from variety
of cyber attacks. TEAM TRACTION
➢ Pavan(CEO)- Ex-CTO Dawailelo (acquired by
✓ 12 large enterprise clients
1MG), Ex-Head Security ImpactQA
➢ Paratosh (CTO)- Ex-CTO RankOne Consulting ✓ 20 PoCs
Investment reason ➢ Dip Jung (COO)- Ex-Product Manager Paytm

Product

Team MILESTONES
TAM ➢ Selected in Oracle Cloud Accelerator program
➢ Selected amongst top 6 companies in
Exit NASSCOM’s product showcase contest

Valuation
25 CASE STUDY 8 - AAGEY

INVESTMENT & VALUATIONS OTHER INVESTORS


INR 1 Cr @ INR 15 Cr. Post-money, Dec 2018 Satyen Kothari, 500 Startups, Zephyr Trading,
Stanford Angels

Digital marketplace for


MSMEs to avail all types of
financial products
TEAM TRACTION
➢ Akaash Shankar - Mechanical engineer, MBA &
MDP from IIM-L. 15+ years’ experience in ✓ >500 Cr disbursed to > 1,400 SMEs
banking and telecom. VP at Kotak for 13 years. ✓ >50 banking and NBFC partners
➢ Ramkumar T - BSc CS graduate, 20+ years
Investment reason experience working with Fortune 500 companies.
➢ Deepak Mishra – CA, 12 years of experience in
Banking & Finance. 11 years with Kotak
Product Mahindra Bank.

Team MILESTONES
TAM ➢ Runners up in Elevate100 by Karnataka
government
Exit ➢ Selected in top 50 startups for Fintegrate event
by Zone startups
Valuation ➢ Selected by Znation labs accelerator
➢ Selected by KMBL as best channel for south India

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