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East West India Media Industry Update

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Investment in the Indian Media Industry continues strongly through

2013

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The ranks of India’s middle classes have grown to some 330 million people

Annual income of between USD 4,000 and USD 21,000

India’s middle classes own over 40% of India’s mobile phones

Within a decade they will be the dominant section of the Indian population

Catalyst for the media and entertainment sector’s rapid digitisation enabling the industry to connect more easily with consumers

India’s middle class is driving themedia economy

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During 2013 India’s media sector grew by approximately 7-8%

The forecasts for 2014 are astonishingly bullish Television revenue is expected to grow at 15-18% Print by 8-10% Digital is expected to race ahead by 30%

India media economy highlights

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Indian media industry revenues are expected to reach nearly USD 40 billion by 2016

CAGR of about 17% from 2012 to 2016 ecommerce has witnessed a 150% growth rate, increasing

from USD 3.8 billion in 2009 to USD 9.5 billion in 2012*

*Joint report by KPMG and the Indian Association for Mobile and Internet

Media headline stats

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Internet penetration in India is only 7%Behind the other BRIC countries at between

30-40%18-26 year olds are more tech savvy and spend

more time on the internet than any other media

Room for huge growth

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Bertelsmann’s India investment fund leading a USD 12 million financing in IndiaProperty.com

Flipkart, India’s answer to Amazon, raised USD 360 million in 2013 to take on eBay-backed Snapdeal

Cashkaro, a coupons and cash-back site, raised USD 750k from a London-based angel investor.

2013 media deals of note

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Myntra, India’s largest standalone fashion e-tailer has raised some USD 75 million with talk of investment from India’s fourth richest man, Wipro chief Azim Premji.

Zomato, the New Delhi-headquartered restaurant discovery site, received investment of $37m from Sequoia Capital

More media investment in 2013

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IPG’s purchase of Interactive Avenues, India’s largest independent digital agency

Japan’s Dentsu India group took an 80% stake in Webchutney

2013: M&A activity strong in digitaladvertising

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Publicis, the French communications giant, has also continued its spending spree in India with the acquisitions of Beehive Communications and Convonix

2013: More digital investment

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$25m PE investment, led by Warburg Pincus, in Quikr

Providence Equity purchases 50% stake in Star CJ Network

GSO Capitals acquires Velti Plc

2013: More digital investment

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East West anticipates this trend to continue into 2014 with emphasis on capital investment as opposed to secondary exits

Focus will be on ecommerce and the mobile space

However, also growing activity in the B2B sector

2013: Trends

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