2 Deutsche Bank

2014

$647.5

$382.7

$360.9

$218.2

$212.7

$200.7

$172.3

$158.9

$142.1

$136.0

$2,632

(market cap in US$bn)

1995

$51.6

$50.1

$46.6

$42.7

$33.7

$20.3

$18.8

$18.4

$18.2

$16.6

Total $317

2005

$280.1

$147.7

$129.4

$121.6

$108.4

$81.2

$76.0

$70.7

$62.8

$60.0

$1,138

Note: Market cap as of December 31,1995, December 31, 2005, and December 31, 2014

New companies that made it to the top 10

Source: FactSet, Thomson Reuters

The tech landscape changes extremely fast…

3.6x 2.3x

3 Deutsche Bank

(market cap in US$bn)

2010

$295.5

$241.9

$190.8

$180.2

$157.3

$115.9

$114.4

$92.8

$79.8

$63.8

Total $1,532

2014

$647.5

$382.7

$360.9

$218.2

$212.7

$200.7

$172.3

$158.9

$142.1

$136.0

$2,632

Note: Market cap as of December 31,1995, December 31, 2005, and December 31, 2014

Internet companies

Source: FactSet, Thomson Reuters

…and Internet companies are now dominating the landscape

1.7x

4 Deutsche Bank

Tech IPO issuance since 1995

Note: Data as of April 2015

Source: Bloomberg, Dealogic

17 28 25

36

158

217

21 18 17

56 51

60

79

10

44

130

79

59

47

116

$0

$10

$20

$30

$40

$50

$60

$70

0

50

100

150

200

250

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

To

tal IP

O p

roc

ee

ds

(US

$b

n)

# o

f IP

Os

# of IPOs Total IPO proceeds

IPOs used to be preferred route to raise growth capital…

5 Deutsche Bank

$2.8

$9.2

$1.6

$8.1

2012 2014

IPOs Private capital raises

$34.2

$18.8

Top 10 IPOs vs top 10 private placements (US$bn)

…now private financings are getting equally important in tech capital formation

Source: Bloomberg, Dealogic

$25 bn

$16 bn

6 Deutsche Bank

Corporate Banking & Securities

Year of

founding

# of years till

now

Current estimated

valuation (in $m)

2012 3 $8,800

2011 4 $15,000

2010 5 $46,000

2010 5 $7,000

2009 6 $41,200

2008 7 $11,000

2008 7 $10,000

2007 8 $11,000

2007 8 $10,000

2004 11 $15,000

Median 7 $11,000

Year of

founding IPO year

# of years to

go public

Valuation at

IPO (in $m)

2006 2013 7 $12,084

2004 2012 8 $71,286

1999 2004 5 $790

1999 2005 6 $799

1999 2014 15 $168,250

1998 1999 1 $2,274

1998 2004 6 $21,346

1995 1998 3 $1,900

1994 1996 2 $570

1994 1997 3 $438

Median 6 $2,087

Note: Current valuation of private companies as of April 2015

Source: Investopedia, Wall Street Journal, company filings, Crunchbase

Companies are staying private longer with higher valuations…

Top 10 public Internet companies by valuation Top 10 private Internet companies by valuation

7 Deutsche Bank

…leading to the rise of “Unicorns”, “Decacorns”… and soon “Pentacorns”

Unicorn

(US$1.0 – 9.9bn valuation)

Decacorn

(US$10.0 – 49.9bn valuation)

US

Europe

Asia ex-China

China

Source: Wall Street Journal

Indian companies

8 Deutsche Bank

January 2014 April 2015

US

29 companies with a valuation > $1bn 57 companies with a valuation > $1bn

Europe

2 companies with a valuation > $1bn 7 companies with a valuation > $1bn

Asia ex-China

1 company with a valuation > $1bn 7 companies with a valuation > $1bn

China

8 companies with a valuation > $1bn 13 companies with a valuation > $1bn

The Unicorns & Decacorns are growing at a scorching pace

$72bn $214bn

$9bn $13bn

$2bn $21bn

$34bn $131bn

2.9x

1.4x

10.5x

3.9x

Source: Wall Street Journal

9 Deutsche Bank

VC funding in Indian start-ups has grown exponentially (US$bn) Select recent private financings of Indian tech companies

$0.9

$1.5 $1.6

$1.8

$3.8

$0.0

$0.5

$1.0

$1.5

$2.0

$2.5

$3.0

$3.5

$4.0

2010 2011 2012 2013 2014

Source: Wall Street Journal, press releases

Date Company name Amount (US$m) Value (US$m)

Feb-15 80 n/a

Jan-15 575 1,500

Jan-15 100 450

Dec-14 700 11,000

Nov-14 60 600

Nov-14 100 250

Oct-14 627 2,000

Oct-14 210 1,000

Sep-14 60 300

Jul-14 1000 7,000

May-14 210 1,600

Note: Includes only private placements above US$50m

Availability of private financing has also been the key catalyst for growth of Indian Internet

10 Deutsche Bank

Rapid growth in GDP (US$bn) Rapid growth in Internet users (m)

Rapid growth in mobile users (m) Rapid growth in eCommerce (US$bn)

Source: DB research, BMI research

$757

$2,108

$3,122

2005 2014 2018E

27

250

500

2005 2014 2018E

76

944

1,087

2005 2014 2018E

$4

$22

$86

2009 2014 2018E

India at an “inflection point”

11 Deutsche Bank

Corporate Banking & Securities

$22

$480

India China

$147

$1,060

India China

1,267

1,394

1,312

1,416

India China

2014 2017

Population (m) GDP per capita growth

Source: DB research, BMI research

4.1%

7.3%

5.6%

6.7%

India China

2014 2017

Internet penetration Online shoppers as % of Internet users eCommerce (US$bn)

7%

43%

India China

2013-16

CAGR 75% 37%

17%

45%

India China

India will be the next China!

In 2013

Online Advertising (US$bn)

In 2013 In 2014 In 2014

12 Deutsche Bank

Number of years it took to enter the unicorn club

Who will join the club?

2004

2008

2010

2007

2007

2007

2011

Year founded

9

7

5

5

5

4

3

“Getting there faster”

Rise of Indian “Unicorns” and “Decacorns” with many more to come!

Source: DB research

13 Deutsche Bank

1 country

in 2008

20

now

1 category

in 2007

70+

now

Create innovative products

Key takeaways for India Internet entrepreneurs

Source: DB research

Acquire & retain new customers

Expand into new geographies, verticals

Acquire strategically

India’s internet market to hit

$137bn in 2020

Look at the rest of the

world but CREATE

for local markets

Exact replicas rarely

work

There is a lot of talent

and a lot of capital

available

Enormous opportunity

to create value

Growing the

customer base is key

to scaling up

Check the customer

acquisition costs

Adjacent verticals, markets

provide significant

opportunities for expansion

Expand, but don’t lose

focus of your USP

Acquisitions can

enhance market reach

and boost growth

Strict due diligence

required