eCommerce Simplified

Safe Harbor
This presentation and the accompanying slides (the Presentation), which has been prepared by iStreet Network
Limited (the Company), solely for information purposes and do not constitute any offer, recommendation or
invitation to purchase or subscribe for any securities, and shall not form the basis or be relied on in connection with
any contract or binding commitment whatsoever. No offering of securities of the Company will be made except by
means of a statutory offering document containing detailed information about the Company.
Our actual results may differ materially from those included in this presentation for a variety of reasons, including,
but not limited to - changes in political, business, and economic conditions; foreign exchange rate fluctuations; the
impact and integration of recent and future acquisitions; our need to successfully react to the increasing
importance of mobile payments and mobile commerce and the social aspect of commerce; an increasingly
competitive environment for our businesses; the complexity of managing an increasingly large and growing
enterprise, with a broad range of businesses; our need to manage regulatory, tax and litigation risks (including
risks); and our need to timely upgrade and develop our systems, infrastructure, and customer service capabilities at
reasonable cost while maintaining site stability and performance and adding new products and features.
This presentation also contains product demonstrations (or reference to such new products), some of which are
conceptual and may not be developed or launched in the same form, with all of the same features or at all.
The Company assumes no obligation to update any forward-looking information contained in this Presentation.
Any forward-looking statements and projections made by third parties included in this Presentation are not
adopted by the Company and the Company is not responsible for such third party statements and projections..

eCommerce Simplified

Our 1st Step

eCommerce Simplified

Business gaining Momentum

No. of Transactions

Sale value (Rs. In Lac)

18,938

43

14,149

16
5,023
8
4
226
Q1FY15

Q2FY15

Q3FY15

Q4FY15

Q3FY15

Q4FY15

The unique, out of the box concept of

iStreet Bazaar is generating tremendous
interest and curiosity amongst customers
thereby enticing small entrepreneurs to
latch on to the model of iStreet Bazaar
leading to growth in Volumes

535

130
63
Q2FY15

Q2FY15

778

Network Partners

Q1FY15

Q1FY15

Q3FY15

eCommerce Simplified

Q4FY15

iStreet Bazaar Performance*

No. of Transactions 38,336
GMV Rs. 70.59 lacs

No. of Transactions 19,398

GMV Rs. 27.41 lacs

No. of Transactions 5,249

GMV Rs. 11.81 lacs
No. of Transactions - 226
GMV Rs. 3.83 lacs

1st Store
Launched

13 Stores

Jan14

Feb14

130 Stores

Jun14

184 Stores

Aug 14

193 Stores

Sep14

227 Stores

Oct 14

727 Stores

1,506 Stores

Dec 14

Mar 15

Store Target - 3,500 to 4,000 Stores by March16

*All performance numbers are cumulative in nature
GMV stands for Gross Merchandise Value

eCommerce Simplified

Our Journey

eCommerce Simplified

Group Evolution
YEAR 2001-08

YEAR 1995

API & Intermediate business runs

into rough weather and company
turns sick; Continues with Job Work

YEAR 2012
Comes Out of Financial Sickness
& sets up Digital & eCommerce
division; Fully exited API &
Intermediate Business

Sets up GMP standard API &

Intermediate manufacturing
plant in Gujarat

YEAR 1986-88
Incorporated in 1986 and
started trading in API &
intermediates in 1988

YEAR 2008-09
YEAR 1999

YEAR 1992-94
Converted into Public Ltd
company in 1992 and raised
funds through IPO in 1994

eCommerce Simplified

Promoted Indias 1st Online

Chemical Trading Portal
PwC as a strategic partner

Clears all debts & outstanding

and the company becomes
debt-free

Digital & eCommerce

YEAR 2011
Pioneered flash sales to ship
4,000-6,000 items a day on eBay

YEAR 2008

Managed Indias largest online

auction for IPL 2011 involving
BCCI & Volkswagen

Evolved the eBay "Trading

Assistant" model. Delivered
eCommerce to 100s of brands
under this model till date

YEAR 2014
Launched iStreet Bazaar
Indias 1st internet Retail Store

YEAR 2012
YEAR 2007
Set up online auction
stores under the "cash
in your attic" program

Set up stores through network partners in

Gujarat, Maharashtra & Rajasthan.
No of stores - 1,001 as on Jan 31, 2015

Created online jewelry configurator and

sold loose diamonds online with IDEX
India and eBay India
Set up "India Street" - Grocery
products shipped from India to
across the world

eCommerce Simplified

YEAR
2013

Selected to present at
the Web Summit in
Dublin, Ireland

Company Name changed to iStreet

Network Limited

Selected as the
"Startup of the Year
2014" by Silicon India

Retail
Landscape

eCommerce Simplified

Evolution of Retail

Developed Countries

Retail

eCommerce Simplified

Modern
Retail

Digital
Retail

Retail in India

Indian Retail

One of the major

pillars
13~15% of GDP
eCommerce Simplified

Retail in India

Indian Retail

~US$500bn
(Rs. 30 lacs crores)

eCommerce Simplified

Retail in India
Modern Retail
8%

eTailing
0.4%

Mom & Pops

91.6%

eCommerce Simplified

85.0%

+82.7%
950

520

2013

2018E

Organized Retail Penetration

Retail Market Size (USD Bn)

India Retail an overview

40.0%
30.0%
20.0%

8.0%
India

China

Indonesia Thailand

USA

Revenue Share in Retail

Category

Organized Retail
8.0%

6.0%
3.0%
11.0% 4.0%
3.0%
5.0%
8.0%

92.0%
Unorganized Retail

Source Industry reports

eCommerce Simplified

60.0%

Food & Grocery - 60%

Apparel 8%,
Mobile & Technology 6%
Food Service 5%
Con. Electronics 4%
Pharmacy 3%
Jewelery 3%
Others 11%

Evolution of Retail - India

India
Indian Retail Segment - Mom & Pops Stores, which are traditional family owned
store, 96% of which is less than 500 sq. Feet
Modern Retail though expected to be replace mom & pop stores, struggles to
expand its share
eTailing started growing since 2010, currently contributing negligible, though
growing at a very fast pace

eCommerce Simplified

Moms and Pop Stores the King without Crown

Convenient
Neighbourhood
Store

14 million
stores

Driven by trust
& Quick
response
Low operational
cost

14 million Mom and Pop Stores in India are consumers most trusted point of buying
But ... have limited product offering

eCommerce Simplified

Common Man of India

Common Man
buys from
Mom & Pop store

Common Man popular image created by Late Shri R.K. Laxman. The same is used here just as a symbol and is not our property.

eCommerce Simplified

Who is the Common Man of India

Common Man may be any person living in Urban, Tier 2,

Tier 3 cities including Villages & towns
Common Man has aspirations and hopes
Common Man is a follower rather than creator or believer

Is 95% of Population of India who have yet not been

touched by eCommerce in its present & available avatar
Is largely dependent on Mom & Pop stores for its needs

Common Man popular image created by Late Shri R.K. Laxman. The same is used here just as a symbol and is not our property.

eCommerce Simplified

Adoption of new formats of Retail

Common Man far away from

Modern Retail
Digital Retail

Common Man popular image created by Late Shri R.K. Laxman. The same is used here just as a symbol and is not our property.

eCommerce Simplified

95% of Population in India

i.e. Common Man

Why he has not moved beyond

Mom & Pop
Very low per capita Modern Retail space
LFR Perceived as Stores for select FEWs

Has Limited access to plastic monies

Is E-illiterate

Mom & Pop

Consumer

Does not have internet connectivity

Prefers human interaction while transacting
Looks for trust factor while transacting on Internet

Confluence of Digital Retail & Indian psyche is a mismatch; it needs an

innovative and differentiated platform

eCommerce Simplified

A Revolutionary
concept

eCommerce Simplified

iStreet Bazaar is an Internet Retail Store

in a neighborhood where a common man can
buy products, ONLINE
(with assistance)
eCommerce Simplified

Mom & Pop

convenient
Stores

Digital Retail
driven by
Technology

Modern
Retail large
offering /
choice

Changing the Retail landscape of India with a unique India

centric approach

eCommerce Simplified

iStreet Bazaar a Physical Digital

Amalgamation

eCommerce Simplified

iStreet Bazaar - Unique proposition

Facilitating
Enhanced Shopping
Experience
Neighborhood
Store

Competitive
Pricing
Single stop for
multiple type
of products

Hassle free &

highly
convenient

Assisted
eCommerce

Yo ur T ext Go es her e.
Down load th is aw esome
d i a g ra m. B r i n g y o u r
p r e s e nta t i o n t o l i f e.

Trust with
the seller

Get
Quote

Access to Global and Local

Brands

Harmonious convergence of Physical & Digital shopping

eCommerce Simplified

Safe, Secure &

Authentic

Win-Win for all stakeholders

Access to Global & Local Brands
at attractive prices

Business with high return on Investment

Network Partners
Brands

Customers

Opportunity to cater to 95% of the

untapped population of India

Low Investment in setting up store

Branding & Advertising to be
undertaken by iStreet Bazaar
No Inventory Management &
Supply Chain Management

Creation of Brand equity via deeper

Penetration in Indian market

Quality Products at competitive

Pricing

Development of Loyal Customer Base

Wide variety and Choice

High level of trust and
familiarity in transactions

Low Risk & Quick to start

The model of iStreet Bazaar is a win-win proposition for all stakeholders

eCommerce Simplified

Physical-Digital Convergence

Few Examples ..

eCommerce Simplified

India examples
IRCTC Assisted eCommerce
www.irctc.co.in is a Government website used
for booking tickets for Indian Railways

~24% of overall gross value of tickets purchased is

via agents, assisted eCommerce

Portal charges a fee on every ticket booked

through the portal

Provided immense time saving for passengers due to

avoidance of long ticketing queues

Portal has tied up with various agencies such as

Yatra and Make my Trip

Agency model it got 140,000 outlets and agents

thus creating deeper inroads in to the Indian market

Recently portal added flight tickets, hotel

bookings, car rentals and tourist packages
through its site

IRCTC outlet in both Rural and Urban India brings

~40% volumes with more than 3.0mn transactions
per month

In FY14 IRCTC sold tickets amounting to gross

value of Rs. 15,400 cr

Agency model created to combat internet illiteracy

in far flung areas as well as trust issues with users

www.irctc.co.in is a classic case of assisted eCommerce being used to increasingly

penetrate deep in the Indian market thereby increasing ticketing revenue and achieve
faster growth for the gigantic Indian Railways

eCommerce Simplified

Global examples
Commonwealth Bank of Australia CBA)

Launched a program to revamp branch network to improve convenience and service levels
Project produced an impressive succession of DIGICAL (Digital + Physical) innovations
Project Finest Online modernized CBAs Internet Banking Service and combined it with in person channels
to eliminate all-too-frequent problems such as inability to link personal accounts to commercial accounts
Fusion based strategy propelled CBA to the highest customer-satisfaction ranking for retail banks in 2013
CBAs share price rose 80% from 2006-2014 compared to 9% for S&P/ASX 200 index
Competitors taking far longer to emulate the success story of Digical adopted by CBA

Menswear Digital retailer Bonobos Counts it offline offline experiment a success. Co-founder and Chief
Executive Andy Dunn told the New York Times, We said we would never be offline, and then, wait a
second we hit a big turning point. We realized offline really works.

Warby Parker stormed onto the scene in 2010 by selling affordable eyewear exclusively online. After
building a flourishing e-commerce business, co-founders David Gilboa and Neil Blumenthal decided to
break into bricks-and-mortar in 2013. With eight storefronts across the country, customer service,
interaction and community have helped the brand thrive. As of November 2014, Warby Parkers bricks-andmortar stores are now collectively turning a profit, selling an average of $3,000 a square foot annually.

Source Harvard Business Review and Magazine Articles

eCommerce Simplified

Project so far

eCommerce Simplified

Common Man of India

Rathodi Village, Malad (W), Mumbai

Conducted a pilot program in Rathodi Village, Malad (W) in

June, 2012
Rathodi Village in Malad (W) is about 40kms from Mumbai
Main and 2kms away from Malad which is a hub for BPO, KPO
and large IT companies.

Target to test the market and gauge common man feedback

on this project
Put up banners of the offer to create a buzz about the wrist
watches on sale sale online
On the day, sold 40 wrist watches online in 5 hours through
local neighborhood store to the people of Rathodi. All sold
online. All monies collected in advance and watches delivered
after 3 days

eCommerce was simplified for Rathodi villagers

who were very near to eCommerce & Tech hub in
Malad, yet so far from it.

eCommerce Simplified

Network Coverage

Rajasthan

Gujarat

474 Stores

555 Stores
Chattisgarh & MP

Maharashtra (Western)

94 Stores

383 Stores

1,506 (as of 31st March, 2015) iStreet Bazaar Stores currently available to
~150mn population

eCommerce Simplified

iStreet Bazaar Product Portfolio

Mobiles
Computers
Existing Category

Accessories

Home
Appliances
Focus on Men's &

Pipeline

Apparels

Women wear
categories

Fashion &
Lifestyle

Include products such as

Wallets, Bags, Sunglasses,

Wrist Watches

Thousands of products under 11 categories & 55 sub categories & expanding

eCommerce Simplified

International Recognition in Dublin,

Ireland

Received overwhelming response at the Web Summit 2014 held in Dublin, Ireland

eCommerce Simplified

Team

eCommerce Simplified

Promoter Group
Pradeep Malu : Founder and Managing Director
Chartered Accountant by qualification
An eCommerce professional since late 90s and has set new rules for
business growth using eCommerce
Conceptualized and executed large number of eCommerce projects in
B2C, B2B and C2C space

Lakshya Malu : Co-Founder

Mechanical Engineer from Boston University, USA
Worked with Memorial Sloan-Kettering Cancer Research (NYC) and
Cyber Materials LLC.
Handled eCommerce projects of TML, ITC, Videocon, SOTC and others
Conceptualized iStreet Bazaar and did pilots / proof of concept to see
how eCommerce can be simplified for common man of India

eCommerce Simplified

Management Team
Rocky Braganza
AVP - Business

Over 19 years of work experience in Electronic Category across Online & Organized Retail
MBA in e-Management Marketing he has worked with all stakeholders in Retail segments

Bhanwar Singh
Sales & Operations

Has over 9 years of work experience in Retail & eCommerce industry

Responsible for expanding Network, Business Development, Sales & Operations

Navin Rane
Human Resources

Has over a decade of expertise managing core HR functions

Responsible for building and developing a pool of talented Human Resources

Nagalaxmi Charipalli
Branding

Holds a Masters of Science & Masters of Marketing Management from JBIMS, Mumbai
Responsible for marketing & branding activities

Ruchi Seksaria
Company Secretary

Has over 8 years of experience in areas as Corporate affairs, Legal and Governance
Responsible for adopting good governance practices at iStreet

eCommerce Simplified

Management Team
Ratan Jain
Internal Audit
Professional

Qualified Chartered Accountant with over 12 years of experience

Oversees and builds System Audits, Internal Audits, Management Audit besides setting up
processes and documents for Finance Department

Shriram Shrikrishna
Manager Category
Development

Over 12 years of experience in Retail & Marketing experience with leading retailers
Responsible for sourcing New Vendors, Vendor Development & Product Portfolio

Kapil Dubey
Manager Category
Development

Over 8 years of experience in Retail Management, SCM & Business Development

Responsible for Category Development from conception to maturity stage

eCommerce Simplified

Financials

eCommerce Simplified

Profit & Loss

Particulars (Rs. Lacs)
Total Revenue

Mar-15

Mar-14

Mar-13

Mar-12

94.9

74.1

51.7

19.7

Pharmaceuticals

---

13.9

20.6

19.7

Digital & eCommerce

94.9

60.2

31.1

----

398.5

55.7

24.0

11.6

Raw Material Expenses

67.7

37.9

10.7

Employee Benefit Expenses

72.9

7.1

6.8

1.5

Other Expenses

257.9

10.7

6.5

10.1

-303.6

18.4

27.7

8.2

14.3

8.4

11.2

10.2

Exceptional Items

260.1

16.5

1.8

4.8

Profit before Tax

-57.3

-6.4

14.8

-6.9

-57.3

-6.4

14.8

-6.9

Total Expenses

EBITDA

Depreciation

Tax

Profit after Tax

eCommerce Simplified

Pharmaceutical & Int.

business thru Job Work
Digital & eCommerce
business Revenue
Up to FY14 - 3rd party
Platform sales ;
FY 15 iStreet Bazaar
Project Revenue started
building

Sale of underperforming
assets of Pharmaceutical
& Intermediate business
in FY15

Balance Sheet
Particulars (Rs. Lacs)

Mar-15

Mar-14

Mar-13

Mar-12

491.8
801.0
-363.1
53.9

466.4
795.0
-328.6
-

472.8
795.0
-322.2
-

98.0
435.0
-337.0
-

Current Liabilities
Trade Payables
Other Current Liabilities

90.0
14.4
75.6

49.8
1.4
48.4

30.4
0.2
30.2

35.0
0.0
35.0

Total
Non Current Assets
Fixed Assets
Non Current Investments
Long Term Loans & Advances

581.8
83.0
53.8
0.7
28.5

516.2
122.7
119.5
1.2
2.0

503.2
93.7
90.5
1.2
2.0

133.0
116.0
101.6
1.2
13.2

Current Assets
Current Investments
Inventories
Trade Receivables
Cash & Bank Balances
Short Term Loans & Advances
Other Current Assets

498.8
100.9
14.9
1.9
19.8
165.4
196.0

393.5

409.5

17.0

0.0
0.2
2.5
153.5
237.4

0.0
0.2
1.2
398.1
10.0

0.0
0.1
8.5
0.5
7.9

Total

581.8

516.2

503.2

133.0

Shareholders Funds
Share Capital
Reserve & Surplus
Money Received against warrants

eCommerce Simplified

Future Outlook
FY16E
Project Launched
Population covered

Geographical coverage (may change

depending upon various parameters)

Stores
No. of Fulfillment Centre
Expected Matured number of stores
Expected Average business per Matured store
p.a.
Initiatives

eCommerce Simplified

FY17E
Jan-14

35 - 40 crore

80 - 100 crore

Vidarbha Maharashtra,
Andhra Pradesh,
Karnataka, Kerala,
Punjab, Himachal
Pradesh

Rest of India

3,500 4,000
4~ 5

8,000-10,000
9 ~ 10

30% of previous close 50% of previous close

20 lacs
Mobile commerce
Specialized Store

40 lacs
C 2 C commerce
DIY Stores

For further information, please contact

Company :

Investor Relations Advisors :

iStreet Network Ltd.

CIN - L51900MH1986PLC040232
Mrs. Ruchi Seksaria, Company Secretary
ruchi@istreetnetwork.com
www.istreetnetwork.com

Strategic Growth Advisors Pvt. Ltd.

CIN - U74140MH2010PTC204285
Mr. Shogun Jain/Mr. Kevin Shah
jshogun@sgapl.net / skevin@sgapl.net
www.sgapl.net

eCommerce Simplified