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IAG Case Study Golduin Retail Phase II Team Blankspace NMIMS Mumbai Neha Butala Ruchita Sen

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Ecommerce pitchbook nomura case study IAG

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Page 1: Ecommerce pitchbook nomura case study

IAG Case Study Golduin Retail

Phase II

Team Blankspace NMIMS Mumbai

Neha Butala Ruchita Sen

Page 2: Ecommerce pitchbook nomura case study

Agenda

Company Overview

Golduin’s Performance and Strategy

Industry Overview and Dynamics

Golduin’s Valuation

Use of Proceeds

Listing Locations

Risk Factors

Appendix

Page 3: Ecommerce pitchbook nomura case study

Company Profile

Company Overview

Consumer Electronics

Consumer Appliances

Apparel

2013 2009 2011

Switched to market place model Birth of

Goldruin Retail

Dec: Series A funding Zartell, Bereth ($41 M)

Entered China, acquisition of Tarthe Retail

Jan: Seed funding Zartell ($15M)

2010 2012 2014 2015

Series B funding Bereth, Blue Hill, Hetfield $65M

Mar: Entered India, acquired King Kross Tech

Nov: Series C funding Zartell, Bereth, Orome

($500M)

Mar: Acuired Sion Retail in India

Acquired Manzel – apparels company

Turned profitable

Global Revenue $1.2B

2016 2017 2018

2-3 fulfilment Centres with Investment of $45M

Raised $700m Through IPO issue

Introduced in-house payment system

Fifth-largest E-Commerce Company in GMV terms

Diversified into E-retailing

Rebranded as the Biggest brand hub

Founding John Doe, in 2009

Headquarters and Offices

Dallas, Texas

Regional offices in Shanghai, Bengaluru, Manila, Jakarta

Geographic Mix Present in US, China, India

Equity Partners Zartell Investments, Bereth Capital, Orome, Hetfield, Blue Hill

Timeline

Sectors Geographical Locations

Footwear

China 44%

US 49%

India 7%

*Revenue Breakdowns for 2015 by country

Page 4: Ecommerce pitchbook nomura case study

E-Commerce Market accounts for 6.5% of retail sales

Golduin Retail Business Model

Partners

Strong Collaboration with vendors, a count of 400,000+ Long term association with leading brands

Capability

Marketplace model for operational efficiency Strong business analytics team Plans to develop in-house payment system

Revenue Sources

Revenues from commissions Other income includes Vendors Annual Fee, Fulfillment Centre usage, Advertising, subscriptions

Market Segments

Catering to upper middle class, upper class in US For India and China, upper middle class and middle class segments between ages 13-58 using Internet

Management Team

CEO - 15 years in Consumers Appliance CFO - Qualified CPA, Previously head of audit ,control Sales Head - 10+ Years in Apparel sales experience

Value Proposition

Following differentiating strategy to focus on enhancing customer experience

Marketing Channel Distribution Channel

Operates with a marketplace model having 10 fulfillment centres in the operating geographies

Major Capital Investment made in fulfillment centres Switch to marketplace based model to reduce inventory costs Plans to develop an in-house payment system Cost of capital was low as financing was done through debt, funding rounds

Costs

All marketing channels used, reliance especially on social media networks

Channelizing resources by entering into high growth markets through acquisitions Focus on high growth markets like China, India

Growth Strategy

Differentiating strategy driven by a superior customer experience Competed with cost leadership strategy with focus on particular segments

Offering premium services for consumers for enhanced

Competitive Strategy

Page 5: Ecommerce pitchbook nomura case study

Industry Overview

Global Scenario

•E-commerce is changing the way people do their business •Trending Business Methods: Personalization and Mobility •Market Players tweak recommendations to making it more personal. Shopping has become more mobile and players are opting for more channels •Alibaba and Amazon are two major global players •Huge growth potential in the emerging markets India and China

Number of Users

GDP/Capital

Increasing Internet Penetration

Smartphone Penetration

Innovative payment products

Change in customer behavior

Cheap and reliable technology

Social Media

Push into International Market

Mobile Platforms Social Media

Analytics

Omni-channel service

Sharing Economy

SMAC

Virtualization

Global E-Tail Sales

0%

5%

10%

15%

20%

25%

0

500

1000

1500

2000

2014 2015 2016 2017 2018 US $ Billions Growth Rate

No of Internet users and penetration

46%

87%

19%

86%

53% 59%

0%

20%

40%

60%

80%

100%

0

200

400

600

800

China US India Japan Brazil Russia No of Users (Mn) Penetration (%) Sources: Euromonitor, Capgemini Report

Challenges faced by Industry

•Lack of governing structure •Integration of distinct technology •Majority of online retailers lack in digital marketing skills

Key Drivers Future of E-commerce

•The dynamics of the industry is constantly changing •The taxation policies are not specified •Cyber Security issues

7.30%

12.40%

0.00%

10.00%

20.00%

2015 2019

E-Tail Contribution to Global Sales

Page 6: Ecommerce pitchbook nomura case study

Golduin’s

Key Financial Metrics

77.31%* Gross profit Margin 2016-19

1.76* Current Ratio - 2015

17.30%* Avg Growth EPS 2016-19

14.19%* CAGR Revenue 2016-19

81.36%* Avg growth of RoE 2016-19

1.23* Debt-Equity Ratio 2015

0.00%

5.00%

10.00%

15.00%

-100 0 100 200 300 400

Re

ven

ue

Mar

gin

s

Revenue

India

US

China

Revenue/Margin Comparison

Key Performance Metrics

The size shows margin in the respective geographies

Return on Equity

Net Profit Margin-0.01

Asset Turnover- 0.95

Equity Multiplier- 2.22

Profitability

19 42 115 226 390

625 959

0 26 83.38

158.17

272.12

436.08

668.73

0

500

1000

1500

2000

2014 2015 2016 2017 2018 2019 2020

Operating profit Nopat

0.00

100.00

200.00

300.00

400.00

USA China India

Advertising revenue Buyers’ memberships Annual Registration fees

Revenue Sources

Commission Fees for fulfilment centres

Please refer Excel for detailed Income Statement

Dupont Analysis

Working Capital

0

50

100

2014 2015 2016 2017 2018 2019

Page 7: Ecommerce pitchbook nomura case study

Golduin’s Chinese Story

27%

15% 50%

8% 31%

19%

43%

7%

2019 2015

Sector Market Growth Driver

Company Growth

Commissions

Consumer Electronics 15% 21% 4.5%

Consumer Appliances 13% 19% 4.5%

Apparel 24% 29% 9.7%

Footwear 24% 30% 9.7%

Revenues Mix

Revenues Projections

GMV Projections

Current Market Size – 20.38 Billion Market Share 2.6% GMV Top 5 market position

High growth in Apparels, Footwear Segment

2077 2931 4214

5916 7889

10052 12971

16545 15709

2013 2014 2015 2016 2017 2018 2019 2020 2021

Golduin’s Strategy for China

Used Inorganic Expansion to gain entry Acquisition of Tarthe Retail, Manzel ensured prominence immediately in electronics, appliances market

Future strategy is to capture high growth Apparel and Footwear segments

Current Market Scenario

0

2000

4000

2013 2014 2015 2016 2017 2018 2019 2020

Consumer Electronics Consumer Appliances

Apparel Footwear

Other Income Figures in $Millions

* Please refer Excel for GMV Calculations

CAGR 43.02%

* Please refer Excel for Company Growth Rates

Page 8: Ecommerce pitchbook nomura case study

Golduin’s Indian Story

6% 4%

74%

16% 17%

11%

59%

13%

2019 2015

0

50

100

150

2013 2014 2015 2016 2017 2018 2019

Consumer Electronics Consumer Appliances

Apparel Footwear

CAGR 35.48%

Portfolio Mix

Revenue Projections

Sector Market Growth Driver

Company Growth

Commissions

Consumer Electronics 7.02% 2.7% 4.5%

Consumer Appliances 45.29% 6.3% 3.8%

Apparel 44.85% 39% 8.43%

Footwear 44.85% 39% 8.43%

Golduin’s Strategy for India

Current Market Scenario

Used Inorganic Expansion to gain entry Acquisition of: Kingscross Tech Sion Retail Strategy is to capture high growth Apparel and Footwear segments

High growth in GMV over the years expected

GMV Projections

358 455 713 943 1133 1641 2319

3231

4987

2013 2014 2015 2016 2017 2018 2019 2020 2021

Current Market Size – 800 Million Market Share 10.5% GMV

High growth in Apparels, Footwear Segment

Ecommerce Sector booming in India

* Please refer Excel for GMV Calculations

Page 9: Ecommerce pitchbook nomura case study

Market Overview US Story

9%

19%

61%

11% 12%

13%

63%

12%

2019 2015

0

200

400

600

2013 2014 2015 2016 2017 2018 2019

Consumer Electronics Consumer Appliances

Apparel Footwear

CAGR 22.44%

Portfolio Mix

Revenue Projections

Sector Market Growth Driver

Company Growth

Commissions

Consumer Electronics 2.5% 2.5% 5%

Consumer Appliances 19% 19% 4.5%

Apparel 9% 9% 11.28%

Footwear 9% 9% 11.28%

Golduin’s Strategy for US

Current Market Scenario

GMV Projections

1647 2465

3672 4046 4469 4950 5497 6121

6835

2013 2014 2015 2016 2017 2018 2019 2020 2021

Current Market Size – 39866.66667 Billion

Market Share 1.5% GMV

Top 20 player by GMV

* Please refer Excel for GMV Calculations

Reducing Focus for Golduin Focussed on high customer satisafaction and premiumness to capture customer loyalty Future strategy is to focus on emerging markets like India and China as Growth rates are low

Page 10: Ecommerce pitchbook nomura case study

Market Overview Shareholding Pattern

Investor Pre- IPO Pattern

Post IPO Pattern

Zartell 33% 23%

Bereth 22% 12%

John 35% 26%

BlueHill 3% 3%

Hetfield 3% 3%

Orome 4% 4%

Float Shares - 29%

Total 100% 100%

33%

22%

35%

3% 3%

4%

Pre-IPO Pattern

Zartell Bereth John BlueHill Hetfield Orome Float

23%

12%

26% 3% 3%

4%

29%

Post IPO Pattern

Funding Round John Zartell Bereth Orome Hetfield Blue Hill Total Shares Price Per Share

Seed 135,000,000 15,000,000 - - - - 150,000,000 $ 1.00

A 112,500,000 30,000,000 7,500,000.00 - - - 150,000,000 $ 1.82

B 96,000,000 30,000,000 15,000,000 - 4,500,000.00 4,500,000 150,000,000. $ 3.94

C 52,500,000 49,500,000 33,000,000 6,000,000 4,500,000 4,500,000 150,000,000 $ 11.49

Total 35% 33% 22% 4% 3% 3%

Assumption: Initial $1 face value per share

Page 11: Ecommerce pitchbook nomura case study

Market Overview Revenue Estimation – Market Growth vs Company Targeted Growth

Country Consumer Electronics

Consumer Appliance Apparel Footwear

India 2.7%/10.39% 6.3%/14.26% 39%/49.40% 39%/49.4%

China 15%/25% 13%/23% 24%/35% 24%/35%

USA 2.5%/2.5% 19%/19% 9%/9% 9%/9%

489

750

1210

1426.61

1695.54

2023.48

2425.63

2921.59

3536.76

2013

2014

2015

2016

2017

2018

2019

2020

2021

Scenario 1: Golduin grows as per Market Growth Rate

Scenario 1: With company going forward with Market Growth rates, the company will not achieve the targeted revenue of $4billion. It will reach $2Billion by 2019. Scenario 2: Company will have grow more than the CAGR growth of the respective sectors, this would be done as Golduin tries to increase its market share in India and China by organic and inorganic growth so that the company sees higher growth than CAGR.

* Please refer Excel for detailed revenue projections in Scenario 1 and 2

Scenario 2: Golduin growth exceeds Market Growth Rate

489

750

1210

1539.00

1539.72

2488.65

3163.76

4021.99

4137.62

2013

2014

2015

2016

2017

2018

2019

2020

2021

Page 12: Ecommerce pitchbook nomura case study

Market Overview DCF Valuation

Assumptions in DCF Model

Assuming listing location USA •Risk Free rate =2.245%(USA Treasury bonds) •Tax Rate=30.3% •Equity Risk Premium-5.78% •Terminal Growth-3%

WACC -7% Enterprise Value -8.6bn Equity Value -8.609bn Share Value -$39.04

Assumption Revenue have been projected based on the target revenue of

the company

Increase in EBIT growth has been assumed to decrease over the years. Depreciation and working capital has been projected by studying comparable companies value. WACC is changing each year due to change in capital structure of the company.

Sensitivity Analysis-Terminal Growth

WACC Values

13336.45 5% 6% 7% 8% 9%

Pe

rpe

tuit

y gr

ow

th

1% 16115.02 12892.02 10743.35 9208.584 8057.511

2% 21699.43 16274.58 13019.66 10849.72 9299.758

3% 32868.26 21912.17 16434.13 13147.3 10956.09

4% 66374.74 33187.37 22124.91 16593.69 13274.95

5% -335703 83925.75 37300.34 23978.79 17668.58

Sensitivity Analysis-Enterprise Value

WACC Values

8609.414 5% 6% 7% 8% 9%

Pe

rpe

tuit

y gr

ow

th

1% 10287.5 8382 7106.5 6191.4 5501.9

2% 13557.2 10362 8439.3 7152.3 6229.2

3% 20096.5 13663 10438 8497.5 7199

4% 39714.4 20265 13770 10515 8556.7

5% -195701 49972 22656 14839 11129

Revenue Forecast

India, China and Usa Markets differ in the CAGR. The Valution of the company is done taking into consideration the GMV Transacted between the firms. Growth in other income is regressed in lieu with the increase in Revenue

Page 13: Ecommerce pitchbook nomura case study

Market Overview Trading Multiples

Assumptions: Funds Raised in IPO -$1 bn

Filing Range - 1-Year Forward P / E Multiples

Forward P/E Assumptions: Units 16.0 x 20.4 x 32.3 x 38.2 x

Forward Year 1 Net Income: $ M $ 226.9 $ 226.9 $ 226.9 $ 226.9

Implied Post-Money Equity Value @ Trading: $ M 3,640.1 4,634.1 7,330.2 8,669.1

Issuer - Existing Shares Outstanding: M Shares 150.000 150.000 150.000 150.000

Implied Offering Price per Share: $ as Stated $ 17.60 $ 24.23 $ 42.20 $ 51.13

Pro-Forma Shares Outstanding, Post-IPO: M Shares 182.0 178.5 174.6 169.9

Post-Transaction Shares Outstanding Calculations:

Primary Shares Issued in IPO: M Shares 56.8 41.3 23.7 19.6

Secondary Shares Sold in IPO: M Shares 17.4 12.7 7.3 6.0

Total Shares Issued or Sold in IPO: M Shares 74.2 53.9 31.0 25.6

Pro-Forma Shares Outstanding, Post-IPO: M Shares 206.8 191.3 173.7 169.6

Total Offering size 1306.691 1306.691 1306.691 1306.691

Primary Offering 1000 1000 1000 1000

Key Takeaways: Average Primary shares issued in an IPO- 35.3 Million

Average Secondary shares issued in IPO- 10.8 million Price band of shares $17.61 to $51.13

Average Implied offering of share - $34

Primary shares allocation - 77%

Secondary Share Allocation -23%

Multiples Baba us equity JD US Equity VIPS US

Equity MELI US Equity

AMZN US Equity

EBAY US Equity

iaci us equity

EBITDA FY+1 49,805.4 (551.9) 2,356.9 181.6 10,662.8 3,476.8 485.8

EV/ EBITDA FY+1 25.96x -424.72x 32.62x 25.75x 27.70x 10.73x 11.67x

P/E FY+1 32.34x - 38.20x 46.36x 129.20x 16.04x 20.42x

Page 14: Ecommerce pitchbook nomura case study

Market Overview Football Field Analysis

0

10

20

30

40

50

60

70

80

90

P/E Ratio('15)(20x-30x)

P/E Ratio('16)(20x-30x)

E/V EBITDA('15) E/V EBITDA('16) Perpetual Growth Downside

Perpetual Growth upside

WACC Downside WACC Upside

18.9

2.46

6.7

18.9

75.24

34.03

56.625

4.4

6.6

12.6

6.9

30.06

46.75

45.8

75.24

46.75

Fair share price of IPO- $40

Relative Valuation DCF Valuation

Page 15: Ecommerce pitchbook nomura case study

Market Overview Use Of Proceeds

Develop an In-house payment system

•For setting up a secure server and use SSL Technology for data encryption •For buying a system to process credit card payments and get an internet account with a bank merchant

Advantages: •More flexibility and autonomy •Setting up a system is a one time cost and it would save the processing fee In the long run •Advanced fraud detection system are better placed to mitigate brand and business risk •Enhance relationship through high value and stick service

Build fulfilment Centres

•With the increase in GMV in future, the number of fulfilment centres needed will Increase • An additional centre will lead to an increase in cost but it would be offset by increase in the other revenues component • Acquire selective control over inventory

Investing in Marketing campaign

Repayment of Outstanding Debt Inorganic Growth through Acquisitions

1

2

3

•Strategic acquisitions in India, China planned in the future for gaining market share •Primary concern is synergy with Golduin along with acquisition price, company profitability •Possible Acquisitions in detail in next slide

•India – Firstcry, FashionandYou •China - Vipshop

•Marketing campaigns required for customer acquisition, customer retention •Customer Acquisition: Use of Google Adwords, Facebook advertisements Offering Facebook and Twitter competitions Initial Registration discounts Referral Discounts •Customer Retention: Offers for repurchase on site Festival Discounts like Diwali Dhamaka Sale, Singles Day

•Golduin plans to retire long term debt by 2020 •Retiring debt will help in reducing interest expenses, and provide more flexibility in operations •Refer Debt Schedule for detail of debt repayments

5

4

Page 16: Ecommerce pitchbook nomura case study

Market Overview Evaluation of possible Indian Acquisitions

Indian Possible Acquisitions

Parameters for Selection*

Yepme Jabong Firstcry PepperFry FashionAnd You

Naaptol

11.5/18 11/18 14.5/18 10/18 13.5/18 10.5/18

Apparels Consumer Electronics

Acquisition Price(3)

Total (18)

Sector Growth(3)

Synergy(3)

Profitability(3)

Company Portfolio(3)

Differentiation(3)

Sector Furniture Baby Products Apparels Apparels

Page 17: Ecommerce pitchbook nomura case study

Market Overview Use of Proceeds – Indian Target Acquisitions

About: Asia’s largest online portal for baby and kids products Sector Growth: India’s booming population with increasing disposable incomes makes baby product segment . Company Portfolio: Has tied up with 500 brands, offers over 90,000 products, over 100 retail stores pan India spread across 82 cities Profitability: Achieved Breakeven in 2012, anticipating 100% growth every year Differentiation: Entered into a segment which is highly unorganized and few organized players, offering premium brands

About: Offers premium apparel, footwear with discounts Sector Growth: With India’s potential in ecommerce, and apparel and footwear E-tail growth at 39% Company Portfolio: Partnered with high fashion and premium brands across fashion apparel, designer wear, handbags, footwear, watches, jewellery, fragrances and home décor. Holds 15+ new sale events per day, has a “Lounge” section that offers only exclusive designer brands Profitability: 5,500-6,000 orders on a daily basis with double digit growth monthly, currently averaging GMV of $4 million per month Differentiation: Entered as one of the earliest with flash sales model in India

Synergy and reason for Acquisition: Tap into the growth of baby and kids segment Has core strategy of premium products like Golduin Company has Wide Geographical Presence which will help Golduin increase its footfall

Acquisition Target # 1 Acquisition Target # 2

Synergy and reason for Acquisition: Excellent financials with exclusivity in brands in line with Golduin’s

strategy The company is looking to expand its merchandise making international

brands, a part of its portfolio, Golduin can provide sources

Target Acquisition Price: $75 Million

Target Acquisition Price: $50 Million

Page 18: Ecommerce pitchbook nomura case study

Market Overview

Chinese Possible Acquisitions

Parameters for Selection

Jumei Yihaodian Dangdang Vancl Vipshop

Evaluation of possible Chinese Acquisitions

Apparels Apparels Books, Apparels, Electronics Apparels Food, appliances, baby care

Acquisition Price(3)

Total (18)

Sector Growth(3)

Synergy(3)

Profitability(3)

Company Portfolio(3)

Differentiation(3)

Sector

10.5/18 10.5/18 11.5/18 11/18 14/18

Page 19: Ecommerce pitchbook nomura case study

Market Overview Use of Proceeds – Chinese Target Acquisitions

Profitability Synergy

Acquisition Target # 1

About: China’s largest ‘special offers’ e-commerce platform, flash sale website for apparel and cosmetics Sector Growth:24% is the estimated CAGR growth of apparel segement. Company Portfolio: Has tied up with 6000 brand partners, No. 8 internet retailer in China, Profitability: Achieved profitability in 2012-13, high growth rate every year, its sales by 135.5% from $692.1 million in 2012 to $1.63 billion in 2013, according to the 2014 China 500. Differentiation: Works as the only popular and known flash sale website in China offering deep discounts in clothes and cosmetics

Synergy and reason for Acquisition: Synergy in core strategy of customer satisfaction - Hasinvested in expanding warehouse facilities and logistics networks to better

service its customers

Entry into cosmetics – Golduin can leverage the brand alliances of Vipshop to enter into cosmetics segment

Immediate access to large customer base: Vipshop boasts of high customer loyalty and repeat purchases

Target Acquisition Price: $175 Million

Page 20: Ecommerce pitchbook nomura case study

Market Overview Possible Listing Locations

Requirements Usa NASDAQ (std 3)

India’ NSE China’s (SSE)

Golduin data

Paid in capital - $1.7m - -

Revenue $90m - - $1.2bn

Min Avg Market Cap

$850mn $4m

$7.8 m $1.27bn

Profitability - 3 Years 3 year profitable

1 year profitable

Listing in USA

Liberalisation of interest rates Emerging internet finance Service expansion plan Anticipated launch of

Shanghai –Hongkong connect New registration based

system

IPO Scenario till June 2015

•Shanghai has been the IPO powerhouse •It has been ranked first for the funds raised. •In 2Q15 all IPOs have risen the maximum 44% allowed on first trading day •Planning to launch an new market for Emerging industries

Access to the largest source of capital in the world Improves timeliness and cost of

capital of subsequent offerings Gives investors the opportunity

to realise and monetise the appreciation in the value of their investment

Offers access to US commercial paper markets through the establishment of a US credit rating

Many Ecommerce companies already listed

× Company would being subject to the strict US regulatory environment

× Compliance with the provisions of the Sarbanes-Oxley Act can be a time consuming and costly

× Results in the company being subject to the rigorous SEC accounting, disclosure and reporting requirements

Pros in Favour

Due to recent economic downturn ,the number of IPO applications and the capital raised will drop in the future according to CSRC and the single class share listing rule Is an added disadvantage.

IPO Scenario after 2015

Comparison of listing in the three Countries

New e-IPO rules allow companies to list in 6 days.

Market sentiments are positive due to the current government

Expected IPO Perfromance to be better vs US, China

Cons Against Pros in Favour

Listing in China

Listing in USA

Pros in Favour Cons Against

× No Ecommerce player listed on NSE, Infibeam to issue IPO

× Investors does not have much idea about Ecommerce performance in Share Market

Page 21: Ecommerce pitchbook nomura case study

Market Overview Listing in USA

Golduin’s Current Situation

•John has 26% of shares does not have the majority control •The company was able to break even in the year 2015 so its been profitable for past one year. •Dual share holding is an option they don’t want to chalk out. •Its an USA company with 49% revenue from its domestic country. •Debt was raised in USA because of its lower cost. •The company plans for mergers and acquisitions in future.

Why USA

•It will allow John to maintain control of the company despite not owning significant portion of shares. •The dual share holding arrangement allows the company list new shares without giving over any new powers to shareholders •The New York listing gives an added trust to the investors because of the Reputation. •Having US dollar shares on US exchange will simplify future acquisitions for them by lessening the scrutiny. • It has one of the largest capital market liquidity in the world

Choosing between NASDAQ and NYSE

NASDAQ is more cost efficient and tech –savvy as compared to NYSE. The comparable companies like Amazon and Ebay are listed on it. So for Golduin NASDAQ is a better option

Past IPO performance

Alibaba which was listed on USA stock exchange,became the largest IPO ever. it sold additional shares on first day of trading itself and was able to raise a smashing $25bn.The shares priced at $68 jumped to as high as $99.7 on first trading day itself. Amazon .com ended $54mn richer as its IPO soared 30% above its opening Price.Even the pre-IPO price had been raised twice Ebay.com raised $63mn when the shares went up 163.2% and the company’s market cap hit $1.9bn when its competitors’ Onsale’s cap was $350.4 mn At the flag end of the day.

Availability of Capital on NASDAQ

NASDAQ has 3500 companies listed on which has $3.5trillion net worth.

Page 22: Ecommerce pitchbook nomura case study

Appendix

Page 23: Ecommerce pitchbook nomura case study

Shareholding Pattern

Funding Round Stake Bought (in %) Stake bought (in $) Shares purchased Valuation at the time

of buying

Seed 10% $15,000,000 15,000,000 $ 150,000,000.00

A 15% $41,000,000 $ 273,333,333.33

B 11% 65,000,000 $ 590,909,090.91

C 29% 500,000,000 $ 1,724,137,931.03

Assumption: Initial $1 Face Value per share

Funding Round John Zartell Bereth Orome Hetfield Blue Hill Total Shares Price per share

Seed 135,000,000 15,000,000 - - - - 150,000,000 $ 1.00

A 112,500,000 30,000,000

7,500,000.00 - - - 150,000,000 $ 1.82

B 96,000,000 30,000,000 15,000,000 -

4,500,000.00 4,500,000 150,000,000. $ 3.94

C 52,500,000

49,500,000 33,000,000 6,000,000 4,500,000 4,500,000 150,000,000 $ 11.49

Total 35% 33% 22% 4% 3% 3%