funding for sme in technology sector

8/14/2019 Funding for SME in Technology Sector

1/7

1

Confidential

Funding for SME

in Technology Sector


2/7

2

Confidential

Outsourcing (IT & BPO/KPO)

Drivers

Global market opportunity of $1,000B

India still leads the cost, quality, scale equation as an offshoredestination

Cost pressures in downturn will continue to drive outsourcing

Emergence

Several vertical industries are underpenetrated (e.g. Cable,Utilities, etc)

New horizontals are gaining momentum (e.g. LPO, Fundadministration, Remote Infrastructure Mgmt., Testing, etc)

Different geographical markets are embracing outsourcing (e.g.Venezuela, Dominican Republic, etc)

New business models are taking shape (e.g. Direct to

Consumer/SMB companies)


3/7

3

Confidential

Outsourcing (IT & BPO/KPO) contd..

Challenges Turbulence in some market verticals (e.g. BFSI) is delaying

contracts

Larger incumbents are stretching services to niche domains

FundingStrategy Market opportunities in niches that are in excess of $1B

Balanced center of gravity - partnering of U.S. and India cross-border teams

High-quality management teams with strong domain expertise


4/7

4

Confidential

Consumer Internet Services

Drivers Good user growth (40%)

Low cost alternative for all

Emergence

Commerce led mixed mode models

Comparison shopping, local search

Challenges

Access not widespread enough and cost not falling fast enough

Internet advertising not yet a significant enough portion ofmedia plans

Funding Strategy

Exploit early mover advantage and gain rapid scale

Build cross-functional teams : technology + consumer + domain


5/7

5

Confidential

Mobile VAS

Drivers

Greater pressure on Operators to increase ARPUs from 315M users (in2008)

GPRS subscriber base doubled from 21M to 46M

Emergence

Mobile Payments, Mobile Gaming, Advertising, Digital Music Cross Operator platforms like voice SMS

Challenges

Operators take a chunk of the revenue share

Low margin high volume

Funding Strategy

Differentiated through product offering/technology

Potential for global application

Preferably independent of carriers


6/7

6

Confidential

Products

Drivers

More and more development work coming into India

Telecom, Mobile already dominant local markets

Need for low price points

Emergence Networking solutions

Hosted applications for SMEs

Challenges Most local market not large enough

Lack of product management skills

Needs serious interaction with U.S. as most tech products

are global


7/7

7

Confidential

Products contd..

Funding Strategy Markets would be India + other Emerging markets to gain

critical mass

Teams would be technology + product management + cross-border

CEO preferably from business background

funding for sme in technology sector

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