overview

Wikimart history2009 2010 2011 2012

$12.5 mlnfrom Tiger Global

$17 mlnfrom Tiger Global

& RussianInstitutional Investor

$12 mlnfrom Tiger Global

& AngelsFundraising

Business model

Key metrics

B2C Marketplace Marketplace + Retail

Marketplace + VMI

1 -powered Retail

$0.7 mlnfrom Angels

1 VMI — Vendor Managed Inventory

GMV, mln $GP, mln $Retale sales, mln $MerchantsVisits (Dec), mln

7.1

2,400

11.14.6

2.21.5

2,200

5.6

3.4

1,300

1.30.7

400

0.4

2

overview

Wikimart in reality: sweat, mistakes, and hard-learned business model

2008 2009 2010 2011 2012 2013

Business model

"eBay for Russia"

“Russian Rakuten”

SEO-driven B2C marketplace

Marketplace + Stock retail

VMI-driven retail +

Stock + Marketplace

VMI + Stock +

Marketplace

Market

Moscow Moscow Moscow Moscow Moscow Moscow + Regions

Key discoveries

Classic auc-tion-style model irrelevant in Rus-sia. C2C taken by

classifieds

20,000 online

merchants exist in Moscow, acquisi-tion cost low. SEO works fantastically

Merchant quality insufficient, can't

be improved on a current scale

Marketplace gross margin, service

quality insufficient, becomes a threat

Stock retail re-quires different online MKT, sig-nificant working

capital/warehouse

Model works, need scale-up.

Merchant quality improves

Merchants

- 400 1,300 2,200 2,400 3,000

VMI-partners

- - - - 70 200-300

3

overview

Wikimart business model

23 mln customers 1

1 23 mln people were making online transactions out of 68 mln people regularly using Internet in 2012.

Merchants2,400

Suppliers100

Wikimart stock3,000+ SKU

VMI stock100,000 SKU

Marketplacemerchandise2,000,000+ SKU

Predictably convenientOne service standard for every purchase

Human touchAttitude of a small shop

around the corner

One-stop-shopLarge available selection

for all my needs

Smart ChoiceEasy to make the right choice

4

overview

Pure Market Place: endangered species

Vertical e-commerce: not a multi-category player

Offline stores for online customers: no format yet

Vendor managed inventory: future of e-commerce / market place

Flash sales: a feature, not a business

Main e-commerce models

5