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What is Myntra
Myntra is the one-stop shop for…
Creative, unique and personalized consumer products
For individuals, groups, colleges & corporations to creatively express their personality/brand say things to loved ones in style and in essence ‘be creative’ share a sense of belonging to a thought, a cause or a belief
To become the most innovative personalization company in India
Marketing [to be hired] VP. 06 .. VP Engg. Tavant Technologies. 4 early stage start-ups [Newscale.present) Raveen Sastry. Tavant Technologies. CEO (Nov. Marketing (Aug.www. sourcing. 9 yr exp. 06 . Product conception. 11 yr exp. Meritos. R&D . IIT-K. Pramati Technologies MBA.present) Vineet Saxena. IPTouch. McGill. Dir.com Myntra Team Name Mukesh Bansal. built app server. 07 – present) Rahul Agrawal. 8 yr exp. VP Biz Dev (Dec. Xora. 9 yr exp.myntra. 06 . Trigyn Managed large projects. Ewanted. Netcraft MBA. IIM-B. Products [To be hired] Seasoned marketing professional with strong brand development exp. Nextag]. (Nov. Mitoken IIT-K. 2 yr exp. VP Sales (Feb. events management exp VP.present) Background IIT-K CSE. VP Operations (Nov. Centrata. Ambit Finance Expertise Product Management & Marketing Over 10 enterprise & ecommerce products Performance architect. 07 – present) NIT Engg. designed and implemented proceses Product mgmt and Channel partnerships Investment banking Ashutosh Lawania. 9 yr exp. 07 – present) Sankar Bora.
Percept (Hanuman returns) Strong foothold among designer community Over 15. total team size: 22 people . 2500+ active designers #1 in this space in India in terms of traffic [alexa: 1. Kotak Mahindra bank.com Milestones Revenues grew 5-fold during Sep-Apr period [25% month over month] – on track to hit US $1 million annual run rate in Q3. Indyarocks.www. SabMiller. Godrej. Centurion Bank.110] and product offerings Developed capability to handle up to 400 unique orders per day Great success in hiring talented individuals who are working well as a team. Ibibo.myntra.000 published designs. 2008 Strategic partnerships with CricInfo. BigAdda.
08 Apr. 07 Jan. 07 Nov. Revenue of Rs 2 lacs/month Launched the affiliate program Crossed Rs 10 lacs/month revenue Market Launch Bridge Round (400k) Nov. $75K start-up capital Company Incorporation Launched the beta site Closed the seed round [200K] Active Marketing.myntra. 08 Feb. 08 . 07 Sep. 07 Oct.com Story so far Founding Team.www. 07 May. 06 Feb.
09 .myntra. 08 Nov. 08 Dec.000 visits/day Cross $350K in quarterly revenue Start sales office in Delhi/NCR region Get 20K+ online orders for Valentine/Holi $1. 08 Jan. 09 Feb. 09 Mar.com Story ahead Close Series A Funding Achieve $1 million run rate 50 brand shops live Achieve 10.25 million revenue for 08/09 Aug.www. 08 Oct. 08 Sep.
myntra.www.com MARKET .
Revenue expected to double by 2010 Over 100 personalization kiosks doing about $10 million business Corporate Gifting Total corporate gifting market is about $2 billion Top 10 cities having multiple players in the $10-$25 million range Merchandize Bollywood merchandize is expected to be $200 million business by 2010 Major growth expected in sports merchandize as an influence of franchise model for cricket .2 billion Growing 20% per year Personal Gifting Over 10.com Relevant Market Data .myntra.000 gift shops in India Archie's has about $25 million revenues.India Total addressable personalization market is over $ 1.www.
Toys/Kids products are one of the fastest growing categories Buildabear. watches. expected to grow 30% this year Over 10 companies at $10 . Colleges.$30 million revenue rate. Corporate Online personalization companies in US are growing rapidly Zazzle going from $20 million to $80 million in 2 years Cafepress did $120 million in 2007. are becoming popular .myntra.com is at $500 million revenue Mytwinn has built a multi million dollar business in few years Personalized photo-books. bags.com Market Trends – around the world Personalized gifting market in US is estimated to be over $27 billion Hollywood.www. growing rapidly Accelerated Innovation in personalization space Direct printing /Sublimation technologies have improved drastically over last 4 years. furniture etc.
Individualization is increasing among the youth Strong desire to stand out from the crowd Groups Companies /Colleges keen on having online interface for merchandize Strong demand for creative designs for group merchandize. . The groups business with companies/colleges is very repetitive.myntra.000 per month tend to give 5-10 gifts/year People spend considerable amount of time/money for a unique gift Willing to pay a premium for their gift to stand out.com Key Market Insights/Trends Individuals People making over Rs 20.www.
com Target Market Segments Individuals > 5. clubs. websites] > 115 orders.myntra. events] > 300 orders.www. friends.000 orders 25% of Revenue • For creative self expression • Unique products for gifting occasions • Unique memorabilia for group/event • Creative designs for shared cause/expressions Groups [teams. colleges. parties. 50% of Revenue • Creative merchandize for events & celebrations • Institution specific branded shops • Creative promotional items for brand visibility • Increase stickiness of brand sites Brand Managers 30 orders 10% of revenue . 15% of Revenue Organizations [companies.
Brand Managers Custom designs based on a theme Much bigger set of products . Offline POS Tele sales. Outsourced Brand Managers Direct sales Product Requirements for Segments Individuals Self created designs or published designs Products that can be individually personalized Groups. trade fairs Sales Myntra.myntra. Outsourced Inhouse. SEO. bank transfer Cheque. Outsourced Groups Organization Inhouse. Cash Cheque. gradually moving to online Direct sales Mode Online.com. Offline Online. Offline Online. SEM. Check. Check.com Segment Engagement Model Segment Individuals Marketing Affiliates. Offline Payment Fulfillment Credit card. Net banking. Intranet. Referrals Affiliates. SEM. SEO. bank transfer Inhouse. Net banking. Outsourced Inhouse. Offline Intranet. Private interface Direct marketing. Organizations. Cash Credit card. trade fairs Direct marketing.www.
com Market Traction Partners Organizations Consumer Traction 300K page views/month 25K registered users Over 5000 orders Orders from 400+ cities Peak of 250 orders/day IIM .000 designs 2.www.BLR IIT .KGP 15.myntra.500 designers .
predefined designs Weakness Limited Reach.g.in.www. no design capability and no personalization Threat Medium Medium High Low Medium . strong sourcing capabilities Profile Small boutique shops with local operations Malls & Big Cities Start-ups like PicSquare.com Industry Landscape Offline Kiosks Online Players Product Retailers Corporate gifting players Photo sharing sites Pure play personalization Myntra [leader]. canvera Online presence Presence Strengths Targeted & Focused Offering Gaining mind-share as online photo printing grows Focusing on building the platform for ondemand personalization Small teams. Itasveer. scaling up will be a challenge Fashion Designers. Tantra t-shirts Retail stores Small to medium scale family businesses 4-5 big players in each top 10 city Long term accounts. dilsebol. distribution network Limited set of products. inkfruit. pringoo Online presence Pre-designed products. zoom.myntra. e. hepfly. Pre-defined designs No design library No technology.
475 65.487 No No No No N/A N/A N/A N/A T-shirt.myntra.700 # Personalization Products 18 products 10 products 4 products Only t-shirts Only t-shirts 7 products Online Affiliates Over 20 affiliates none 3-4 colleges none none none Pure play personalized merchandize companies myntra.083 9.003 33.com Pringoo. Mug and photos Specialty Photo product none none none Offline photographers Corporate gifting players All top ten cities in India have 3-6 corporate gifting players in the range of $5million to $20 million revenue.000+ < 1000 < 300 <100 N/A 1.in Hepfly. Mug and photos T-shirt.112 62.www.com xtees. Mug and photos T-shirt.com Competitive Comparison Company Alexa (in India) Designer Community Yes No Limited Yes No Yes # Published Designs 15.com 1.com Gnome.867 38.669 5.com Itasveer.147 15.319 3.com dilsebol.343 Photo printing companies Picsquare.com Zoom. .in Canvera 3.
myntra.www.com PRODUCT OFFERING .
myntra.www.com Product/Service Offering Create your own product Buy from design library Sell your designs Our Products T-shirt Greeting Card Polo T-shirt Key-chains Posters Mugs Coasters Diary Plate Watch Teddy Bear Pendants Piggy Bank Pencil Box Sweatshirt .
trendy and fresh Cater to diverse customer tastes .myntra.www.com Product Strategy Continuous product innovation Enable personalization for new products Offer trendy and fresh products Provide new parameters for personalization Increase margins steadily High to premium pricing Strive for exclusivity in product offerings Rich and topical design library Keep the content current.
com portal Automation Product R&D Processes Supplier Network Sourcing .com Personalization Platform Individually personalized products Hosted niche merchandize portals Content monetization for affiliates Personalized groups gifting Platform for on demand customization Designer Community Customization tools Licensed Content Myntra.www.myntra.
myntra.com Entry Barriers Designer Community: There is a huge first mover’s advantage in building a loyal designer community Affiliate Partnerships It takes considerable time and effort to build a large number of active affiliates and the cost for switching is very high for affiliates Back-end Automation Mass personalization requires highly efficient and automated operations/sourcing which can only be built over a period of time Brand Building a consumer brand takes time and overcoming this will be a big challenge for a new entrant .www.
myntra.com SCALING THE BUSINESS AND EXPANSION PLAN .www.
myntra.www.com Business Model Margins by product category/segments: (Rs 100 – Rs 500+ per item) Product Categories Apparel Ceramics Paper based New Products Individuals (online) 50% 60% 60% 65% Individuals (offline) 55% 70% 50% 65% Groups (10-50) 35% 50% 35% 40% Groups (50-200) 20% 25% 20% 30% Gross/Net margins by fiscal year 08-09 Cost of Goods Gross Margins Sales & Marketing G&A Net Margin 61% 39% 40% 48% -49% 09-10 49% 51% 25% 32% -6% 10-11 45% 55% 25% 23% 7% 11-12 44% 56% 20% 19% 17% 12-13 43% 57% 20% 16% 21% .
000 visits/day by FY 08-09 -> 15 lacs/month 40.www. companies and websites 200 by end of FY 08-09 .>20 lacs/month 500 by end of FY 09-10 -> 50 lacs/month Expand offline POS and Kiosk presence 15 by end of FY 08-09 – >30 lacs/month 50 by end of FY 09-10 – >1 crore/month Establish sales/marketing presence in other cities 3 cities by FY 08-09 -> 60 lacs/month 6 cities by FY 09-10-> 1.com Expanding the market presence Establish online interfaces for colleges.000 visits/day by FY 09-10 -> 50 lacs/month .myntra.5crore/month Scale –up the direct online traffic 15.
com Cash-flow projections .www.myntra.
www.com Product Roadmap Personalization Products Functional Roadmap Toys Sports Accessories School Supplies Fashion Accessories Home Decoration Items Learning Kits Virtual Creations Photo products interface Plug-ins for social networks Designer marketplace Mobile interface Self Service affiliate set-up Promotional tools for designers Premium designer shops .myntra.
www.com Challenges Scaling this business requires very sophisticated operations and distribution logistics Expanding across geographies and products requires process innovation and automation on a large scale A large chunk of our target market is still offline or available via indirect channels – requires innovative sales channels It is imperative to introduce new products on a regular basis to command premium pricing .myntra.
myntra.www.com OPPORTUNITY SUMMARY .
. Can be readily captured using smart solutions/products Bollywood and Cricket merchandize markets are grossly untapped in India. The college/corporate merchandize business is highly inefficient & fragmented. Both are all set for rapid growth over next few years.myntra.www.com Opportunity Assessment The burgeoning middle class with disposable income is ready to lap-up the personalization products The gifting market is going through a major re-haul and ready to accept new innovations.
Reliance retail. Bigadda. Futurebazaar.com Exit We plan to file for IPO in year 2012 when we would be cross USD 50 million in revenue [expect 3-6x revenue multiple] There are a few other exit possibilities including: A foreign player entering Indian market E. zazzle etc.g. Content rich web properties looking to monetize content/traffic e.com .myntra.www. Ibibo etc. cafepress.g. Companies betting on online ecommerce in a big way E.g.
com APPENDIX (Supporting Slides) .www.myntra.
myntra. Sales/BizDev: 5. Yahoo Rohit Agrawal: CEO. 1 from REC Board Sasha Mirchandani [Mumbai Angels] Gagan Kumar [Erasmic] Mukesh Bansal [Myntra] Ashutosh Lawania [Myntra] Advisors Shantanu Bhagwat: Amadeus Capital Priyank Garg: Director Search. CEO/HR: 2 5 employees from IIT. Marketing: 3.com Organization: Employees Employees Team Strength: 22 Product Engg: 5. Operations: 8. 1 from McGill (MBA). Apparatus Media Labs . 2 from IIM.www. Techtribe Networks Shiva Kumar: CEO.
08 as a bridge round that will convert into equity as part of next round .myntra.www.com Share-holding We have also raised USD 400K in April.
3 million Capital Equipment: $0.5 million Establishing 1000 sales agents: $0.3 million .5 years in following fashion: Sales/Marketing presence in 15 cities: $0.myntra.7 million Brand Development/Strategic Marketing: $0. platform usability/scalability: $0.0 million Myntra website.com Capital We will plan to deploy $4 million over next 2.4 million Product Sourcing/R&D: $0.8 million 100 Physical Kiosks/Mobile Units: $1.www.
www.com Sales Channels Channel Online . colleges. event managers and social groups for incentives based sales Direct sales force signing companies. Sales Agents Designated agents in gift shops. college and company campus.myntra. event management companies and gift shops as customers Point of sale at various gift shops and novelty stores where customers can browse designs via a terminal and place the order that is fulfilled centrally Kiosks in malls. alumni site. event site etc. retail outlets.Affiliates Description Customers buying directly at the myntra.Direct Online . Kiosks will display various product samples and have limited fulfillment capabilities Sales Team Offline POS Kiosks . company intranet.com portal Customers buying through affiliate site such as another content site. colleges.
com Monthly Metrics [Sep.myntra.www.07 to May. 08] .
spend per group $250 $100 $2.2 million 2 million 10.com Market Size Market Individuals Segment IT/BPO Professionals College Students Non-IT Professionals Kids # Users 2 million 10 million 15 million 10 million Avg.000 Avg.000 50.myntra. spend per person $50/year $25/year $20/year $20/year Market Size $100 million $250 million $300 million $200 million Total $850 million Market Groups Segment Project teams Parties/Events Colleges Schools # Groups 0.www.000 Market Size $50 million $200 million $25 million $50 million Total $325 million Total Addressable Market $1175 million We expect that the overall market is growing 20% per year and will double in 4 years .500 $1.
com Differentiators Creative Content • Largest community of designers • Regional and local language content • Licensed content from entertainment industry Customer Experience • Great user experience at myntra.www.myntra.com site • Diverse range of top quality products • Outstanding customer service Scalable Operations • Back end automation for efficient operations • Integrated supplier inventory for low operations costs • Process innovations for scalable fulfillment .
www.com Value Proposition Individuals Large number of product categories for on-demand customization Designer community offering current. topical and relevant designs High quality products and excellent customer service Groups Get a private interface for branded merchandize of the organization Use our design services for creative designs for merchandize Individual personalization for group gifting .myntra.
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