Edition

II

NEWSLETTER
FINANCIAL
SERVICES
May, 2015

INSIDE
THIS
ISSUE

3-4

5-9

10

11

A Word from
the Managing
Director

Unravelling
the Venture
Capital Boom

Making the
Case for
Online
Education

Sourcing to
Placement: A
Case Study

Imarticus
Recommends:
Good Reads

A WORD

FROM OUR
MANAGING
DIRECTOR

Dear Reader,
2014-15 was a Rubicon moment for Imarticus Learning as we
set out to strengthen our product and regional portfolio as well
as our corporate relationships. Looking back, we have achieved
more than we aimed for. Our revenues have doubled, both on
the back of a thriving retail business, which saw a 120%
increase in our student base, as well as our Corporate Training
business which saw us build mutually beneficial relationships
with many of you. I thank you for continuing to believe in us, as
well as our exceptionally talented team of over 100
professionals who make it possible.
Human capital will only get you so far. This is where venture
capital comes in to ignite and sustain startups with a pipe
dream. You only have to scan the headlines of any newspaper to
see that venture capital is exploding in India whether it is Tiger
Global Managements $85 million dollar investment in
Delhivery, the logistics company or the mushrooming of ecommerce entrepreneurs and venture capital firms. But it takes
more than just a few deals to re-create Silicon Valley and I
explore the key cultural trends that are driving this renewed
confidence in Venture Capital.
The next notch on our goal post is Online Education and in this
issue, Amit Ratanpal tackles the growing space of Online
Education and e-learning. Globally, e-learning is a $56.2 billion
business and that figure is expected to grow exponentially to
$107 billion by 2015. With good reason: e-Learning offers cost
savings, flexibility and repeatability in training and is less
disruptive to corporate culture than classroom training. In this
issue, we explore the learning options you can now add to your
arsenal to train your employees. We are, of course, excited
about the launch of our first online program on Capital Markets
in June, 2015, with many more in the pipeline.
Apart from Training, Imarticus also provides a range of
Corporate Solutions designed to assist firms in meeting its
skillset requirements. A case study showcases how we put in
place the Sourcing to Placement model, a pioneering step in the
professional education space, to source, train and onboard
relationship managers at a leading Indian commercial bank.
We are very excited about what 2015-2016 will entail and, as
always, I look forward to hearing from you and hosting you at
our offices in Mumbai, Bangalore and Chennai. Please do get in
touch with us at corporaterelations@imarticus.com for any
requirements or suggestions to serve you better.
Regards
Nikhil Barshikar
Founder & Managing Director

UNRAVELLING
THE VENTURE
CAPITAL
BOOM
Nikhil Barshikar

After constantly being piped against China and

always losing, its nice to be ahead of them for a
change. Latest figures report that India has
outpaced China in the number of deals struck by
venture capital (VC) funds in the first quarter of
2015. 69 vs. 66 is small, but we havent had much
to write home about in a while.

VC
Scoreboard
India: 69
China: 66

We still lag behind in value, but raising over a billion dollars in three
consecutive quarters is no small feat its more than a 200% gain
over the previous year.
As I write this, the Sensex crashed 723 points on the back of sustained
FII outflows, lackluster industrial production numbers, worries about a
delayed monsoon, and an underperforming and straitjacketed
government. This is not due to Incredible India. So how has this come
about? Is it hype or is our newfound love for start-ups here to stay?
One big movement we have seen is the reach for scale. E-commerce
firms are no longer the niche players catering to your disposable
income. They want the share of your wallet that you spend on groceries
(Bigbasket.com) and basic furniture (Urbanladder, Fabfurnish). That
doesnt mean niche players dont exist but they need to ensure that the
market is big enough and the value proposition, solid.

AN
CREATING
ECOSYSTEM
THAT FOSTERS
INNOVATION

Much of the success of Silicon Valley has been attributed to its

ecosystem, a culture that fosters innovation. Its like a little village
where those who create, those who manage, and those who fund the
creative process live together in a community focused solely on
innovation. While we are yet to find our own little haven, some
characteristics of that ecosystem have undoubtedly crept in. What are
these characteristics?
THE PERMISSION TO FAIL:
The first and most important one is the
permission to fail. The natural state of the
start up is to die yet death is not looked down
upon and failure is not discouraged. Today a
number of Indian start-ups have failed. Ecommerce websites shut daily, opening up
again in six months time using a new avatar,
better and stronger using their prior
experience to build a stronger firm.

DID YOU KNOW?

Since 2010,

SnapDeal
changed its business
model 3 times to
become the retail
behemoth it is today.

RISK TAKING AND FOCUS ON GROWTH:

Pegging the
Bottom line
mentality:
FLIPKART
Pumping
Money In!

Indian business has for most part always cared

about the bottom line. Firms have repeatedly
forgone growth in sales for better margins but this
changed when Flipkart realized the only way an Ecommerce logistics company would ever get big
was to pump money in and gain value-conscious
customers and sales through deep discounting.

Valuations have a big role to play in this as well. Between 1997

and 2008, India was ripe for private equity growth capital and
firms invested in companies on the basis of profitability
multiples that would ensure an exit. VC firms care about scale
and the next round and the inevitable IPO that will make
millionaires. The multiples in vogue now are revenue multiples
and making losses just means youre willing to do what it takes
to be the last one standing.
MONEY:
Earlier entrepreneurs were poor and the salaries they offered
were poorer. Todays news reported that Delhivery has just
raised close to $85 million in a new round of funding led by
venture capital firm Tiger Global Management Llc. They brought
on board former FedEx Corp. executive Suraju Dutta and Bain
and Co.s Sandeep Barasia as managing directors. Working for a
start up doesnt mean foregoing your salary and owning a start
up doesnt mean you can pay peanuts; money buys talent.
Consequently MBA students from the best schools are making a
beeline for ecommerce.
Average
Startup
Salary:
16-20 Lacs

One in every nine students from the 2013-15

batch across 11 of India's top B-schools will
join an e-commerce firm or startup after they
graduate as compared to just one in 19
students in the 2012-14 batch. Salaries
offered by startups have increased two fold in
the last couple of years, with average salaries
in startups ranging from 16-20 lacs.

NETWORKING VS. CONTACT:

The era of pre-existing connections is coming to an end and
rightly so. There is no old boy school network here; theres just a
I have an idea network. Have something interesting to say? Well
then you just have to find the right person who wants to hear it
and, hopefully, pay you some money for it. Networks like Venture
Nursery, Mumbai Angels and the India Angels Network foster
conversation and have been created by venture capital firms,
entrepreneurs, dealmakers and founders to meet a growing need.
Todays India, be it Mumbai or Bangalore, is teeming with VC
firms from all over the world that are willing to bring in
substantial capital. All you need a great idea and the capacity to
execute!

Contd.

UNRAVELLING
THE VENTURE
CAPITAL BOOM

MULTIPLES
THE
IN VOGUE NOW
ARE REVENUE
MULTIPLES AND
MAKING LOSSES
JUST MEANS
YOURE WILLING
TO DO WHAT IT
TAKES TO BE
THE LAST ONE
STANDING.

GROWTH IN THE ONLINE EDUCATION MARKET

$51.5
Billion
(2016)
Growth Rate:

7.9%
(2012-2016)
Global
eLearning Market

With technological barriers reducing and

priorities shifting away from traditional
classroom training, online education or
eLearning has become an accepted
training medium across the world. There
seems to be universal agreement that the
worldwide E-Learning market will show
fast and significant growth over the next
three years.

The worldwide market for E-Learning is growing exponentially

from $35.6 billion in 2011 to an estimated $51.5 billion in 2016
at a five-year CAGR of around 7.9%1.
While the US and Europe dominate the eLearning consumption
landscape currently (at 70%), it is Asia-Pacific which is the
fastest growing market with eLearning revenues expected to
grow at an annual rate of 20%2.

Closer home, the eLearning industry in India was valued at $3.06

billion (Rs. 18.41 trillion) in 2010-20113. Increasing Internet
penetration, low-cost existing coverage and rising demand are
expected to help develop this market in the near future. Estimates
suggest that the Indian market is likely to grow at a CAGR of
17.4% for the period 2013-183 as it transforms itself into a
knowledge economy.
Corporate
Training:
$ 200 Bln
a Year

The Corporate-training market, among the

most cyclical within the education industry,
is a $200 billion a year industry, of which
$56.2 billion is attributed to eLearning4.
Since 1995, the percentage of US
corporations using eLearning has grown
from 4% to 77% in 20114.

We are already seeing a drastic shift in learning delivery in the

corporate training market. While roughly 45%5 of all corporate
training is still conducted using instructor led classroom training,
we can see a drastic increase in the incorporation of eLearning in
its various forms into the corporate training calendar.

MAKING THE
CASE FOR
ONLINE
EDUCATION
Amit Ratanpal
Founder and Managing
Director BlinC

Zenobia Sethna
L&D Manager Imarticus
Learning

WORLDWIDE
THE
MARKET FOR ELEARNING IS
GROWING
EXPONENTIALLY
FROM $35.6
BILLION IN 2011
TO AN
ESTIMATED $51.5
BILLION IN 2016

The business case for eLearning gets stronger in direct proportion

to the number of employees to be trained.

Contd.

MAKING THE
CASE FOR
ONLINE
EDUCATION
Source: Trainingmag.com

REASONS FOR GROWTH

General L&D budget constraints appear to be the main drivers of the
shift towards using eLearning. However, eLearning is not merely an
attractive proposition during an economic downturn. It is also an
efficient and cost-effective solution when employeesespecially
those in organizations with a geographically dispersed workforce
need to be brought up-to-speed quickly on relevant knowledge and
skills. When used right, eLearning can used to drive competitive
advantage, increase revenues and capitalize on new market
opportunities.
Self-paced eLearning allows learners to assimilate content at their
own speed often 20% to 50% faster than in a classroom.
Elearning also offers the benefits of flexibility (24/7 learning) and is
less disruptive to normal operations of a company than traditional
classroom trainings that block many hours of employees time at a
stretch.

EFFICIENT AND
COST-EFFECTIVE
SOLUTION WHEN
GEOGRAPHICALLY
DISPERSED
WORKFORCE
NEEDS TO BE
BROUGHT UP TO
SPEED .

ELearning also ensures consistency and

repeatability in training delivered, thereby
ensuring your learning objectives for your
trainees and the resultant outcomes are more
likely to be met. According to a report released
by IBM, companies who utilize e-Learning tools
and strategies have the potential to boost
productivity by up to 50%. For every $1 that
the company spends, it's estimated that they
can receive $30 worth of productivity6.

ROI Watch
$1 Spent on
eLearning
$30 worth of
productivity

Finally, we have shifts in demographics which impacts the way

training is delivered. The work force is now seeing the integration of
technologically savvy Generation Y or Millennials; who by 2025, will
make up 75% of the global workforce4. To cater to this target
audience (with Baby Boomers fast catching up Boomers are the
second highest users of the Internet7), we see a rise in demand for
interactive eLearning be it games, simulations, videos etc.
Other drivers of growth for e-learning in India include the large base
of English language speakers as well as the acute shortage of brickand-mortar educational institutions for higher education, which are
largely responsible for the massive uptake in online learning
through MOOCs (Massive Open Online Course) internationally.

Contd.

MAKING THE
CASE FOR
ONLINE
EDUCATION

ONLINE EDUCATION 2.0

Online training today has moved beyond traditional, self-paced
eLearning modules known as web based learning (WBTs) that
focused more on learner seat time the time spent by the learner
to read through the WBT. Today, seat time matters very little and
instead the focus is on proficiency based learning that delivers
performance on the job.
Online education today encompasses not only the traditional WBT
model, but also includes newer learning paradigms such as Flipped
Class Model. Due to changing demographics, we see a dramatic rise
in demand for video-based learning, gamification, simulations,
mobile learning, and social or collaborative learning.
FLIPPED CLASS MODEL:
Educators increasingly look to the Flipped Class Model to deliver
learning that is effective and cost-efficient. The Flipped Class Model
essentially reverses the traditional classroom setup and redefines
seat time. Knowledge is imparted as homework while class time is
utilized for application of knowledge learnt. Learners view short
video lectures or have access to lecture content at home before they
arrive in class; while class time is used for discussions, exercises
and projects. The results, as tested on a batch of high school
students, can be quite astonishing!

BY 2025,
TECHNOLOGICALLY
SAVVY
GENERATION Y
WILL MAKE UP
75% OF THE
GLOBAL
WORKFORCE.

LEARNING NUGGETS:
ELearning is not One size fits all Adult
learners need to be put in the drivers seat and
control what they learn and how they learn.
Accordingly,
trainings
need
to
have
personalized, competency-based learning paths
that give the learner much needed flexibility.
Shorter attention spans also mean learning is
compressed into bite-sized nuggets of shorter
duration for easier consumption.

One size
does not fit
all!

GAME BASED LEARNING:

Game-based training solutions have become popular in
organizations on both a stand-alone basis and as part of a blended
learning strategy. It is particularly useful to equip staff with
knowledge and skills related to functions such as human resources
management, marketing, customer relationship, etc.

VIDEO BASED LEARNING:

4500+ Video
Lessons on
Khan Academy

With broadband availability no

longer a constraint, videos are an
excellent way to impart learning in a
more dynamic fashion. Studies have
shown that video-based learning can
be a more effective medium than text
to enhance learner satisfaction and
motivation during the learning
process6.

BUSINESS SIMULATIONS:
Working professionals need learning that is immediate,
relevant, and contextual. Business simulations fill this gap by
focusing more on application of knowledge. Simulations are
complex training interventions that simulate, or mock up, real
business scenarios or issues to promote strategic thinking,
decision making, and problem solving. For instance, a role-play
sales encounter with customers is the perfect training ground
for your sales executives before they pitch to real clients.

Contd.

MAKING THE
CASE FOR
ONLINE
EDUCATION

A MIX OF ONLINE AND CLASSROOM TRAINING

The Best of
Both
Worlds

There is no doubt that online learning does

not always replace traditional classroom
training setups. But it is an excellent way to
complement your classroom training this is
where blended learning comes in.

Blended learning, also called Hybrid learning, mixes emerging

technologies with classroom or instructor-led training based on
whats most appropriate for particular content.

IS ALSO
THETHERE
REALIZATION

For example, a WBT can be used as a precursor to classroom

training for familiarization with subject matter, and also as a
refresher many months after the classroom training. A leadership
course might start with a self-paced eLearning module on
leadership basics with some instructor-led virtual classroom
sessions to discuss concepts, followed by a two-day classroom
session to practice leadership skill scenarios and get feedback.

THAT ONLINE
LEARNING DOES
NOT ALWAYS
REPLACE
TRADITIONAL
CLASSROOM
TRAINING SETUPS.

ONLINE EDUCATION FOR THE FINANCIAL SERVICES SECTOR

Since the arrival of e-learning in the mid-1990s, the majority of
Financial Services organizations have implemented some sort of elearning solution although the range of what this encompasses
varies widely. Many have simply implemented point solutions
while others have rolled out e-learning to multiple areas of the
organization.

The training requirements in the financial services sector are

particularly gruelling. Organizations must typically deal with
geographically dispersed staff and rapidly changing knowledge
requirements as well as heavy regulatory and legal compliance
obligations.
The current speed of change means that employees need to be
trained constantly in order for companies to avoid the dangers
of being out-thought and out-maneuvered by competitors.
When
Online is
Best?

Online learning, particularly as a stand-alone

learning strategy, works best when the training
need is to impart knowledge on processes or
standards or to disseminate information
widely and quickly.

Contd.

MAKING THE
CASE FOR
ONLINE
EDUCATION

AML/KYC, Legal Compliance and Regulations training are prime

candidates for WBT-based eLearning in the Financial Services
sector. Process-driven curriculum such as that of a Trade Life
Cycle would benefit from more complex interventions such as
Simulations.
On the other hand, some trainings are not suited for eLearning
and will require human intervention for example, Soft Skills
training or those requiring live demonstrations or group
interaction.
It is therefore vital that we evaluate the training need and the
target audience before zeroing in on the medium of training
delivery. An imperative question one needs to ask is,

Which is the correct mode of training to promote an

effective solution for a specific training requirement?
Knowing your available options and analyzing suitable
solutions for a learning need will help in delivering costeffective, goal-oriented and skill-enhancing learning solutions.

THE CURRENT
SPEED
OF CHANGE
MEANS THAT
EMPLOYEES NEED
TO BE TRAINED
CONSTANTLY IN
ORDER FOR
COMPANIES TO
AVOID BEING OUTTHOUGHT AND
OUT-MANEUVERED
BY COMPETITORS.

SOURCES:
1. Docebo report, 2014 2. Sh!ft Learning 3. Docebo report, 2014 4. Shift Learning 5. Trainingmag.com 6. eLearningindustry.com 7. Deloitte Millennial
Survey, 2014 8. Choi and Johnson, 2007; Shyu, 2000

Sourcing to Placement: A Case Study

BUSINESS
CASE:
EARLY 2014

THE
JOURNEY
BEGINS:
JUNE, 2014

The Business Need:

A leading retail bank wanted to hire skilled resources as Relationship
Managers across India in a sustainable and cost-effective manner, and
was looking for partners who will take ownership in sourcing, training
and onboarding fresh and experienced post-graduates.

Job Ready Model

SOURCE

PRESELECT

SELECT

TRAIN

HIRE

THE PARTNERSHIP BEGINS

The Relationship Manager Program was
launched in July, 2014 with a pilot batch of 65
candidates across Mumbai, Chennai &
Bangalore.
CURRICULUM
The program was a 2-month course that trained candidates on Retail
Banking, bank-specific processes and products, and Soft & Sales Skills
SOURCING CHANNELS:
RETAIL: Targeting freshers and experienced candidates
CAMPUS: Targeting freshers

100%

Students cleared
NISM Mutual Funds &
Depositories exam

99%

Students successfully
placed as relationship
managers at the bank

In light of the remarkable success of the first batch, we immediately

initiated sourcing for the second and third batch, which went live in
November14 and February15 respectively, resulting in 200+ candidates
successfully being sourced and placed in the bank.

A NEW
CHAPTER
NOV, 2014

SUMMARY:

CAMPUS BATCHES
After the success of the first 2 retail
batches, the bank reiterated their
confidence in us with the additional
responsibility of initiating the same
program at 3 select colleges.

THE JOURNEY CONTINUES:

MAY, 2015:
Sourcing for New Programs
on Retail Banking Sales and
Trade Finance

Sourced till date:

Trained till date:

Placed till date:

5000+

500+

450+

candidates

candidates

candidates

Imarticus Recommends: Good Reads

THE LION WAKES: A MODERN HISTORY OF HSBC
David Kynaston and Richard Roberts
Acclaimed historians Richard Roberts and David Kynaston chronicle HSBCs
humble origins, its struggles as well as its successes. Meticulously researched
and generously illustrated, this is a note-worthy read for anyone interested in
global financial history.

MORE MONEY THAN GOD:

HEDGE FUNDS AND THE MAKING OF A NEW ELITE
Sebastian Mallaby
Do hedge funds really make more money systematically? Do they need to be
regulated? Find answers in financial writer Sebastian Mallabys new book as
well as insights into key players like Soros and Druckenmiller. This book tells
the inside story of the hedge funds, from their origins to their role in the
financial crisis of 2007-09, offering the clearest, most readable and reasoned
discussions of the efficient-market theory and Soros' reflexivity.

HEAVEN'S BANKERS: INSIDE THE HIDDEN WORLD OF

ISLAMIC FINANCE
Harris Irfan
In this groundbreaking and globetrotting exploration, Harris Irfan, one of the
worlds leading Islamic finance bankers, debunks the myths of Islamic banking,
analyzes its greatest deals and looks to the future of a system that has
reprioritized the very nature of money itself.

INVEST WITH THE FED: MAXIMIZING PORTFOLIO

PERFORMANCE BY FOLLOWING FEDERAL RESERVE POLICY
Robert R. Johnson, Gerald R. Jensen, Luis Garcia-Feijoo
Invest with the Fed demystifies Federal Reserve policy, shows how different
investments are impacted by Fed policies, and provides a research-based
portfolio strategy for investors to consider Fed policies in their investment
strategies and thereby accurately forecast security market performance.

BECOMING STEVE JOBS: THE EVOLUTION OF A RECKLESS

UPSTART INTO A VISIONARY LEADER
Rick Tetzeli
How did a young man so reckless and arrogant that he was exiled from the
company he founded become the most visionary business leader of our time? If
reading Isaacsons official bio left you wanting more, this is the book to read.
An excellent expos on the growth and evolution of Steve Jobs, his triumphs,
his failings, his heart, and his vision.

CORPORATE OFFERINGS
AGILE HIRING
Ready Placements at No Cost
Key clients include majority of the large Investment Banks and Financial
Services firms in relevant domains

SOURCING TO PLACEMENT
2-3 month programs targeted towards onboarding specific
trained resources in large numbers
Key clients include Deutsche Bank, eClerx, Goldman Sachs, HSBC, Polaris,
HDFC Bank among others

TEMPING
6-9 month resource staffing in Investment Banking Operations
Key clients include Goldman Sachs and Morgan Stanley

CORPORATE TRAINING
2-10 day programs targeted towards employee skill development
trained resources in large numbers
Key clients include BNP Paribas, Deutsche Bank, CLSA, Northern Trust,
HSBC

BENEFITS TO YOU
SCALED & TRAINED RESOURCES
The collaboration between
Imarticus Learning and our clients
has created a highly skilled pool of
over 2000 job ready candidates
who have an in-depth
understanding of the product and
processes.

MOVING UP THE VALUE CHAIN

We are able to cater to recruitment needs
and provide our clients with highly skilled
resources for complex functions and
transitions. This scaled capability building
helps our clients to offshore functions in
India that were never considered possible
or viable before.

JUST IN TIME
Our solutions enable clients to
hire skilled resources just in
time with their business needs.
In addition, the training we
provide ensures that the
employees are productive
from day 1.

PARTNERING IN YOUR GROWTH

Our ability to comprehend their
requirements and implement appropriate
solutions means we are venturing into
niche areas such as bespoke learning
solutions where we can contribute to the
dynamic needs of our clients.

ABOUT IMARTICUS LEARNING

Imarticus Learning is formed to bridge the gap between Academia and the industry. The firm
provides a range of Corporate Solutions designed to assist firms in meeting their skillset
requirements.
Headquartered in Mumbai, Imarticus has delivery capabilities across India with dedicated
centres at Mumbai, Bangalore, Chennai, and satellite centres at Pune and Jaipur.

HIGHLIGHTS
Training and content delivery capability, across the areas of Investment
Banking, Finance & Treasury, Capital Markets Operations, Business
Analytics, Technology and Consulting.

Preferred sourcing and corporate training delivery

partner for leading Global Banks, Consulting, KPO,
Technology and Analytics firms.

HEAD OFFICE

such as instructor led training, e-

Imarticus Learning Pvt. Ltd.

5th floor, Raaj Chambers,
Old Nagardas Road, Andheri (E),
Mumbai - 400 069

learning, workshops and seminars for

Tel: 022-40792314 / 40792315

Range of customized delivery methods

optimal training effectiveness.

BANGALORE
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Tel: 080-45129914 / 45129924
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CHENNAI
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Chennai 600 029

EMAIL: corporaterelations@imarticus.com
WEBSITE: www.imarticus.org

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