thank you everyone for coming I was

thinking back this morning to our first

selfie day and I think Rebecca you've

come to that one at that time and things

have evolved quite a bit since then I

think that time we were about 15 of us

in our upstairs cafe in the office and

now we're about I think 30 people today

a few more coming in during the day so

uh it's just it's it's heartening it's

nice and is quite honestly all because

of the entrepreneurs that we work with

and so today is really gonna be about

them and them telling the stories about

what they've done and how they've been

evolving and building their businesses

and we've just been fortunate to work

with some really interesting companies

and people I'm gonna start by by talking

about supermodels because you know

that's what we do we talk about risky

items here but it is in fact supermodels

the the crux of what we invest in is

really interesting models and I think

those models are what really define why

we're able to find businesses and do

things that are disruptive start by just

setting some context around India I

think we've all generally accept the

idea that we're a large market I think

that's one of the larger reasons why

people come here and are interested in

it our growth is consumption led and I

think that's important because I think

that's been historically one of the

things that everyone felt would make

sure that India didn't go through dips

due to FDI and dips you to change of

investment philosophy that's true or not

true and I'm not making conclusions out

of these right now I'm just want to set

the context correctly we have a low per

capita GDP now this has lots of

implications has implications for ad

revenue has implications for sectors and

how Nisha's can grow and I think

believing that this $1500 we'll go to

8,000 anytime soon is a fallacy we have

to start to accept this and actually

accepting this is really good because

there are very interesting opportunities

that emerge when you start to think

about the market in this context we've

always talked about the fact that India

is fragmented it's a theme that exists

throughout our the last four years and

what we've thought about it's gonna get

more fragment

as we think about markets and segments

to go after in the next five years we'll

have a hundred and twenty cities with

over a million people in population

later today when actually SID we'll be

talking about Melora we'll talk about

the fact that the the idea of Tier one

is is actually a bit of a misnomer when

you look at it Metro's itself are about

53 cities in this country and those

metros are places that representation

the u.s. to put it in perspective has 11

cities with over a million people so

we're gonna have extremely extremely

large number of highly dense cities

where rental costs are gonna be high and

really tech enabled opportunities are

gonna be the way of how we're gonna have

to address these markets which brings me

detect we are we read a lot about

millennial Jenny India is effectively a

Gen Z country in the sense that many

people are gonna come into consumption

in a mobile world they're not coming in

having gone to the mall they're not

coming in used to buying brands that are

scaled up they're coming in not knowing

any different but to buy things actually

on their phone and so as a result we've

seen a massive jump over the last year

just in that enablement we were talking

earlier just now about 5g and the

implication that's gonna have I think

all of these are opportunities that

you're not gonna have to battle

incumbency on so as a result you're

gonna be in a market that's gonna move

immediately to a mobile world and that's

happening with data prices dropping

drastically that data price drop has

resulted in people spending 200 minutes

a day on average on their phone so

spending 3 hours a day and I think 50%

of that time people are spending on

social networking which is insane and so

these are behavior changes that are

going to define a large part of how

people are gonna actually have to

consider their businesses in the future

and actually are gonna consider tuna

tease for us to really think about how

brands are gonna be built we are the

last major frontier

35 percent is online this is nowhere

near the levels that you've seen in the

US and definitely not even the levels

seen in China yet so we have a long way

to go

I think Africa is probably the only

other market left beyond this but that's

even more fragmented as it were to be so

as a result I think we have a big

opportunity on that side and and we're

just getting started with all of this I

think the analogy for India has always

been it's an airplane on the runway

waiting to take off

I think the trends that we're starting

to see in e-commerce the numbers that

you'll hear from our companies later

today will show you that some of this is

actually happening the numbers and the

scale are setting in but it's still

nowhere near having taken off there's a

statement that data is the new oil we've

seen this with reliance getting into

data in a big way we already make up 22%

of the Internet I mean that's crazy I

think one day whatsapp had said that

Indians were we're flooding the their

system with good morning messages I'm

not saying we're using the Internet and

the smartest way possible but we're

definitely using the Internet which is a

start

so if data is going to be the new oil we

are gonna create a ton of it and so as a

result the opportunities to really think

about how businesses can work using that

data is where the differentiation is

gonna lie and I think that that's where

we focus our energy within our portfolio

as well not doing the same old thing

anybody can put a billboard up anybody

can buy an ad in a newspaper how are we

gonna use the data of usage of what

people are doing on our systems to be

more intelligent what's happening in

aggregate to build the right businesses

now the government's a hard one we uh we

put this together late last night and

this morning again there's more news and

I think things keep changing so but

putting aside the noise for a second the

general direction I would say is

positive we are improving on the ease of

business index we have a government who

has helped on the PR side I think four

or five years ago when when I would go

out to talk to people about it I was

having to sell a lot of India and I

think that you know when you're talking

to investors about the market you're

either selling India you're selling

venture or you're selling your fund I

think for a long time I was selling

India and if I'm there there's a problem

and I think Modi's done a good job at

least of reinvigorating the focus on

tech and done a lot

within that area of talking about it

start up India as an initiative was good

all of this said there's still a lot of

challenges and I think those are

realities of India I was talking to

someone yesterday they're saying but why

does it have to be this way I mean I

think you have to give up that view when

you're when you're working here it is

this way and we kind of work with it

digital money has come out come about in

a significant way now again there are

varying views as to whether this has

been done the right way or not but it's

moving and it's definitely moving in a

direction and the government is playing

an active role in it which again can be

debated as to whether or not that's a

good idea or a bad idea but they're

definitely involved in it

UPEI transactions are significantly up

both in terms of volume and value and if

you look at that 312 million

transactions in August

compared to after 20 years card

transactions are 420 million so UPEI is

definitely shifting it and by the way

this on the consumer side has a big

impact for businesses that are payment

processors and we're seeing them start

to focus their attention on the b2b side

which is a very interesting shift as

well wallets and this is the problem or

the challenge or the opportunity in

India if you were sitting in September

or July of 2017 the wallet world was a

great world wallets were gonna be

dominant everyone needed a wallet olá

had a wallet book my show had a wallet

flip card out a wallet clear trip out a

wallet wallets were the answer to the

world go forward and this is September

to March

this isn't even a full year UPI

transactions dominated it wiped it out

change the entire landscape so you have

to to be cognizant of these things and

decide which areas are gonna get into

and decide what government role is going

to end up playing within that on the

investment side things are good they're

not great they're good it's continued to

grow held steady I would say more than

anything else

global guys are paying attention some

good some bad I think we've seen in the

case of for lenko the question always

was what happens when IKEA comes like

yes come it's great I mean I Kia's

premise has always been well designed

cost-effective furniture for Legos

premise has been well-designed

cost-effective furniture with a

different model and I think that model

has made all the difference

but I think the fact that people are

coming in the fact that people are

taking notice is only going to be

positive for us many of you've seen our

earlier presentations where we talked

about mr. fat bug mr. fat bug is our

response to bat and Fang mr. fat bug is

basically the acronym for the fact that

global companies will be acquirers of

our businesses here and I think that's

gonna be the case and they're already

getting very involved across the board

you saw out with Flipkart mr. fat bug

didn't have a W I have to figure out how

to fit that in but this was one we've

seen it with domestic players this is

other Thea and the team at imbibe and

this has probably been one of the most

heartening occurrences for us we're a

company that has been an investment of

ours which is pure tech this is a pure

tech business where we took a decision

to go long on the idea of investing in a

platform and continuing at a time when

it was questionable as to what the

monetization would look like to have

another company that's been a

traditional business in in a world of

real assets look at this and say we get

it we get that the technology is the

answer to solving education other thing

is now leading education across geo for

them it's a fantastic opportunity I mean

we see what's happening with Baidu I

think again today they raised another

amount of money at another ridiculous

valuation I think these guys are gonna

are gonna give everybody a massive run

for their money across the board and I

think education can significantly change

as a result of this this partnership

here I think the other reality of the

market is sentiments ways by what

happens up here these are your large

guys your people raising two billion one

hundred million five hundred million

seemingly every two weeks but while

that's happening the rest of the market

has kind of stayed in a range and I

think that's important to recognize and

I think often times if you come from the

outside or you don't follow this

industry on a regular basis you get

swayed by what happens everyone's in

Flipkart one's out of the car everyone's

dead no everyone's out of oil what sucks

it's working it's not it doesn't matter

I mean again our portfolio companies

give us the conviction here because

we've been seeing their operating

numbers we've been seeing how their

products has developed we've been seeing

customer adoption

we're confident this stuff is working

and the rest of the market is fine this

then brings me just thinking about the

consumer ultimately look we are a

consumer focused venture fund and for us

as much as I want to talk about the

macro and believe that that's gonna

dictate how we think about it it's

really consumer trends that drive it

this happened this year a guy at the

foothills of the Himalayas finally was

able to buy a fridge because not because

he didn't want a fridge before it

practicality was he just couldn't get

one and so for him at two dollars a

month for the Internet

he's now suddenly plugged into commerce

and he has the ability that brings me

back to that slide earlier of a hundred

and twenty cities with over a million

people in population there are I think

about 600,000 PIN codes in general where

consumption is going to take place and

again when we will talk later about what

we've seen in the case of jewelry and

the fact that adoption is happening in

all of these areas the railways again

coming to that lower end of the segment

seventy percent of their tickets are now

booked online they have always been and

I remember when I came in 2005 the

biggest e-commerce site in Asia was the

IRCTC the Indian Railways today they may

not be the biggest but they're

definitely propagating this as a way in

which they want to do things renting I

mean this is something that when we

started off we had to get our heads

around as well the idea of access over

ownership I think that in general I have

two young kids my son buying stuff is

not important to him he's just not

interested anymore I think this idea of

renting is not just something that's

going to happen in one segment or or the

idea of access over ownership it's

something that's happening across the

board you're seeing this everywhere

never need to buy the boom in renting

everything from furniture to vehicles

subscription is a way of life this is

not just in India you're seeing this in

the US excuse me experiences are a big

part of where consumers are going as

well this is a tie-up between Saregama

and Harman Kardon they put out a box

which again I'll tell you I have a hard

time understanding this and

a music lover but they put out a box

preloaded with content and they give you

an app and that app then lets you stream

stuff through the box so it's a it's

basically a speaker but the speaker

comes pre-loaded with hindi tamil

bengali malayalam and they've sold six a

million pieces in 16 months and it's

doing really well now the reason is

apparently people put this box in their

house in the middle and everybody listen

music together so it's a connected

speaker with old content and they've

just created it around the idea of an

experience and it's caught on really

well I think premium for a design and

premium for quality is a reality you

know there's always this statement no no

India doesn't care about that India

wants chaos India doesn't want

high-quality jugaad was this thought

that you know we'll just cobble it

together and that works here I think

that's dead as an idea focus on great

quality product focus on design and

that's applying everywhere here I think

50% of our sales come from non metros

and the average selling price is equal

if not greater to what we're seeing in

metros for a jewelry business so it's

clear consumers want good product

consumers want convenience as well

Ida fresh is taken what was a very

complicated time intensive task of

making idli batter and said we'll just

centralize this we'll scale it up and

we'll do it for you in a really

convenient way pre packaging it and this

is really interesting because vadas for

people we're not from India fried donut

basically what they did is they created

the packaging such that you just squeeze

it in the oil and this the hole is right

there in the middle so you don't have to

worry about it

thoughtfulness around packaging has

actually enabled them now to get to a

point where we believe they're doing

about a hundred million in revenue they

are very also conscious and these guys

as well as many of the other companies

we're talking about this idea of

wellness and products not having

chemicals and being natural

this is a trend that's coming across a

lot of areas and people are willing to

pay for it this is just an example Tod

assault iodized versus Tod assault light

honestly I don't know the difference

between the two but this is healthier

for you and people are willing to pay a

premium for it and people are willing to

pay a premium across the board so again

this idea that we don't care and I

actually think it comes from the fact

that people are exposed to content right

now like they never have been before

all those people online twenty-two

percent of the world's traffic coming

here they're going to YouTube they're

learning about these ideas they're

exposed to the same concepts that the

West has so therefore the trends that

are happening in the West are happening

concurrently here as well and so that

really shows us that the market is is

looking for new areas natural as well

this was really interesting for us Wow

as a shaman
I'm saying wow wow is the brand Wow is

the shampoo brand actually is one of the

largest selling consumer product brands

on Amazon their sales have jumped

drastically and they're primarily an

online product and so that's their

channel that they sell chemical free

brand of cosmetics this is more

expensive than whatever Unilever is

selling out there in the market wellness

is a big part of where things are going

if you look at it raw created the

category of cold-pressed juices they

forced and pushed Nature's basket as

well into that category also juices in

general in India were a very interesting

market never really grew grew in a

branded way the organised players

whether it's da boar or Tropicana aren't

very big at all here and I think what

these guys have tapped into is this idea

that you want that fresh juice and you

want it in a way that is actually

accessible and convenient again that

same notion hrx

a brand again focused on wellness bought

by Myntra recently content is another

big part of what consumers are chasing

and looking for Noah which is a company

you'll hear from later today as well

have built a business by addressing a

topic that people have avoided feminine

care products sanitary pads if you look

at how whisper and stay free market they

avoid the entire issue around what is

actually happening during that that time

of the month for a woman and what are

the challenges and issues they're facing

these guys took it head-on they create

Facebook AMA sessions where they bring

Gynaecologists in there we would give

people the opportunity to talk about it

understand what's happening and that's

resulted in massive following in six

months they've grown their Instagram

following to 22,000 people versus the

two largest brands were sitting well

below that content is going to be a big

part of how we're able to build brands

moving forward so Google had a session

and college eath was is the CTO at NDTV

he was there and he tweeted after it

that India is the only country in the

world where YouTube has more unique

visitors in Google we are a video first

country and video is going to be a big

part of it video shares about 75% of our

mobile traffic and we're giving the

world a run for its money for anybody

kind of following the video world this

is the biggest battle going on right now

and if we had a live ticker here I would

show you what the numbers were changing

on but t-series a music brand is

challenging a gaming company on global

traffic to see who has the largest

number of subscribers they were at 30

million at the beginning of the year

it's 73 million now and I think we're

adding 141 thousand daily so these are

people going on and quite honestly

they're going on as a free way to listen

to music and ask quite compelling and

suddenly you start to say on one side

India as a country is building a massive

user base or as a diaspora that's say

building a massive user base or on music

the rest of the world is building it

around watching someone play a video

game I don't know what that means but

it's clearly different and it's clearly

something that as we think about what's

happening here it's something we'll have

to continue to watch 95% of this video

consumption is in regional languages so

again that fragmentation comes into play

here as well because of the regional

language voice becomes a very big part

of how navigation will take place QWERTY

keyboards are not necessarily intuitive

for every other dialect and so as a

result voice search continues to grow as

a big part of what we see in all of this

leveraging that data personalization

really becomes a big part of where this

information these products can go it's

not enough to just say I will bring you

a platform where you can access content

again if we're taking this data and this

is what imbibed it and I've built its

business around the idea of

understanding the user extremely well to

then give them personalized service to

be able to navigate and do better on the

exam this is something that a lecture

hall like this could never do you'd

never talk to each person individually

and say this is what you need this is

what you need this is what you need a

system actually does this and I think

that's a big part of what consumers will

continue to want and pay for so we kind

of talked about where the market is at a

high level we've talked about some of

the consumer trends that we see

happening well I want to get to now is

really the cost structure advantages

that these things bring about and what

we really look for as we think about

businesses so rebel Foods which many of

you know as fossils from earlier

basically change the entire cost

structure of the qsr our business and I

think that when we think about markets

and we think about opportunities these

are what I mean by cost structures I'm

being very specific here because I want

to go through explaining why we say yes

or no to certain opportunities and what

we're really hoping to find in them in

the traditional restaurant world one

kitchen meant one brand that one kitchen

one brand meant that you spent a lot of

time and money trying to figure out

where to locate it trying to figure out

what product would sell and from that

you would either be right or wrong

actually as a matter of fact 65% of

restaurants shut within one year and 85

percent shut within five years so it's a

model that becomes very difficult to

continue to scale up and very expensive

as a result what REBOL did was they said

all right I've got a kitchen no one's

walking into it your problem with going

to McDonald's and asking for Chinese

food is you don't really believe

McDonald's will make good Chinese food

so you're never gonna do it so as much

as McDonald's wants to get into the

salad business they have a hurdle to

overcome for rebel nobody's walking into

our kitchen as a result we can make

whatever we want from that kitchen and

that's exactly what the team did they

went into biryani

they went into Chinese food they went

into Pizza they went to continental

cuisine and what that allowed us to do

was overtime costs run like this at the

rate of inflation

so if costs are gonna continue to go up

your raw materials your labor a business

in the restaurant space usually takes an

s-curve it takes a while to build it

flattens and then it goes up and then it

flattens again sorry it rises and then

it flattens again by having one

infrastructure and adding multiple

brands you're riding multiple s-curves

this means this can go in perpetuity

JDBC designed the business to last for

300 years none of us will know whether

what that works or not but I'm hopeful

that it will be the case it's played out

he's proven it behrooz in a span of 18

months with under 2 million in spend has

grown to about an 18 million annualized

revenue business that 2 million is

marketing spend zero capex zero risk

that's a structural cost advantage

that's something no existing qsr our

business can do and that's something

that gives us a ton of value going

forward we're taking that same idea and

he just announced I think two three days

ago the the the launch pad and so the

idea is people have food missions and

the food missions really are around

either family and friends and colleagues

single serve meals either value or

indulgence and we're not gonna create

all of them and this is really now

platform izing the business it launched

a fifteen million dollar fund to

actually fund entrepreneurs to do this

and I think that's another massive

change and what the cost structure is

going to be for new businesses in this

industry I talked a little bit about

personalization before as well what we

did here in in Bob's case and again a

structural advantage that we looked at

we were able to take our technology

platform ingest data be very good at

mapping this to different concepts so if

you are learning physics it's not enough

to tell you do more physics questions

and you'll do better when you get

question two fourteen and twenty three

wrong we tell you that you messed up in

the concept of force or acceleration I

think that was key to be able to create

a system that could automatically ingest

that

content tag it and then give people

question papers and then direct them in

the way that made sense a traditional

business a traditional tuition program

has businesses with limited reach they

have high rental costs to set up and we

have a shortfall of talent in terms of

teachers actually talent in many areas

healthcare teachers doctors all of this

are problems that exist platforms change

that game entirely and that's what we

were able to do here by personalizing

and leveraging AI we're actually able to

create a system that was free of those

similar in concept is Flint oh and the

idea that we have a twenty million kids

born every year I just talked about the

teacher deficit that exists people set

up preschools and their living rooms and

call people home and say we'll run a

preschool now that's fine and that's a

good way to occupy your child but

ultimately people are now recognizing

again with the advent of content and

information the importance of early

learning so as that becomes more

prevalent they're gonna search for

schooling that's actually of a high

quality with the Flint dough platform

what started with the basic box

delivered to somebody at home to engage

the child more effectively than random

toys or iPads or devices moved into a

system that actually allows us to put a

school up anywhere we've created Flint

Oh class as a product this brings again

the same structural advantage we're

giving you a structured curriculum at

low cost delivered to you monthly for

each of the students in your in your in

your living room so if it were or under

a tree as as I think Erin is talked

about here that's a massive change in

the cost structure of what it takes to

actually set up a preschool room

fundamentally made information available

and change the cost of selling a car a a

used car purchase process typically

involves lots of difficult steps along

the way many people call you if you're

selling a car you're trying to figure

out who's real who's not real you then

have a sub dealer network because as a

dealer you actually don't have enough

working capital to keep rotating cars so

you're trying to move the car as fast as

possible

you'll call a friend you'll tell

look if you do it I'll give you a

commission you'll put ads in various

sites that are driven just to create

awareness all of this adds up to about

10 percent of the value of the vehicle

and that 10 percent the value of the

vehicle doesn't come also by the way

comes with a massive time sink which is

not calculated in that what the room

said is I'm gonna change the equation

here I'm gonna create a platform that

allows all the information to exists we

provide you the history of the vehicle

I'm gonna provide you the state of the

vehicle with with mechanics that

actually certify it

I'm gonna give you pricing in the market

so that you know what's happening what

that does is allows this one seller and

one buyer to automatically connect on

one platform and have a cost of only two

percent of the vehicle now we can take

this up a little bit here and there but

ultimately if I look at it 10 percent

versus two percent massive structural

change in the way the industry works I

alluded to this before with Melora but

it's one of those that I think has

really surprised us and and and opened

us up to a lot of other areas if you

look at it the Nishka has a business

this is their model walk into a physical

jeweler sit there look at the item

decide what you like buy it and leave

this is massive working capital this is

a massive impediment to scaling into

geographies they are in a hundred and

twenty seven cities after about 25 years

of operation we have already shipped to

600 locations in the country

we have zero inventory what that means

is we can iterate and roll out more

designs on a regular basis much faster

than anybody else and as I talk about

fashion in a minute you'll understand

the importance of that we have on 0.3%

of the revenue greater margins than

finished

that's insane we've changed the entire

dynamic of how jewelry can be thought

about it is now a fashion product not an

investment product where you think about

making charges as how you look at it so

that's a shift in the cost structure of

the industry so that's a few examples

from from our world I think what I

wanted to spend some time on today as

well as talking about the future and

some of the other areas that we're

thinking about and how we're thinking

and looking for these cost advantages

here I'll tell you upfront we don't have

answers in many of these areas our

intention today is just to lay out our

thinking and over the course of the day

we'd be very interested in talking to

you guys about what you think and what

you've seen in other markets as well in

FMCG as I mentioned earlier product can

be a major point of innovation and

change in cost structure thinking about

customer acquisition differently is

another business model shift that I

think can yield a cost advantage and

distribution and again with new o

you'll hear later today about how going

direct is a big part of what they

believe can change how the market looks

at that product in this I think there

are two broad things you can think about

you can either look at creating a new

category so what raw did with

cold-pressed juices was really explore

how cold-pressed juices could come about

they talk about their business and

they'd say that they didn't have to to

create the category they had to create

the shelf

they had to physically find a shelf and

actually in their case they actually

brought the shelf to the shops and they

did that or you can revitalize a

category and the the most famous global

example is Dollar Shave Club changing

the entire conversation from one of

talking about are you buying a blade

with 15 more blades on it and is it

gonna do backflips and this and that or

do you want a product that works at a

price that's good and change the entire

conversation of that I think that the

reason why this is interesting and

compelling time to look at it is there's

this idea of unscaled

and the notion that again I mentioned

earlier data personalization are gonna

drive the ability for regional brands to

actually emerge and regional products to

actually become very compelling so if

you look at this this is the the growth

in small companies versus the big FMCG

businesses and so regional brands have

seen a higher growth over the last

couple years as opposed to are actually

out over the last years as opposed to

the national brands this is not just an

India phenomenon this is happening in

the US as well so if you look at a small

FMCG and I appreciate this is hard to

see but in general they about 57% of it

is dropped to about 55%

so you're seeing a shift and you're

seeing smaller brands extra small brands

and midsize brands start to grow and

take more share away that's gonna happen

here as well just because it's possible

it's possible and in India what people

want in South Bombay is different from

what people want in West Palm Bay is

different when people want in North Palm

Bay that in and of itself should lead

you to believe that what people want

North India and South India are

definitely gonna be different and if you

have the platform you have the

production capability and you have the

communication capacity to actually

address those needs differentially I

think that's gonna be what people want

and as a result it's going to move away

from this idea of centralized one brand

doing all there will be efficiencies

that will be gained from centralizing

certain functions but it may not

necessarily be in creating one brand

that addresses everything the other

reason as investors this is interesting

for us is global M&A in consumer goods

is at an all-time high people need to

buy more stuff they realize that

internally these big companies are not

figuring it out themselves

it's gonna happen here as well in India

you've seen it with some of the

investments that have already taken

place whether it's americo in the Bombay

shaming company was this sari weirdo

beardo sorry Wipro with Astra Emami with

the man company Colgate did the Bombay

shaving company these are all happening

they're realizing that tapping into

these companies is the only way they'll

be able to figure out how to tap into

these niches and as these niches get

bigger it's only going to become more

attractive for them to do that content

is another area where we spend a lot of

time and think a lot about what's going

on so 10 percent of India speaks English

we are in that 10 percent here 175

million english-language Internet users

235 4 million regional language users

this is going to be a big part of how we

need to think about businesses how are

we gonna address this this segment of

people that are not communicating the

way we are from Google data they're

telling us that 4 and 1/2 x growth and

Hindi searches 1.8 X growth and other

language searches these are the topics

that are growing in these areas

government automobiles Internet services

it's interesting I mean I think we're

seeing an array of topics I think the

more

take the bigger takeaway from all this

is that local language is growing in a

big way and I think businesses need to

think about how they're gonna

communicate their states where this is

happening are again states that don't

have a large Metro so now that whole

idea that India is all about these big

metros and that's where we're gonna sell

stuff isn't necessarily gonna be the

case more and more people are getting

online in places where there aren't

actually big cities where you're gonna

be able to just set up shop and sell a

product how are you gonna reach them how

are you gonna sell product to them again

technology enables solutions become

interesting regional language users

again looking at it from KPMG and

Google's predict projections here say

online news detailing these are all

gonna happen in this mix across the

board now these are projections but I

think indicative ly it shows you that

ecommerce in in regional languages is

gonna be a big part of what's gonna

happen moving ahead amazon recently

launched a hindi website and they were

very clear that 8 out of 10 customers

prefer to shop in a language other than

english they said half of the queries

that came in to their customer service

department came in a language other than

English so again we can keep looking at

this and saying alright we're gonna

build everything in this way build

everything for India generically but in

fact I think once you regionalised you

end up in a situation where you can do a

lot more and I think that

regionalization is not just a google

translate on your website it has to be

something more that considers in fact

what these customers want differentially

and I think companies are buying into

this and investors are seeing this 300

million dollars has been invested so far

in businesses focused on local content

now if I go back and talk a little bit

about the per capita GDP in India at

about 1700 and per capita ad spends in

India are really low and it makes sense

if you're not able to buy a lot what am

I gonna spend a lot of money advertising

to you so as a result ad models become a

little bit challenging in this context

and as a result when we look at all this

sorry I'll come back to that point

saying actually the US market captured

urban India and actually what we were

saying here as well was that the Chinese

have actually stepped into rural India

and actually when you look and you read

about this their effort in these

Regions has been insane they go into the

rural markets they spend a lot of time

there tik-tok I think there are 100

million users now and they're adding a

massive number in India on a regular

basis

sorry 501 so the Chinese companies are

among the largest downloaded apps in the

Google Play Store so when we look at

this it's not a simple matter of

translating a product from one side to

the other when you think about regional

languages these consumers are not

necessarily used to buying online or

used to consuming necessarily any of

these services online it's gonna require

hand-holding it's gonna require a

different interface we believe it's

gonna require a thought on how behavior

works here people use Facebook here to

discover not to share and they use

whatsapp to share not to communicate so

when you think about these nuances you

then have to think about how will

businesses take advantage of that and

actually consider what you will do

regionally it's not so simple as to take

a malaria website and translate into

Gujarati and say now people will buy

there's an entirely different process

there now the models that could emerge

here because again if the ad dollars

don't exist and if content businesses

all content business historically have

been ad driven their media companies

then really the question becomes is it

gonna be microtransactions sachets

Goderich popularized this years back

with seccion shampoos and realizing that

people don't want to buy the full bottle

they want to buy the 2 rupee bottle and

so as a result what can you do with

microtransactions and I really believe

that's where your share chats your bite

dances are gonna have to go in a market

like India is really look at thinking

about are people gonna buy micro

products within that the other which

haiku Jam is doing a very interesting

job of now is providing insights all

that data tells us a ton about users and

and later on through will talk to you a

little bit about what we've actually

learned from it this was they asked

Millennials about used about car

ownership and the the the thoughts that

came back were quite interesting because

on one side straightforward dream

aspiration all of that seemed to make

sense but on the other side people were

worried about pollution noise ooh BRR

uber was the

most referred brand when you talked

about car ownership so if you're a brand

thinking about how to reach consumers

how do you leverage this content and

insight to actually think about what to

do moving forward FinTech is I think

probably one of the most sought-after

and talked-about spaces around there as

we've thought about FinTech on the

consumer side we've kind of broken it up

into four sections payments consumer

finance insurance and asset management

and there are businesses around all of

these and and trust me we've broken our

head trying to understand what to do in

this area and talk to lots of people I

think in general as we talk about it and

think about it all roads seem to come

back to lending so no matter what you do

you end up back in the world of saying

how do I give this guy money and make a

spread on that in some way shape or form

225 companies in the lending space as of

2017 it's the second most funded segment

in FinTech in general financial services

businesses are built around these three

areas I acquire a customer I underwrite

risk to them and I have to collect money

if that's essentially what's happening

anybody was a disproportionate advantage

in one of these three areas is better

positioned to win we're struggling right

now to understand how he is start up on

its own coming into this has an

advantage in any of these areas so as a

result and we really start to think is

FinTech really a misnomer is it really

just financial services using technology

and if that's the case ultimately is

FinTech really a feature and again

someone beat us to saying it on Twitter

but I believe this is right and the idea

that anybody who has a user base is

already in a better position to actually

address the market they have customer

acquisition sorted they more likely than

not have better data and they have the a

better ability to collect and I think

you're beginning to see this we looked

at insurance for example for a while and

you're beginning to see the if the

ability to underwrite at a micro level

comes about then the ability for people

on their own to provide that insurance

becomes readily available they have the

capital if I'm buying a Tesla and Tesla

is gonna charge me an extra little

amount for the insurance

why do I need to go to Bajaj or Allstate

or whoever it is if I'm buying a Apple

watch and it's monitoring my heart rate

and it knows my my my perspiration

levels it is in a better position to

underwrite my health insurance than any

other third-party will with any amount

of data

similarly droom with all the information

that we have about the value of the

vehicles the estate of the vehicle the

actual history of the vehicle credit is

something we're gonna be in a fantastic

position to enable and I think that 2%

that we talked about spread that we

we're making let's say today on it can

grow massively because of the data that

we have and the ability to provide

credit why is any other Bank gonna be in

any better position than us to actually

enable that for a consumer for Lenko

again access over ownership is nothing

more than financing for a customer I'm

giving you a product that you're not

getting in any other way by working with

us and us taking on that burden it

creates challenges for the business on

this side but those challenges that we

have our massive moats the amount of

debt that we've had to figure out how to

raise for that business the sources that

we've had to go to to find them I don't

think anybody can wake up in the morning

and do that which is great for us now

it's been a hard road I'm sure Ajith

will talk to you about the road traveled

there but ultimately it's a benefit for

the consumer because it's financing in a

very different way so it brings me to

fashion and and really what we see

happening in apparel there so when we

think about it finding sustainable

businesses and imperil in a fast fashion

world is really hard it's a 2 trillion

dollar apparel market out there and I

think the largest company Inditex is at

about 20 billion so building large

sustained businesses in fashion is

difficult and it's wasteful quite

honestly and when you have a market and

a segment where there's a ton of waste

going on manufacturing of low-cost

low-quality apparel seems to be the

direction someone else was telling me

Uniqlo is great I buy it and I throw it

out after five wares because that's the

model if you're moving into products

like that and that's the approach I

think that's gonna be really difficult

moving ahead

questionable working conditions all of

these are our challenges of the market

now there's different

Roach's - it ever Lane in the US has

taken this idea I'm gonna make it

transparent I'm gonna tell you what

you're getting and you're gonna pay a

premium for that you're gonna be willing

to pay because you appreciate what

you're getting here and you appreciate

the idea that you are you're you're

transforming the the method of

purchasing process here doodlage is a

company we've met here which again very

interesting because what they're doing

is they're saying taking the scraps of

the textile industry and making a

parallel of it and making really

fashionable product and right now

they're selling at a premium we're not

yet convinced that this is a structural

advantage it's interesting it's

compelling but tomorrow when the fabrics

change or when waste suddenly becomes

valuable what will happen to their

structural advantages if this were it so

it's a thought and it's an area where

we're evaluating won't be sure companies

a company you're here for in a bit today

as well they're really approaching this

idea of mass customization how do I

change the the very nature of how you

think about a product that you're buying

a shirt right now they've decided that

if I can distribute my manufacturing

using a technology platform and have

multiple tailors make the product to my

specifications if I can acquire

customers over here and know a lot about

them not just the fact that they buy a

shirt or that they buy a pad but I know

their measurements I know in detail

exactly how they fit and what they're

looking at I can retain them more

effectively and I can scale my

manufacturing this is a mix of online

and offline and again you'll hear from

them the the how that model has worked

and how they're actually scaling it in a

profitable way brings back a lot of

similarities to what I talked about with

rebel and how they've been able to grow

a business finally I think data again is

gonna play a role in fashion and I guess

it's scary when you consider the idea

that based on what you watch on Netflix

they designed the shows so Kevin Spacey

starring in house of cards was a direct

correlation for who they felt was the

right person to play in that role there

I'm sure there are more actors that have

come in as a result of the data telling

them what to program on what show to

create fashion is moving their Flipkart

says that they have a 20 million dollar

brand

in Mora rapido that has basically been

designed entirely based on the data of

what people are buying on their system

so it's interesting I I believe that

over time that as a platform and data

source can be a structural advantage in

how we think about fashion so that's our

intro to the market and overview and

some of where our thinking is just does

it take away this guy the story behind

it he had to climb a tree to find a

signal and so that's what he's up to up

there but I think in general look it's

been exciting for years the the stories

of our entrepreneurs best summarized our

learnings and will give you a deeper

sense of where we see things going I

think the four areas I talked about our

areas we're spending a lot more time

investigating and we believe that no

matter where we go in this continuum

technology will be at the core of what

we will differentiate these businesses

even if we end up in a real world

business in a physical environment

technologies underlying it and and I

think it'll be exciting to see over the

next few years six us

[Applause]